On 06 May 2020, the Government of Albania has approved a decision which amends the current DCM no. 277, dated 06/04/2020, on the approval of the state loan guarantee with second-tier banks for the salaries of merchants or companies, whose activity has been affected by precautionary measures against Covid-19. Under the revised decision, the Ministry of Finance and Economy (MFE) will reimburse second-tier banks the interest arising from business loans guaranteed by the state line guarantee, once every quarter year, where the first quarter will begin to be calculated from the date of the conclusion of the guarantee agreement.
MFE will now act as a guarantor for both the principal and the interest of the loan, causing the borrower to repay the loan with zero interest. However, the revised decision provides that only the borrowers which do not have non-performing loans, in February 2020, shall be entitled to get loans guaranteed through the state line guarantee.
The revised decision provides that the banks will not apply fees, commissions, penalties, interest or any other measure that may generate costs for the borrower and MFE, except those expressly specified in the Guarantee Agreement.
Based on this decision of Council of Minister, the second-tier banks shall submit a refund request to the MFE every three months, which shall contain detailed information regarding the generated interests and the method of their calculation, for each loan that the lender granted in accordance with the guarantee agreement. This request shall be submitted either in paper or electronically. MFE, after reviewing the information and verifying the calculations of the refund request, authorizes the transfer of payment to the lender within 15 days upon receipt of the request.