Credit Line to the Deposit Protection Fund of Montenegro

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 40846

Status Cancelled

Location

Montenegro

Business Sector

Notice Type

State

Project ID 40846

Status Cancelled

Location

Montenegro

Business Sector

Notice Type

State

Environmental Category

Approval Date

26 Oct 2010

Disclosure date

10 Dec 2009

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The EBRD is considering providing a EUR 30 million standby credit line fully covered by the sovereign guarantee to the DPF. As a standby credit line it is designed to operate similarly to an insurance product. It would provide immediate funds to DPF (if a need arises to pay out depositors) but would be substantially more cost effective than a loan. As a result the credit line will provide necessary coverage and thus maintain and ensure confidence in the country’s financial sector by enabling the DPF to raise coverage in stages to the EU prescribed EUR 50,000.

Transition Impact

The proposed project will help build confidence in the banking system as individual deposit insurance coverage will increase. Its specific transition impact derives from the fact that it will help Montenegro to catch up with its neighbours in terms of the guaranteed deposit level (EU prescribed level of EUR 50,000). Furthermore by building confidence in the banking system the project will establish a framework for markets, resulting in deposit growth along with the implementation of the new Deposit Protection Fund Law. In addition the framework of markets will reduce moral hazard as the implemented Laws will strengthen the supervisory and regulation function.

The Client

The Deposit Protection Fund of Montenegro is an independent, non-profit institution. It provides insurance to owners of deposits held with banks and thus contributes to stability of the financial system. The main objective of deposit protection scheme is to ensure that citizens and companies will not lose their savings and deposits held with banks if their bank becomes insolvent.

EBRD Finance

EUR 30 million Standby Credit Line.

Project Cost

EUR 30 million.

Environmental Impact

Categorised FI (2008). There are no adverse environmental and social issues associated with the DPF’s activities; therefore the DPF will not be required to adopt environmental & social management systems as per PR9. Like all EBRD clients, the DPF will need to apply PR 2 to its own staff.

Technical Cooperation

None.

Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com

Transition impact

ETI Score:60

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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