Raiffeisen Bank d.d. Bosnia and Herzegovina

During fiscal year 2004, MIGA issued four guarantees totaling €66.55 million ($78.5 million) to Raiffeisen Zentralbank Österreich AG (RZB) for its shareholder loans to Raiffeisen Bank d.d. Bosnia and Herzegovina (RBBH). The guarantees issued were in the amounts of €19 million ($21.8 million), €23.8 million ($29.0 million), €19 million ($22.0 million) and €4.75 million ($5.7 million). The guarantees for the four projects cover periods of nine, three, seven and seven years, respectively, and provide coverage against the risks of transfer restriction and expropriation.

In fiscal 2003, MIGA provided coverage to RZB for its €10 million shareholder loan to RBBH. The new guarantees cover further expansion of the project enterprise’s lending program in fiscal 2004. The additional shareholder loans provided by RZB will help RBBH strengthen its capital base and increase its lending in Bosnia and Herzegovina.

RBBH offers a wide range of products and services, including payment services, retail banking and credit facilities, trade finance services, and corporate finance including long-term lending, treasury finances, and investment banking services. Further details about the projects appear in MIGA’s 2003 Annual Report.