MIGA issued three contracts of $23.3 million, $46.4 million, and $582,801 to Raiffeisen Zentralbank Österreich AG (RZB) of Austria and Raiffeisenbank A.S. (RBCZ) of the Czech Republic for their respective $24.5 million, $48.8 million, and $0.613 million loans to Raiffeisenbank a.d. (RBSM), based in Serbia and Montenegro. The guarantees are for periods of five, six, and six years respectively and provide coverage against the risk of a currency transfer and expropriation.
The project involves the expansion of RBSM’s banking services and is expected to con-tribute the development of the private sector in Serbia and Montenegro (SAM). The investment will strengthen and diversify RBSM’s lending portfolio. Moreover the financing package will also increase the availability of funds with longer tenors available in the marketplace—generating competitive pricing and terms for loans to Serbian companies.
RBSM will create jobs and employees will benefit from the RZB network for on- and off-site staff training (with the training budget amounting to 5% of the gross wages), thus transferring knowledge of modern banking practices and financing structures to the SAM’s financial market.
Noted: contracts with Raiffeisenbank a.s. of the Czech Republic have been cancelled.