Skip to navigation Skip to main content Skip to site map


Project Brief

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. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.


Project name
Société Générale Banka Srbija a.d. Beograd – Central Bank
Project ID
Fiscal year
Guarantee holder
Société Générale S.A.
Investor country
Host country
Environmental category
Date SPG disclosed
November 04, 2013
Project Board date
December 10, 2013
Gross exposure
 $206.0 million
Project type

View Summary of Proposed Guarantee

On December 31, 2013, MIGA issued guarantees of €150 million ($206.0 million) covering new and existing equity investments from Société Générale S.A. of France to its subsidiary in Serbia, Société Générale Banka Srbija a.d. Beograd. The coverage is for a period of up to 10 years against the risk of expropriation of funds of mandatory reserves maintained by the Serbian subsidiary with the Serbian central bank. 

Société Générale has supported the growth of its Serbian subsidiary through equity injections. It aims to reduce the risk weighting for the mandatory reserves maintained by Banka Srbija a.d. Beograd held with the Serbian central bank through obtaining expropriation of funds coverage from MIGA. The resulting capital relief will free up equity previously tied up for country-risk purposes and create headroom for generating new risk-weighted assets for productive investments in Serbia’s economy.

The equity that MIGA’s guarantee frees up will allow Société Générale’s Serbian subsidiary to grow its business and increase its lending activities in Serbia through creating headroom in the risk-weighted asset ceiling for the Société Générale Banking Group’s Serbian business. The bank can extend new loans to borrowers in Serbia over the life of the coverage. Supporting productive businesses through credit extension will stimulate growth, employment generation, and poverty reduction in the country.

The project is aligned with the second Joint IFI Action Plan that seeks to help countries in Central and Southeastern Europe cope with the impact of the euro-zone crisis and its lagging recovery and, more specifically, the ongoing deleveraging by western parent banks.

The project is also aligned with the World Bank Group’s strategy for Serbia as it seeks to address the spillover from the financial crisis.


The World Bank Group logo