Andorra's Ministry of Finance announced that the Council of Ministers has approved a draft bill to amend the Law on the recovery and resolution of banking entities and investment firms, as part of ongoing alignment with international and European standards under Andorra’s Monetary Agreement with the European Union. The reform is intended to protect the public interest and shield taxpayers in a banking crisis by establishing a mechanism to ensure that any resolution costs fall on the institution’s shareholders and creditors rather than on public finances. It incorporates the latest changes introduced in the equivalent European directive, including revisions to key definitions, the treatment of different financial instruments, and strengthened early intervention powers and resolution assessments for the National Resolution Authority (AREB). The amendments were developed primarily with AREB, with participation from the Andorra Financial Authority (AFA) and the financial sector.
Ministry of Finance (Andorra) 2025-11-19
Andorra's Ministry of Finance wins Cabinet approval for draft bill updating bank and investment firm recovery and resolution rules
Andorra's Ministry of Finance announced the Council of Ministers' approval of a draft bill amending the Law on the recovery and resolution of banking entities and investment firms, aligning with EU standards. The reform ensures resolution costs fall on shareholders and creditors, not taxpayers, and updates definitions, financial instrument treatment, and enhances powers for the National Resolution Authority. The amendments were developed with input from the National Resolution Authority, Andorra Financial Authority, and the financial sector.