EBRD to provide 100-mln-euro stand-by credit line to Albanian agency
TIRANA, June 11 (Xinhua) -- The European Bank for Reconstruction and Development (EBRD) will provide a 100-million-euro (120 million U.S. dollars) stand-by credit line to the Albanian Deposit Insurance Agency (ADIA) guaranteed by the Albanian government to strengthen the stability of the local banking sector and boost customers' confidence, Albania's Ministry of Finance and Economy said in a press release on Friday.
Representatives of the Albanian government and the EBRD signed the agreement on the credit line on Friday, according to the press release.
The funds will be available to compensate insured depositors, reassure commercial and private bank clients and provide back-up liquidity following the severe impact of the COVID-19 pandemic on the country's economy.
The signing of the agreement marks the successful completion of a long process of cooperation between the Albanian government, ADIA and the EBRD, said the ministry.
"The 100-million-euro stand-by credit line to ADIA is a demonstration of trust and support from the EBRD to the Albanian economy and financial sector institutions," Minister of Finance and Economy Anila Denaj said.
Following the signing of the agreement, EBRD President Odile Renaud-Basso reiterated her institution's commitment to the country.
"We are determined to support Albania in its eventual recovery from the economic impact of the pandemic and would like to see the country return to robust and sustainable growth as soon as possible," Renaud-Basso said.
"This credit line is considered an additional mechanism, which adds to our security elements, as it will strengthen the financial capacity of the deposit insurance scheme by guaranteeing the necessary liquidity in case of insurance events within a very short time," ADIA's General Director Genci Mamani said.
ADIA is an independent public institution founded in 2002. Its mission is to protect individual depositors and to pay out insured deposits in case of bank failure in Albania. Enditem