EBRD grants 67-million-euro loans to Bosnia

(SARAJEVO) - The European Bank for Reconstruction and Development (EBRD) on Wednesday said it had approved two loans totalling 67 million euros (94 million dollars) to help strengthen Bosnia's financial and gas sectors.

A 50-million-euro (70-million-dollar) loan was granted to Bosnia's deposit insurance agency that will enable it to more than double the deposit insurance coverage from the current 20,000 convertible marks (10,200 euros, 14,300 dollars) to 50,000 convertible marks, the EBRD said in a statement.

This means that people depositing money in saving accounts with banks are guaranteed to get up to 50,000 convertible marks of their deposit back if the bank collapses.

"This will offer an important confidence boost to the country's financial sector, thus ensuring further development of the banking system in Bosnia-Hercegovina," the statement said.

Another 17-million-euro (24-million-dollar) credit was granted to finance a new natural gas pipeline from the central town of Zenica to Travnik that is expected to become operational in 2012.

Since the beginning of its operations in Bosnia the EBRD has committed over one billion euros in various sectors of the Balkan country's economy.