SARAJEVO (Bosnia and Herzegovina), May 19 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) said it is considering providing a 30 million euro ($33.8 million) stand-by credit line to Bosnia’s Deposit Insurance Agency (DIA), to be made available under a sovereign loan to Bosnia and Herzegovina.
EBRD’s current 30 million euro stand-by credit line to DIA will expire in October 2025, the lender said in a statement on Friday.
“The credit line ensures that DIA keeps adequate contingency financing in place for its liquidity needs and will also ensure necessary coverage of the insured deposits and thus maintain and ensure confidence in the country’s banking sector,” EBRD said.
EBRD’s credit line will provide emergency back-up financing in case the country doesn’t have immediate and regular access to international capital markets, and when the central bank is unable to provide emergency liquidity support to DIA.
DIA, founded in 2022, is a state-owned legal entity that provides deposit insurance to all eligible depositors who hold accounts with member banks.