Hypo Alpe-Adria-Bank d.d.

MIGA has provided an additional €676,268 ($671,196) in coverage to Hypo-Alpe-Adria Bank AG (Hypo) of Austria, which has increased its investment in Hypo-Alpe-Adria Bank d.d. (HAAB d.d.) in Bosnia Herzegovina by €8,248,826 ($8,186,960). The coverage period remains at fifteen years, and coverage is against the risks of expropriation and war and civil disturbance.

MIGA, in conjunction with the European Investment Trust Fund, had provided coverage to Hypo for its earlier investment in this enterprise in fiscal 2001, when the project enterprise was known as Auro Banka d.d. The project supports the financial sector reforms in the country, which are among the main priorities of the government reform program. Hypo's investment is enabling HAAB d.d. to increase the volume of its lending activities, targeting the construction and agricultural industries. Details of the project appear in MIGA's 2001 Annual Report.