Raiffeisenbank dd Bosnia and Herzegovina

MIGA issued a guarantee of up to $3.8 million in coverage for a shareholder loan by Raiffeisen Zentralbank Osterreich AG for the development of Raiffeisenbank dd in Bosnia and Herzegovina. The project will finance the development of Raiffeisenbank's operations throughout the country, making it the first foreign bank to have activities in the Federation of Bosnia and Herzegovina and in the Republika Srpska. The coverage is for the risks of transfer restriction and expropriation of funds. Coverage of up to $1.8 million is also being offered under the MIGA-administered European Union Investment Guarantee Trust Fund.

The project supports the country's focus on accelerating the privatization of banks and enterprises and reforming the financial sector. These priorities are key to stimulating the private sector development and reconstruction needed to help the country continue on its path of post-war recovery. Specifically, the project aims to help facilitate the economic integration of the entities, offer a full range of banking services to local SMEs, and to introduce new banking methods and technology to the country.