Raiffeisenbank Austria d.d.

MIGA has provided Raiffeisen Zentralbank Österreich AG with a guarantee covering its €110 million shareholder loan to Raiffeisenbank Austria d.d. of Croatia. The guarantee, for €104.5 million ($128.1 million), covers against the risks of transfer restriction and expropriation for a period of six years. The project will allow Raiffeisenbank Austria d.d. to finance its expansion in the local market, with the aim of contributing to the recovery of the Croatian economy through the provision of both corporate (including SMEs) and retail loans.

The project, supported by MIGA, is expected to yield a number of developmental benefits, including introducing new products, more efficient services at competitive prices, and know-how and technical improvements to the Croatian financial services sector. Local SMEs and exporting companies will receive support through greater access to financing. Moreover, MIGA’s coverage will enable the bank to increase its medium-term commercial financing, encouraging competitive pricing and providing better terms for loans.

These development impacts complement the World Bank Group’s country assistance strategy (CAS) for Croatia, which focuses on addressing the country’s post-war reconstruction needs. The CAS aims to achieve economic growth in Croatia by attracting and leveraging private and foreign direct investment flows. Consequently, the focus is on supporting local SMEs, promoting infrastructure investments, and improving access to finance.