|Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.|
This summary covers MIGA’s proposed reinsurance of the SID Bank, Inc.; Ljubljana coverage to the Mercator retail group (Mercator) in Croatia. MIGA’s reinsurance for the investment would result in a gross exposure of $59.4 million. SID has applied for MIGA’s reinsurance for a period of up to four years, against the risks of transfer restriction, expropriation, and war and civil disturbance.
MIGA’s support to SID Bank, Inc.; Ljubljana is in accordance with MIGA’s mandate to cooperate with national entities of its member countries, as stated in MIGA’s Convention. By providing facultative reinsurance, MIGA is allowing SID Bank, Inc.; Ljubljana to reduce its net exposure to Mercator and to free up capacity for other investment insurance projects.
The project is a category FI under MIGA’s Policy on Social and Environmental Sustainability.
Mercator is helping to stimulate exports among Balkan countries by carrying goods from the other countries in each of its retail locations. As a result, Mercator is expanding the venue for suppliers to sell not only in their respective countries, but also in neighboring countries where Mercator has an established presence. In addition, Mercator’s further expansion in the Balkans, supported by SID Bank, Inc.; Ljubljana and MIGA, will provide employment and retail training opportunities in these countries.
MIGA is also helping to establish best practices with respect to corporate governance as well as environmental and social policies in the host countries.