Bosnia and Herzegovina

Project number:


Business sector:

Depository Credit (banks)

Notice type:


Environmental category:


Approval date:

15 Jul 1997



PSD disclosed:

17 Jun 1997


Project Description

DM 2 million (ECU 1 million) equity investment in Market Banka's share capital, which shall represent approximately 35 per cent of the bank's DM 5.8 million paid-in equity and 20 per cent of the voting rights.

Project objectives: To assist Market Banka in strengthening its capital base; to provide guidance and institution building through the EBRD's seat on the management board and a comprehensive technical assistance package; and to assist Market Banka to attract other shareholders and additional funding sources.

Transition Impact

The institutional strengthening and guidance for a young but well-managed bank will support the emergence of a private sector in Bosnia and Herzegovina, contribute to the lengthening of maturities in credit markets, offer a natural contact for potential foreign banking partners and, above all, set and demonstrate high standards for Bosnia's financial sector. These potential impacts are increased to the extent that trade between the different ethnic areas is gradually reintegrated.

The Client

Market Banka d.d., Sarajevo was established in 1992 by local companies operating in the Sarajevo area. At the end of 1996, the balance sheet of the bank was DM 36.8 million, shareholders' equity DM 2.4 million, operating income DM 3.6 million and net income DM 273,000. The bank has 50 staff and has recently opened branches in Gorazde, Visoko and Mostar.

EBRD Finance

The EBRD is proposing to invest DM 2 million (ECU 1 million) equity in Market Banka's share capital, which shall represent approximately 35 per cent of the bank's DM 5.8 million paid-in equity after the EBRD's contribution and 20 per cent of the voting rights. The investment will be in the form of newly issued convertible preference shares, with a prescribed rate of return priced at Libor plus a commercial margin.

Project Cost


Environmental Impact

Market Banka will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. In implementing these procedures, Market Banka will require its borrowers to comply, at a minimum, with national/local health, safety, environmental and public consultation requirements.

Technical Cooperation

A twinning arrangement with a foreign partner acceptable to the EBRD will be a precondition to the EBRD's investment. This programme is expected to take place over a period of 24 months and will cover all areas where external assistance is deemed necessary. The total cost for this technical assistance programme is expected to be approximately ECU 1.7 million, to be funded by the EU Phare Bangkok Facility.

Company Contact



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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