Kosovo Deposit Guarantee Fund, Phase II

completed

The aim of the project is to strengthen the effectiveness of the Kosovo Deposit Protection Fund. The fund was set up as part of the Financial Cooperation (FC) between Germany and the Republic of Kosovo (BMZ No. 2007.66.360). Following the successful establishment of the fund, the current project now envisages further strengthening the institution by increasing the level of protection per saver. This measure is intended to achieve future-oriented protection of deposits and to extend the maturity of deposits by increasing depositor confidence (the aim of the FC measure). The target group is primarily small savers and private depositors in Kosovo. Kosovar banks also benefit indirectly from the measure through improved refinancing through sustained increases in customer deposits. In order to achieve the project goal, the initial capital endowment of the Deposit Protection Fund (total pledged EUR 15.5 million; of which EUR 4.5 million is a grant under the German FC and EUR 11 million is a grant from the Republic of Kosovo) is to be increased. An FZ grant of EUR 2 million is to be made available for this purpose.