The project is funded by Luxembourg Cooperation. The purpose of the mission is to formulate ToR for Rural Water Supply and Sanitation network. Have nationality of one of the member states of the EU countries. Proven experience in rural finance services in transition economies. Before the war, lending was guided not so much by economic principles as by development targets set by the political leadership.
Average size is small, with a limited territorial coverage of their branch networks.
Eight of the 12 banks in the Republika Srpska are owned by state enterprises. All of the state banks are deeply insolvent, as the result of unpaid claims on pre-war foreign exchange deposits and the large volume of distressed loans on their books. Moreover, also the majority of the new private-sector banks have a very small net equity capital. From an operational point of view, local banks in BiH face substantial constraints. Although the level of trust placed by the population in banks, and especially privately owned banks, has increased, up to now the institutions have been able to mobilise household savings only on a very limited scale.