Licence Guarantees are insurance instruments required by regulatory authorities…
Licence Guarantees are insurance instruments required by regulatory authorities under Albanian legislation governing the licensing of economic activities. Their purpose is to guarantee compliance with the conditions and obligations set out in a licence. They serve as a protective mechanism for public authorities and third parties, ensuring that the licensed entity operates in line with the required legal, technical, and regulatory standards.
If licence conditions are not met, legal obligations are breached, or activities are discontinued contrary to the applicable rules, the competent authority is entitled to call on the guarantee up to the specified amount. These guarantees contribute to greater regulatory certainty and the protection of the public interest in licensed sectors.
· The type of guarantee
· The guaranteed amount
· The guarantee period
· An assessment of the guaranteed party’s financial capacity and economic stability, based on financial data from at least the previous two years
