EuroTel Bratislava, a.s.

For the first time MIGA provided 95 insurance coverage for commercial bank and shareholder debt financing, enhancing its ability to play an important role in international project finance. MIGA insured a portion of the expansion of EuroTel Bratislava a.s., one of two nationwide wireless telecommunications providers in the Slovak Republic. MIGA issued a Euro-denominated insurance equivalent to $22.1 million for long-term loans made by Bank of America, Citibank N.A., and ABN-AMRO Bank N.V. and $3.8 million for shareholders' loans extended by MediaOne Group and Bell Atlantic Corporation.

The guarantees issued to Bank of America, Citibank, and ABN-AMRO cover the risks of transfer restriction, expropriation, and war and civil disturbance. The shareholder loans extended by MediaOne Group and Bell Atlantic Corporation are covered against the risks of transfer restriction and expropriation.

The total cost of EuroTel's GSM expansion is estimated at $250 million, including a $150 million capital investment to increase network capacity and $100 million refinancing of short-term bridge loans. The project will help to address rising demand for high-quality telecom services in the Slovak Republic. The resulting capacity increase is expected to accommodate approximately 250,000 new subscribers to EuroTel's digital wireless network in the next two years.