HVB Bank Bosnia-Herzegovina d.d.and Central Profit Banca d.d.

MIGA issued two €11.2 million ($13.6 million) guarantees and two €5.6 million ($6.8 million) guarantees to Bank Austria Creditanstalt A.G. (BACA) supporting loans to HVB Bank Bosnia-Herzegovina d.d. (HVB-BiH) and Central Profit Banca d.d. (CPB-BiH).

The guarantees for both projects cover a period of seven years and provide coverage against the risks of transfer restriction, expropriation, and war and civil disturbance. The guarantees help BACA expand and strengthen its two subsidiaries in preparation for their merger. The loans will allow BACA to increase its lending in Bosnia and Herzegoninia, there by bolstering the country’s financial sector through the provision of medium-term and long-term financing, and more competitive pricing to retail and corporate clients.

BACA will continue to play a leading role in providing expertise, technical solutions and new products to the financial sector. HVB-BiH and CPB-BiH expect to provide loans to SMEs in need of financing and thus improve their access to financial services.