The recovery and resolution of banks and investment companies Bill of Andorra is approved. The Government has approved the Recovery and Resolution Act of banks and investment companies, which aims to enable the resolution of any financial institution without entailing a serious interruption to the system, minimizing as much as possible the risk for taxpayers.
As stated by Finance Minister Eric Jover, this law completes the European directives that have been incorporated into Andorran legislation when the Monetary agreement was signed with the EU in 2011.
The Bill is to ensure, as far as possible, the continuity of the activities of banking entities and/or investment companies, whose interruption could disturb the economic activity.
It should also protect the depositors whose funds are guaranteed by the deposit guarantee system and ensure optimum use of the public resources that could have been invested to preserve the stability and functioning of the financial system.