Raiffeisen Leasing Serbia and Montenegro

MIGA issued two contracts of €38 million ($46.5 million) and €19 million ($23.9 million) to Raiffeisen A.S. of the Czech Republic and one contract of €0.475 million ($0.6 million) to Raiffeisen Zentralbank Österreich AG of Austria for their respective €40 million, €20 million, and €0.5 million loans to Raiffeisen Leasing Serbia and Montenegro (RLSM). The guarantees are for a periods of five, four, and four years and provide coverage against the risks of a currency transfer and expropriation.

The operations of RLSM will contribute to the development of the private sector in Serbia and Montenegro (SAM) through the establishment of a leasing subsidiary of the Raiffeisen Group. The financing package will be used to fund the project’s leasing portfolio, with about 60% of the leases to be provided to small and medium-sized enterprises (SMEs) in order to support their capital investments and to replace outdated equipment.

In addition to direct job creation the project is also expected to create jobs indirectly in the companies that will benefit from leases and expand their operations. RLSM employees will benefit from the RZB network for on-and off-site staff training, thus transferring knowledge of advanced leasing structures to SAM’s financial market. The project supports the private sector development objectives of the World Bank Group strategy which aims to stimulate near-term growth and create the basis for a sustainable supply responses from the private sector.