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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
Zagrebacka Bank
Project ID
Fiscal year
Guarantee holder
Unicredit Bank Austria
Investor country
Host country
Environmental category
Date SPG disclosed
May 19, 2010
Project Board date
June 03, 2010
Gross exposure
 $326.7 million
Project type

View Summary of Proposed Guarantee

MIGA has issued a guarantee of $326.7 million to UniCredit Bank Austria AG (UBA) for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.  The project involves a $378 million shareholder loan from UBA of the UniCredit Group, to its subsidiary Zagrebačka Banka d.d. (ZABA) in Croatia.

The shareholder loan is intended to serve two purposes. First, this loan is being extended in view of UBA’s approach to always maintain sound and strong liquidity standards amongst its subsidiaries. Consequently, UBA intends to improve ZABA’s structural liquidity ratio by lengthening the tenor of ZABA’s funding to better match its liabilities. Second, this loan is intended to support new lending in the Croatian economy.

The project falls under MIGA’s Financial Sector Initiative. As a result of the recent financial crisis, the state of Croatia’s economy remains delicate. This project forms part of MIGA’s response to the crisis and is consistent with the objectives of the Joint IFI Action Plan, a coordinated program of the World Bank Group, the European Investment Bank, and the European Bank for Reconstruction and Development. 

Given ZABA’s size and systemic importance in Croatia’s banking, support to this project is critical to making the sector more resistant to future unforeseen shocks.  With 130 branches, almost 800 ATMs, and nearly 310,000 online customers, ZABA is the largest retail and corporate bank in Croatia.

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