The Andorran Financial Authority publishes the Activity Report 2021

29/07/2022

The Activity Report 2021 of the Andorran Financial Authority details the organisational structure, the functions and powers, as well as the financial resources available to it and their budgetary implementation.

It also lists the main actions carried out in 2021 to promote and ensure the proper functioning of the Andorran financial system and its stability and reputation, a financial year marked by the gradual recovery of the global health and economic crisis and the outbreak of war between Ukraine and Russia.

Particularly noteworthy in the field of international cooperation are the participation of the AFA in the first consultation of the Principality of Andorra on Article IV of the Articles of Agreement of the International Monetary Fund (IMF) and the progress necessary to initiate the processes of constitution of the first international reserves of the Principality of Andorra that will improve both the country’s international credibility and its financial capacity to cope with the payments of the goods it imports and its public debt.

During this year 2021, for the first time, the countercyclical buffer applicable to credit exposures located in the Principality has been defined, in accordance with international standards, as an element of strengthening the own funds of banking entities to absorb possible losses in periods of crisis or economic and security difficulties for their bank’s depositors. In the area of investor protection, in addition to the actions for the resolution of queries and complaints, a Technical Communiqué has been issued regarding the communication of potential infringements and the procedure to be followed in the event of becoming aware of possible infringements of the rules applicable to the financial system.

Activity Report 2021