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About Dropdown Description

World Bank building
About

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

Learn More

Our Impact Dropdown Description

Hands husking peas into a basket full of peas
Our Impact

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

Learn More

Our Products Dropdown Description

Young woman bending down to tending to her outside chores
What We Do

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

Learn More

Projects Dropdown Descriptions

Hyundai building
Projects

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

Search Projects
Romania

HVB Bank Romania S.A.

$35.3 million
Financial Services
Project Brief
Not Active
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MIGA has issued a $35.3 million guarantee to Bank Austria Creditanstalt AG of Austria for a loan made to its wholly owned subsidiary in Romania, HVB Bank Romania S.A. (HVB-Romania), by KfW—Kreditanstalt für Wiederaufbau. The guarantee covers the risks of transfer restriction and expropriation of funds for a period of up to 10 years. This is MIGA’s third guarantee in support of this project. [1]

Since its establishment in 1998, HVB-Romania has expanded considerably its products and services, operating nine branches in Romania at the end of 2003. With its lending activity heavily focused on small and medium-size enterprises, HVB-Romania is contributing to the growth of the country’s private sector. The loan by KfW will be devoted primarily to its lending portfolio for SMEs, which in turn will continue to strengthen Romania’s private sector and its economy overall. In addition to its pivotal role in SME financing, HVB-Romania also plays a leading role in the process of privatization, providing know-how, technical solutions and new products, as well as in trade, project, and investment financing.

HVB-Romania currently employs 300 people, mostly clerical and professional staff, in 12 branches. Salaries are about 20 percent above the industry average in Romania, and additional benefits, such as medical insurance and low-interest personal loans, are also provided. Bank Austria Creditanstalt’s on- and off-site staff-training programs are available to HVB-Romania employees. Contributions to government revenues are expected to exceed €2 million over the next five years. It is estimated that the increase in export revenues resulting from expansion will be roughly €15 million.

This project is compatible with the key goals the World Bank’s country assistance strategy for Romania of enhancing the role of the private sector, reforming the financial sector, and improving the country’s investment environment. MIGA’s support of this project is based on the crucial impact that a more vibrant and efficient finance sector can have on Romania’s economy.

 

[1] The guarantee was cancelled on March 16, 2014.

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