Tackling high euroization: 35% of gross written premiums are in euro currency

35% of gross written premiums of insurances in Albania are realized in the euro currency.

In the framework of the strategy for reducing euroisation, the Financial Supervisory Authority has also published an analysis of the degree of use of the euro in non-bank financial markets that are regulated by this institution.

In addition to green card and border security products, there are some voluntary products that result in 100% income generated in euro, such as voluntary accident and health products, life insurance and health insurance during travel, student life insurance, or life insurance of the depositor.

The capital market is dominated by government debt securities that are mainly in Albanian Lek and the degree of euroization is quite low.

However, there are also private companies that have carried out foreign currency emissions, mainly in bonds.

According to the FSA analysis, the use of foreign currency in the markets that it supervises is generally at low levels and it is dictated by the activity profile of the financial institutions.

However, the FSA does not exclude that, in certain segments of these markets, there may be a need for measures that reduce euroization and strengthen the use of the national currency.

The Authority will focus on raising awareness of the private issuers of securities for the risks associated with foreign currency borrowing, while the core earnings of the activity are in Albanian Lek.

FSA will also require transparency for products offered to investors, particularly in terms of clarifying and understanding the exchange rate risk.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.