Terribly banal island next to a country (7)
I believe the answer is:
albania
'country' is the definition.
(I know that Albania is Balkan country)
'terribly banal island next to a' is the wordplay.
'terribly' is an anagram indicator.
'island' becomes 'i' (geographical abbreviation).
'next to' says to put letters next to each other.
'banal' is an anagram of 'alban'.
'alban'+'i'+'a'='ALBANIA'
(Other definitions for albania that I've seen before include "Mediterranean country" , "Southeast European republic" , "Tirana is the capital city" , "State" , "Country on Adriatic coast" .)