EBRD provides €200 million stand-by credit line to Deposit Insurance Agency

The European Bank for Reconstruction and Development (EBRD) is providing a €200 million stand-by credit line to Serbia’s Deposit Insurance Agency (DIA), to strengthen banking sector stability.

The EBRD financing will further strengthen the stability of the banking sector in Serbia by securing efficient and credible protection of insured deposits, supporting legal reforms of the deposit insurance regulatory framework and helping Serbia to deal with remaining challenges in the banking sector, it was stated in the EBRD’s announcement for Serbia delivered to Tanjug.

Capital increase in the Deposit Insurance Agency also aims at attracting new investments in financial sector.

Additional grant funding for the institutional capacity building and technical assistance to the DIA is being extended by the government of Luxembourg and the EBRD’s Shareholder Special Fund.

The Deposit Insurance project is a landmark investment for the EBRD as it supports the development of the local banking market infrastructure, it was stated in the announcement.

- We are supporting the government’s efforts to strengthen the stability of the financial sector and this transaction is a clear testimony to the EBRD’s commitment”, said EBRD Director, Serbia, Matteo Patrone.

According to the minister of finance, Dusan Vujovic, this agreement with the EBRD demonstrates the important partnership we have with the EBRD in enhancement of the deposit insurance system and the institutional capacity of the DIA.

He outlined the agreement is a major boost for the country’s financial sector and the financial support will contribute to higher depositor confidence and comprehensive protection to the potential investors

Since the start of its operations in Serbia, the EBRD has invested more than €3.8 billion in more than 180 projects. The Bank invests in the financial sector, industry, commerce, agribusiness, energy and infrastructure.