The Bank of Albania has decreed a new policy for Albanian banks' exposure to debt.

The Bank of Albania has, in language reminiscent of Borat's, approved a regulation entitled "On the Risk Management from Large Exposures of Banks."

According to the amendments, banks’ investments in Albanian government debt securities, in foreign currency, may be risk-weighted for 50%. At the same time, according to the amendments approved in the regulation, in calculating permissible exposures to the Albanian government for investments in foreign-currency securities, banks will benefit from a reduction by 50%.

This abrogates a previous measure of the same title from 2008. It comes into force on 31st December this year. It is pursuant to articles 12 and 43 of the Bank of Albania Law 1997 (no 8269, as amended) and articles 60-65 and 131 of the Banks in Albania Law 2006. The supervision department of the Bank of Albania has added proposals.