Banco de Galicia y Buenos Aires S.A.

Banco Santander Central Hispano S.A. of Spain received two MIGA guarantees—one for $48 million and one for $11 million—for its shareholder loans to Banco de Galicia y Buenos Aires S.A., one of Argentina's largest banks. The coverage is for the risks of transfer restriction and expropriation of funds. The guarantees are covering two projects in support of Banco Galicia's efforts to enlarge its SME and mortgage programs at competitive rates and terms.

By lowering the costs of longer-term financing, the projects are expected to improve the ability of agribusiness, manufacturing, and healthcare companies to expand their production facilities and increase output. Banco Galicia employees will receive special training programs related to the above financing. In addition, the projects will provide mortgage financing of up to 30 years. They are expected to generate approximately $4 million in tax revenues over the next five years.