The initiation of the project to establish a system of deposit insurance in Kosovo has been started by the CBK with financial and advisory support financed by the German Government (through KfW) since 2007. The first milestone has been marked with the passage of the Law on the Establishment of the Deposit Insurance System for deposit taking Financial Institutions in Kosovo by the end of 2010 to be continued with the signing of the three-party Financing and Project Agreement (hereinafter: Agreement) between the Government of Kosovo (through MoF), the German Government (through KfW) and DIFK (as Project-Executing Agency). The Agreement has been signed to support the establishment of the deposit insurance system in Kosovo by capitalizing the deposit insurance fund (DIF) with EUR 15.5 million, where EUR 11 million are provided by the Government of Kosovo (through MoF) whereas the German Government (through KfW) has provided EUR 4.5 million capital contribution and EUR 0.5 million in advisory services.
The Government of Kosovo (through MoF) and DIFK have signed a Memorandum of Understanding on 27th September 2011 to formalise the commitment of the Republic of Kosovo for capitalization of DIF as well as to establish the procedures for the provision of EUR 11 million by end of March 2013. As of end of December 2012, DIFK has received just above EUR 6.2 million as a capital contribution from MoF (on behalf of the GoK) from which EUR 2.9 million has been financed by IDA loan (through World Bank).
DIFK is a Project-Executing Agency in charge for coordination and implementation of the projects.