Raiffeisenbank a.d.
MIGA issued guarantees for $49.3 million and $82.2 million to Raiffeisenbank a.s. (RBCZ) of the Czech Republic for shareholder loans to Raiffeisenbank a.d. (RBSM) in Serbia and Montenegro. The guarantees are for a period of six years and provide coverage against the risks of transfer restriction and expropriation of funds.
These guarantees add to MIGA’s previous support of RBCZ’s investments in RBSM. The loan provides medium-term funding to RBSM, which in turn will enable it to increase the availability of medium-term financing to the corporate sector, including small and medium-size enterprises. The investment will strengthen and diversify RBSM’s lending portfolio. Moreover, the financing package will also increase the availability of funds with longer tenors available in the marketplace, generating competitive pricing and terms for loans to Serbian companies.
The RSBM project complements the World Bank Group’s development strategy for Serbia and Montenegro, which aims in part to restore macroeconomic stability and external balance, stimulate near-term growth, and create the basis for a sustainable supply response in the economy by strengthening the financial sector. In underwriting this project, MIGA meets two of the agency’s development priorities as it supports an SME project in an IDA-eligible country.