Deposit Insurance Fund of Kosovo



Project number:


Business sector:

Non-depository Credit (non bank)

Notice type:


Environmental category:


Approval date:

17 Dec 2013



PSD disclosed:

19 Sep 2013

Translated version of this PSD: Albanian

Project Description

The EBRD is considering providing a EUR 10 million standby credit line to the Deposit Insurance Fund of Kosovo (DIFK), fully guaranteed by the Kosovo.

As a standby credit line the EBRD finance is designed to operate similarly to an insurance product. It would provide immediate funds to DIFK, if and when required, to fulfill its mandate in compensating its depositors, but as a standby line would be substantially more cost effective than a loan.

The credit line is a part of DIFK’s contingency financing mechanism for its liquidity needs and will ensure necessary coverage of the insured deposits and thus maintain and ensure confidence in the country’s financial sector. It will also facilitate DIFK’s ability to raise coverage in stages as scheduled in the revised Deposit Insurance Law of Kosovo from EUR 2,000 currently to EUR 5,000 in the year 2018.

Transition Impact

The project will help to build confidence in the banking sector as individual deposit insurance coverage will increase.

The specific transition impact is expected to derive from building frameworks for markets. Effective deposit insurance systems are a crucial part of well-functioning banking sectors. By providing depositors with insurance for their deposits, they contribute to financial stability by increasing confidence in local banks.

Well-functioning deposit insurance funds therefore encourage households to deposit their money in these banks and decrease the risk of run on banks in times of crisis.

The Client

The DIFK is an independent public entity responsible for the management of the Deposit Insurance Fund, reports to the Central Bank of Kosovo (“CBK”) and is governed by a Management Board.

The Fund enjoys operational and administrative autonomy and functions outside the framework of the Kosovo government structures and the Kosovo civil service.

Its objective is to protect small depositors from losses in case of a bank failure as well as to support the Central Bank of Kosovo in meeting its objective to foster the soundness, solvency and efficient functioning of a stable, market-based financial system.

EBRD Finance

Up to EUR 10 million.

Project Cost

Up to EUR 10 million.

Environmental Impact

Categorised FI (2012). There are no adverse environmental and/or social risks associated with the DIFK’s activities; therefore the DIFK will not be required to adopt environmental & social management systems as per PR9. Like all EBRD clients, the DIFK will need to apply PR 2 to its own staff.

Technical Cooperation

It is estimated that up to EUR 300,000 will be needed for a capacity building TC in DIFK for up to 24 months. Capacity building will include strengthening management capacities and establishing best practices.

Implementation summary

The two standby credit lines were tailored to the needs of DIFK, designed to be available under certain pre-agreed conditions with the purpose of making funds available to compensate insured depositors. The lines have enabled DIFK to sustain a target coverage ratio of total insured deposits consistent with international best practice. The lines are part of DIFK's contingency financing mechanism and have facilitated DIFK's ability to raise deposit insurance coverage in stages as scheduled in the Amended Law on Deposit Insurance from EUR 2,000 to 3,000 in 2014, to EUR 4,000 in 2016 and to EUR 5,000 in 2018.

As part of Transition Impact, the Projects improved the stability and confidence in the banking sector in Kosovo as the individual deposit insurance coverage increased.

The Bank has also provided DIFK with TC support, financed from the Shareholders’ Special Fund, for the development and implementation of the Depositor Compensation System. The system has been operational since end of 2016 and it allows DIFK to quickly and accurately compensate insured depositors, in line with EU directives and IADI’s core principles on deposit insurance. A new TC project was approved to help DIFK with preparing for the implementation of risk-based premium system based on European Banking Authority guidelines. The project commenced in March 2021 and is expected to last for nine months.

Company Contact

Deposit Insurance Fund of Kosovo
Street Garibaldi
11/3 Prishtina, 10000
Tel: +381 38 222 505

Procurement or tendering opportunities

Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email:


Business opportunities

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