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
- Mercator – H Croatia
- Project ID
- Fiscal year
- Guarantee holder
Ljubljana (SID Bank, Inc.; Ljubljana)
SID – Slovenska Izvozna in Razvojna Banka, d.d.
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- June 09, 2011
- Project Board date
- June 23, 2011
- Gross exposure
- $29.0 million
- Project type
On August 4, 2011 MIGA issued a guarantee of $29 million for reinsurance of the SID Bank, Inc.; Ljubljana coverage to the Mercator retail group (Mercator) in Croatia. MIGA is reinsuring the investment for a period of up to six years, against the risks of transfer restriction, expropriation, and war and civil disturbance.
This project brief comprises four projects in Croatia for the guarantee holder.
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.
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.