EBRD Mulls 30 Mln Euro Standby Credit Line to Montenegro’s Deposit Protection Fund

“As a standby credit line it is designed to operate similarly to an insurance product,” the EBRD said in a statement on Thursday.

“It would provide immediate funds to DPF (if a need arises to pay out depositors) but would be substantially more cost effective than a loan.”

Thus, the credit line will help build confidence in the Montenegrin banking system as individual deposit insurance coverage will increase to the European Union prescribed 50,000 euro.

Eleven commercial banks, all of them privately-held, operate in the Adriatic state of some 620,000 people.