Joint Stock Company Import-Export Bank (Impexbank)

MIGA has issued a guarantee of $33.3 million to Raiffeisen Zentralbank Österreich AG (RZB) of Austria, covering a $35 million subordinated loan to its banking subsidiary, Joint Stock Company Impexbank of the Russian Federation. The coverage is for a period of up to seven years against the risks of expropriation and transfer restriction.

RZB's loan is to be used to increase Impexbank’s Tier II capital, support private sector operations, and finance anticipated loan growth in the country. The project is expected to contribute to better industry standards and the further development of the Russian banking sector. Foreign banks can introduce international best practices, advanced risk management systems, operational know-how, and training in countries with relatively weak and fragmented financial sectors. Impexbank’s expanded services are expected to benefit consumers and have a demonstration effect on Russian banks.

The project is in line with the World Bank’s country assistance strategy for Russia, one of the key objectives of which is to increase effective financial intermediation and opportunities for the entry and growth of new enterprises.