BiH Deposit Insurance Fund Credit Line III

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a €30 million stand-by credit line ("SBCL") to the Deposit Insurance Agency of Bosnia and Herzegovina ("DIA BiH") to be made available under a sovereign loan to Bosnia and Herzegovina ("BiH"), as the current €30 million SBCL expires in October 2025. As a stand-by credit line, the EBRD finance is designed to provide immediate funds to DIA BiH, if and when required, to fulfil its mandate to compensate insured depositors or participate in bank resolution.

Project ID 55992

Status Exploratory

Location

Bosnia and Herzegovina

Business Sector

Financial Institutions

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Gorana Krunic
aod@bih.net.ba
+387 51 223 446
+387 51 223 452
www.aod.ba
Vase Pelagica 11a 78 000 Banja Luka Bosnia and Herzegovina

Project ID 55992

Status Exploratory

Location

Bosnia and Herzegovina

Business Sector

Financial Institutions

Notice Type

State

Approval Date

23 Jul 2025

Disclosure date

16 May 2025

Project Description

Project Objectives

The credit line ensures that DIA BiH keeps adequate contingency financing in place for its liquidity needs and will also ensure necessary coverage of the insured deposits and thus maintain and ensure confidence in the country's banking sector. Having in place a stand-by credit line as a source of back-up financing is in line with the international best practices and recommendations for deposit insurance schemes. In addition, as prescribed by the new Law on Deposit Insurance of BiH, the contingency financing will now be available in case of DIA BIH's participation in bank resolution.

Transition Impact

ETI score: 64

The Project will continue strengthening the capacity of DIA BiH and its credibility, which will decrease the risk of a deposit run in crisis times and improve the overall confidence in the banking sector. In the longer run, maintaining a credible deposit insurance system should have a positive impact on the growing deposit base and increase the funding available, thus supporting the Resilient quality. While complementing on-going work on EU directives compliance, tailored cybersecurity support will contribute to the Well-governed quality through the completion of a cybersecurity gap analysis, creation of a roadmap, and training of senior management, thus helping DIA BiH achieve, for the first time, alignment with international best practices of the CIS18 IG 2 Cybersecurity Framework.

Client Information

BOSNIA AND HERZEGOVINA SOVEREIGN

The Borrower is Bosnia and Herzegovina, while the SBCL is in favour of the state-owned DIA BiH. The Agency was established by the Law on Deposit Insurance in Banks of Bosnia and Herzegovina in August 2002. DIA BiH is an independent, non-profit legal entity that primarily provides deposit insurance to all eligible depositors that hold accounts with member banks.

EBRD Finance Summary

EUR 30,000,000.00

Total Project Cost

EUR 30,000,000.00

Additionality

The Project will provide an emergency back-up financing facility, in a country that doesn't have immediate and regular access to international capital markets, and where the Central Bank is prevented by law from providing emergency liquidity support to DIA BiH in case of a banking failure and subsequent deposit pay-out or participation in the resolution of a failed bank. The proposed EBRD SBCL is currently the only viable access to emergency funding the DIA BiH can have in place. The project will also be gender additional, with DIA working alongside the Central Bank to sex-disaggregate data on deposits, as a part of the WE Finance Code.

Technical Cooperation and Grant Financing

The project will benefit from the cybersecurity due diligence, supported by the Digital Hub Cybersecurity Resilience TC Programme (CRP) Donor Funding, in the amount of EUR 20,000. Main objective of the assignment is to help DIA BiH identify any gaps in its cybersecurity posture, and assist with mitigation of those gaps. To this end, this assignment will focus on:

1) Conducting a cybersecurity gap analysis of DIA BiH's main digital assets and processes, to be assessed against relevant international standards;

2) Formulating an action plan for enhancing the company's cybersecurity posture; and

3) Designing and delivering a cybersecurity awareness training workshop for the company's senior management.

Company Contact Information

Gorana Krunic
aod@bih.net.ba
+387 51 223 446
+387 51 223 452
www.aod.ba
Vase Pelagica 11a 78 000 Banja Luka Bosnia and Herzegovina

PSD Last Updated

16 May 2025

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

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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BiH Deposit Insurance Fund Credit Line III

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

BiH Deposit Insurance Fund Credit Line III

Overview

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Environmental and Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)