De-euroization package: Albania discourages saving, borrowing in Europe’s single currency

TIRANA, Feb. 8 – Albania will start applying next June some de-euroization measures in a bid to discourage the current high levels of Europe’s single currency in the country’s banking system and improve the transmission of its easier monetary policy in boosting credit in the local currency. The new rules make it more expensive for commercial banks to provide Euro-denominated loans and accept deposits in Europe’s single currency, by increasing compulsory reserve requirements. Compulsory reserve requirements for lek-denominated deposits and loans, currently at about half of the total, have been lowered or kept at the same levels in a bid…