HVB Banka Jugoslavija a.d.
MIGA issued €7.125 million ($8.47 million) and €0.475 million ($0.56 million) guarantees to Bank Austria Creditanstalt AG for its €7.5 million loan guarantee and €0.5 million share-holder loan made in support of HVB Banka Jugoslavija a.d. (HVB-SAM) in Serbia and Montenegro. The guarantees are for a period of 10 years and provides coverage against the risks of transfer restriction, expropriation, and war and civil disturbance.[i]
HVB-SAM was established in December 2001 and offers a wide range of products and services including payment services, deposits and term account maintenance, trade finance services, corporate finance including long-term lending and treasury services, and investment banking services.
The project will provide for an expansion of HVB-SAM operations by allowing it to increase its lending portfolio, mainly to small and medium enterprises, including retailers, and general commerce and food related enterprises. HVB-SAM’s additional loans will be provided predominantly to SMEs, which will increase both SMEs’ access to financing, and support economically sound projects.
[i] The guarantee was cancelled on June 12, 2016.