Deposit Insurance Agency of Bosnia and Herzegovina

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 47386

Status Signed

Location

Bosnia and Herzegovina

Business Sector

Notice Type

Public

Project timeline

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

Project ID 47386

Status Signed

Location

Bosnia and Herzegovina

Business Sector

Notice Type

Public

Environmental Category

Approval Date

30 Sep 2020

Disclosure date

06 Oct 2017

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."

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

Good.

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

DEPOSIT INSURANCE AGENCY OF BOSNIA AND HERZEGOVINA

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
aod@bih.net.ba
+387 51 223 440

Transition impact

ETI Score:62

PSD last updated

01 Nov 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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