The World Bank approved a US$100 million loan to Albania aimed at strengthening the resilience of the banking sector and the regulation and supervision of non bank financial institutions.
“The reforms supported by this operation aim at addressing the current vulnerabilities of the financial sector and enhancing its resilience,” said Ellen Goldstein, World Bank Country Director for the Western Balkans.
“These reforms will enable the right environment for banks and nonbank financial institutions to expand credit to the private sector, which in turn will boost economic growth.”
The world Bank said that the operation is structured around three pillars: adopting policy measures to reduce NPLs and enhance the financial safety net; strengthening regulation, supervision, and resolution regime of banks and Savings and Credit Associations (SCAs); and strengthening the regulation and supervision of investment funds.
The Bank said the loan has an eight-year grace period and Albania will have to repay the loan within 31 years.
The World Bank has provided to Albania a total of US$2.56 billion of IDA credits, grants and IBRD loans since Albania joined the bank in 1991./tvklan.al