Albanian Deposit Insurance Agency - II

Location:

Albania

Project number:

52468

Business sector:

Financial institutions

Notice type:

State

Environmental category:

FI

Approval date:

10 Mar 2021

Status:

Signed

PSD disclosed:

12 Mar 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Provision of a stand-by credit line to the Albanian Deposit Insurance Agency (ADIA) in the amount of up to EUR 100 million, which will be available for 2 years and fully guaranteed by the Government of Albania. ADIA would be able to drawdown funds from this credit line under certain pre-agreed conditions with the purpose of making funds available, make payments or transfers in respect of insured deposits in accordance with the law in Albania.

Project Objectives

The project will enable ADIA to put in place adequate emergency funding arrangements in order to maintain high confidence in the financial sector and to provide an efficient and credible protection for depositors in Albania.

Transition Impact

ETI score: 70

The expected transition impact of the project steams from its contribution to the Resilient and Well-governed transition qualities:

The project will contribute to the Resilient quality through putting in place emergency funding, which will strengthen ADIA's ability to withstand any potential bank and SCA failures in the context of the COVID-19 crisis and continue maintaining high confidence in the Albanian banking sector.

The project will also support the Well-governed quality through a comprehensive technical assistance programme focused on strengthening ADIA's operational capacity and governance by fully automating the pay-out process, by modernising the internal reporting system and by laying the foundations for introduction of a risk based premium approach.

Client Information

DEPOSIT INSURANCE AGENCY OF ALBANIA

ADIA was founded in 2002 as an independent public institution with the adoption of the Deposit Insurance Law. ADIA has a two-tier board structure consisting of a Governing Council and the General Director of the agency. The Board of Directors comprises five members.

EBRD Finance Summary

EUR 100,000,000.00

Total Project Cost

EUR 100,000,000.00

Additionality

Additionality is generated from the financing structure, risk mitigation and knowledge, innovation and capacity building. The project will provide emergency back-up financing of a significant amount and specific structure. The project mitigates economic and country risks by supporting confidence in the financial system, as well as by ensuring timely pay-out of deposits through the TC element, improving operational capacity and capabilities.

Environmental and Social Summary

Categorised FI (ESP 2019). This is a Deposit Protection transaction with a previous client, ADIA. Since there are no adverse environmental and social issues associated with deposit insurance, environmental and social management systems as per PR9 are not required. ADIA will be required to comply with the 2019 E&S Policy, specifically PRs 2 and 4, and update their existing procedures to reflect this if necessary. The client will be required to report annually on environmental and social matters, with a main focus on PR 2 and 4 reporting.

Technical Cooperation and Grant Financing

A Technical Cooperation (TC) Programme comprising of two dedicated TC assignments will support ADIA's to (i) modernize and automate its pay-out and complaint management process through the upgrading and enhancement of its Data Collection and Reporting System and (ii) develop the internal capacity to introduce differential risk based premium.

Company Contact Information

Arben Beja
abeja@asd.gov.al
+35542326989
www.asd.gov.al
Rr. Elbasanit, Pallati Edil Al – It, No 317 Tirana, Albania

PSD last updated

12 Mar 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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