Deposit Insurance Agency of Bosnia and Herzegovina


Bosnia and Herzegovina

Project number:


Business sector:

Non-depository Credit (non bank)

Notice type:


Environmental category:


Approval date:

30 Sep 2020



PSD disclosed:

06 Oct 2017

Translated version of this PSD: Bosnian

Project Description

Provision of a EUR 30 million stand-by credit line to the Deposit Insurance Agency of Bosnia and Herzgovina (DIA BiH) which replaces the existing EUR 50 million stand-by credit line. It will be fully guaranteed by Bosnia and Herzegovina.

As a stand-by credit line the EBRD finance is designed to provide immediate funds to DIA BiH, if and when required, to fulfill its mandate in compensating its depositors, but as a stand-by line it would be substantially more cost effective than a loan.

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. The transaction will also support the ongoing efforts to align the legal and regulatory framework with international best practices, such as the Core Principles for Effective Deposit Insurance Systems and the pertinent EU regulations

Transition Impact


A strong deposit insurance system is a key component of an effectively functioning financial market.

The proposed financing to DIA BiH aims to enhance the Deposit Insurance Fund liquidity profile and will also support the reforms undertaken in the BiH deposit insurance system in view of the new legislation framework related to bank resolution. The project will thus contribute to bolstering confidence in the BiH banking sector.

Client Information


DIA BiH 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 designed to provide 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

Environmental and Social Summary

Categorised FI (2014 ESP). DIA BiH will be required to comply with PRs 2 and 4. PR 9 does not apply as DIA BiH is a public entity responsible for providing deposit insurance for other financial institutions, and therefore the only risks envisaged are those related to labour and health and safety.

Technical Cooperation

It is estimated that up to EUR 400,000 will be needed for a capacity building TC in DIA BiH. Capacity building will help DIA BiH implement the new Law on Deposit Insurance which introduces bank resolution mechanism into the banking system.

Company Contact Information

Josip Nevjestic
+387 51 223 440

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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