ZAGREBACKA BANKA AMONG BEST IN BOSNIA

SARAJEVO, Jan 24 (Hina) - In early February, the Deposit Insurance Agency of Bosnia's Croat-Muslim federation will sign the first contracts with the best banks, thus guaranteeing that all deposits up to 5,000 convertible marks will be paid out. The Agency was established two years ago, with expert and financial support from the United States Finance Department and the German GTZ organisation. The Mostar-based Zagrebacka banka of Bosnia and Herzegovina will be among the first to receive this type of additional guarantee aimed at helping with solvency, Agency manager Josip Nevjestic told reporters on Wednesday. The other three are Sarajevo-based UPI banka, Reifeissen bank BH, and Volksbank BH. A law on the insurance of deposits in Bosnia's federation regulates a series of strict criteria financial institutions have to meet in order for their clients to be able to received additional deposit protection guarantees. The most important among them is the net capital sum, which must not be smaller than 7.5 million marks. The census will be increased gradually. According to the manager, the very existence of the agency guarantees that all deposits made in quality banks will be truly protected. The agency's financial potential has been backed by bonds of the U.S. and German governments. (hina) ha sb