The Bosnian State Parliament adopted a law today that will almost triple the state’s current guarantee for bank deposits to 10,256 Euros.
The measure was designed to recover public trust in domestic banks, Bosnian officials said.
The Bosnian Central Bank proposed in October an increase in state guarantees for deposits of up to 7,700 Euros, but the government has since decided to raise the figure.
The bank has undertaken a series of measures to avert panic among citizens, many of whom lost their bank savings during the 1992-1995 Serbian,Montenegrin and Croatian aggressions against Bosnia. At least 200 million Euros in deposits has never been returned to the public.
Amid the global financial crisis, some of Bosnia’s biggest commercial banks were hit in October by an unusual increase of euro cash withdrawals.
But the situation appears to have calmed since.According to the International Monetary Fund, Bosnia is likely to be spared the worst of the global crisis because of the country’s stable financial system.
The Bosnian economy is still recovering from the devastating war, with almost a third of the workforce unemployed and the average monthly wage at about 400 Euros.