EBRD mulls 50 mln euro stand-by credit to Bosnia's deposit insurance agency

As a stand-by credit line the EBRD finance is designed to provide immediate funds to DIA, if and when required, to fulfill its mandate in compensating its depositors, the lender said in a statement.

The proposed financing to DIA aims to enhance the deposit insurance fund liquidity profile and will also support the reforms undertaken in the country's deposit insurance system in view of the new legislation framework related to bank resolution, the EBRD noted.

It added that the transaction will also support the ongoing efforts to align the legal and regulatory framework with international best practices.

DIA was established by the law on deposit insurance in banks of Bosnia and Herzegovina in August 2002. It is an independent, non-profit legal entity designed to provide deposit insurance to all eligible depositors that hold accounts with member banks.

($=0.8526 euro)