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MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Explore different types of political risk insurance guarantees provided to investors and lenders.

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Our Impact Dropdown Description

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Our Products Dropdown Description

Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

Projects Dropdown Descriptions

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Croatia

HVB Bank Croatia d.d.

$60.63 million
Financial Services
Project Brief
Not Active
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MIGA has provided Bank Austria Creditanstalt AG with a guarantee covering its EUR65 million shareholder loan to HVB Bank Croatia d.d. The guarantee, for EUR61.8 million, covers against the risk of transfer restriction for a period of up to 10 years. The project will allow HVB Croatia to further expand its in-country operations, focusing mainly on financing small and medium-size enterprises (SMEs) and on-lending for projects in the energy and food industry sectors, among others. Through its upcoming merger with Splitska Banka, the bank is expected to play an even more important role in the financial sector as the country's third largest bank.

The project complements the World Bank Group's country assistance strategy, which is to help Croatia achieve economic growth by improving the environment and incentives for attracting financial flows, particularly private and foreign direct investment. To do so, the Bank's efforts are focused on SMEs, improving access to housing finance, encouraging contractual savings, and promoting infrastructure investments. This follows a number of years of lending for infrastructure and related sector reforms, focused on addressing the country's post-war reconstruction needs.

 

The project, supported by MIGA, is expected to yield a number of developmental benefits. MIGA's coverage will allow the bank to increase lending, particularly medium-term financing for productive investments, encouraging competitive pricing and better terms for loans. The project will also introduce new products, more efficient services at competitive prices, and know-how and technical improvements. SMEs will receive a critical boost through improved access to financing, as will Croatian export-earning companies. It will continue to support local community activities such as SOS Children's Village, and other humanitarian efforts, as well as participate in diverse cultural projects in cooperation with Bank Austria.

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