DIFK - Second Standby Credit Line



Project number:


Business sector:

Non-depository Credit (non bank)

Notice type:


Environmental category:


Approval date:

14 Dec 2016



PSD disclosed:

22 Dec 2016

Translated version of this PSD: Albanian

Project Description

The EBRD is providing a standby credit line in the amount of up to EUR 24 million to the Deposit Insurance Fund of Kosovo (DIFK), fully guaranteed by the Republic of Kosovo.

The standby credit line is tailored to the needs of DIFK and will be provided in three tranches between 2016-2020. The first tranche is committed at signing while the other two tranches are uncommitted. The stand-by credit line is designed to be available under certain pre-agreed conditions with the purpose of making funds available to compensate insured depositors. The product will enable DIFK to sustain a target coverage ratio of total insured deposits consistent with international best practice.

The credit line is part of DIFK's contingency financing mechanism and it will also facilitate DIFK's ability to raise deposit insurance coverage in stages as scheduled in the Amended Law on Deposit Insurance from the current EUR 4,000 to EUR 5,000 in 2018.

Transition Impact


The credit line will improve stability and confidence in the banking sector in Kosovo as the individual deposit insurance coverage will increase.

A well-developed and stable deposit insurance scheme is a key component of the infrastructure to support an efficiently functioning banking market. By providing depositors with insurance for their deposits, DIFK contributes 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.

By providing support to DIFK through the proposed credit line, EBRD will contribute to further developing the financial infrastructure in Kosovo, increasing trust in the banking system and protection for small depositors In the longer term, the project could also positively impact the availability of funding and, in turn, potential lending capacity of the banking sector.

Client Information


DIFK is an independent public institution established in June 2011 under the Law on The Establishment of a Deposit Insurance System for Financial Institutions in Kosovo.

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, marketbased financial system.

EBRD Finance Summary

EUR 24,000,000.00

1.EUR 14 million committed at signing
2. Up to EUR 6 million uncommitted and to be made available in 2018
3. Up to EUR 4 million uncommitted and to be made available in 2020

Total Project Cost

EUR 24,000,000.00

Environmental and Social Summary

Categorised FI. 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. The only environmental and social risks would be labour (PR2) and occupational health and safety (PR4) risks associated with DIFK's management of its staff. As with all EBRD clients, DIFK will need to comply with the Bank's PR2 and PR4.

Technical Cooperation


Company Contact Information

Deposit Insurance Fund of Kosovo
Street Pashko Vasa, NN 1-st floor #Qyteza Pejton# Prishtina, 10000 Kosovo

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. 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 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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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