The UK-based European Bank for Reconstruction and Development (EBRD) recently agreed to provide a “standby credit line” in the amount of EUR 30 million (USD 35.2 million) to Bosnia and Herzegovina’s Deposit Insurance Agency (DIA) to help it protect the deposits of the customers of its 23 members. These members are financial institutions serving both individual and business customers. DIA is an NGO with offices in Banja Luka and Sarajevo. The new credit line replaces one established in 2010 in the amount of EUR 50 million (USD 58.6 million).
Manuela Naessl, the Head of Bosnia and Herzegovina for EBRD, said, “Supporting the stability of the financial sector in our countries of operations is one of the EBRD’s core priorities in the current challenging environment. We are delighted to renew our standby credit line with the Deposit Insurance Agency of Bosnia and Herzegovina as the new facility will contribute to the protection of depositors and help maintain confidence in the country’s banking sector.”
Founded in 1991, EBRD seeks to support a “transition to open, market economies, whilst fostering sustainable and inclusive growth” in 38 countries in Central Asia, Eastern Europe and North Africa. It does this by providing business advice; supporting trade finance; and investing debt and equity in funders of micro-, small and medium-sized enterprises. EBRD planned disbursements of approximately EUR 8 billion (USD 8.6 billion) during 2020 to grow its portfolio to EUR 48.5 billion (USD 52.4 billion). EBRD’s shareholders comprise 69 countries plus the EU and the European Investment Bank.
By Nathan Kiplagat, Research Associate
Sources and Additional Resources
EBRD press release
https://www.ebrd.com/news/2020/ebrd-to-help-boost-financial-stability-in-bosnia-and-herzegovina.html
Description of DIA credit line
https://www.ebrd.com/work-with-us/projects/psd/credit-line-to-the-deposit-insurance-agency-of-bih.html
DIA homepage
http://www.aod.ba
EBRD homepage
https://www.ebrd.com
EBRD 2019 annual report
https://www.ebrd.com/news/publications/annual-report/ebrd-annual-review-2019.html
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