HVB Bank Romania SA (HVB)

MIGA issued a $69.8 million guarantee to Bank Austria Creditanstalt AG for its $70 million shareholder loan to HVB Bank Romania SA (HVB). The coverage protects the investor against the risks of transfer restriction and expropriation for a period of up to ten years. This is the second guarantee issued to HVB; in fiscal 2003, MIGA underwrote a €15 million shareholder loan to HVB to help it expand its in-country operations. It will contribute to the development of the country’s banking system and corporate gov-ernance. The new shareholder loan will allow HVB to continue expanding its lending oper-ations in Romania, thereby bolstering the Romanian financial sector through the provision of additional medium-term financing. In addition, the project allows HVB to provide term-financing, including to the SME sector. Finally, HVB estimates that the expansion of its activities will indirectly support the generation of an additional $23 million in annual export revenues by financing export-related enterprises.