Changes and additions made to law “On deposit insurance”, as amended

Official Bulletin no. 263, dated 11 January 2017

The Parliament of Albania, on 22.12.2016, approved several changes and additions made to law “On deposit insurance”, as amended.

Firstly, the law substitutes the use of term ‘custody’ with ‘extraordinary intervention’, as well as the phrase ‘or the participation of the Agency in sale of bank or bridge bank’ with ‘or the participation of the Agency in financial means transferring, in accordance with law “On the recovery and exceptional intervention on banks on the Republic of Albania”.

As a result of this act, a change is made to point 8 of article 42 by defining that funds of Deposit Insurance Agency, in accordance with current legislation regarding deposit insurance, cannot be blocked, sequestrated or subjected to obligatory execution, besides the purpose of its existence.

Another important change is defined by article 52, letter ‘f’ of point 1 which includes the competence of the Leading Council to make a decision on converting the deposit compensation fund in liquid means, in order to fulfill liabilities towards insured depositors, in case of an insuring event, also on Agency’s claims regarding ceded rights because of compensation of the depositors.

Lastly, a change is made to letter ‘c’ of article 60 according to which the financial means of the Agency will be used to cover all the administrative expenses of the compensation process, by with article 38 and 39 of this law, as well as the participation of the Agency by transfer of financial means in accordance with law ‘On the recovery and exceptional intervention on banks on the Republic of Albania’.