The Minister of State for Entrepreneurship and Business Climate has introduced a draft law for the establishment of the Development Bank of Albania (“DBA”), a specialised public financial institution designed to facilitate financing for small and medium enterprises, start-ups, and underfinanced sectors. The bank is also envisioned as a key player in promoting exports of domestic products and services, as well as supporting public projects and various infrastructure developments.
The DBA will be structured as a joint-stock company headquartered in Tirana, with an initial capital of approximately EUR 100 million. The State will maintain a controlling stake of at least 51% at all times, while the remaining shares can be acquired by international financial institutions, banks, investment funds and other entities determined by subordinate acts. To achieve its objectives, the DBA will be authorised to grant loans, make financial investments, issue securities, and engage in other financial activities. Additionally, it would have the ability to raise funds through various financial mechanisms, including public refundable deposits. Another noteworthy feature of the draft law is the exemption of the DBA from the income tax.
The governance structure will consist of four key decision-making bodies: the General Assembly, the Supervisory and Managing Boards, and an Audit Committee, with specific provisions governing their responsibilities, competencies, and the qualification criteria. Furthermore, the bank’s financial operations will be subject to independent audits conducted in accordance with international auditing standards.
Notably, DBA will be excluded from standard bankruptcy and liquidation procedures and will not be subject to Albania’s general banking regulations. Its dissolution will be governed by a separate legal act, while its cooperation with the Bank of Albania will be governed by a formal agreement, outlining account management, reporting obligations, and data-sharing mechanisms.
The draft law has recently completed the public consultation phase and is expected to be included in the parliament’s legislative agenda in the coming month.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
By Anisa Rrumbullaku, Partner, and Adi Brovina, Senior Associate, Kranovic & Partners
