Banca Agricola S.A.

Raiffeisen Zentralbank Osterreich AG of Austria received a MIGA guarantee for its equity investment in Banca Agricola S.A. in Romania. The $47.73 million guarantee, which covers the investment against expropriation, will allow Raiffeisen to further develop its activities in Romania. Under the development plan, the bank will both expand current services and enlarge the number of banking services it offers to small and medium-size businesses, as well as to retail customers.

Banca Agricola, the third largest branch network in the country, is expected to help broaden the range and quality of commercial banking services and provide lower costs of financing. Through worldwide cooperation agreements linking Raiffeisen Zentralbank and numerous commercial banks, the project should enhance the inflow of FDI into Romania. An estimated $10 million will accrue to the government over the next three years in the form of taxes and dividends.