Hypo-Leasing d.o.o. Beograd

MIGA has provided a guarantee to Hypo-Leasing Karnten GmbH (Hypo) of Austria to cover its $2 million equity investment in Hypo-Leasing d.o.o. Beograd (Hypo-Belgrade) in Serbia and Montenegro. MIGA's guarantee is for $1.8 million, and extends for of up to ten years. Coverage is provided against the risks of Expropriation and War and Civil Disturbance.

The project involves the setting up of fully-owned leasing subsidiary of Hypo in Belgrade. Hypo-Belgrade will offer medium- to long-term leases of industrial, transport and trade equipment to local companies. Until a planned Leasing law is introduced in Serbia and Montenegro, the financing will be done in the form of secured lending. The investment is expected to benefit small and medium-size enterprises (SMEs), and export-oriented companies.

In a region that is still recovering from military conflict, this project will help overcome the lack of funds in the banking system by improving local companies� access to medium term financing. Hypo-Belgrade will be the first local leasing company in Serbia and Montenegro, and will introduce modern leasing techniques, essential for the country�s nascent leasing sector. The project expects to directly generate up to 60 new jobs by the fifth year of operation. In addition, Hypo-Belgrade will indirectly create employment through other-related companies that will benefit from finance leases.