Closed Joint Stock Company UniCredit Bank Russia

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MIGA has issued a guarantee of $90.25 million covering UniCredit Bank Austria AG's $95 million shareholder loan to the Closed Joint Stock Company UniCredit Bank in Russia.  The coverage is for a period of up to three years against the risks of transfer restriction, expropriation, and war and civil disturbance. UBA's shareholder loan will help UBRU manage the balance of its assets and liabilities, maintain compliance with internal control requirements related to the liquidity crisis, and support UBRU's growth and regional expansion plan. The loan is part of a broader funding strategy of the UniCredit Group to finance its subsidiaries, and is particularly important in view of the current turmoil in financial markets worldwide including the Russian Federation. It will also help enable small and medium-size enterprises (SMEs) in the region to receive credit at a time when financing is scarce for business growth. A significant portion of UBRU's lending activities support SMEs. MIGA's support for the banking sector in Russia is consistent with the World Bank Group's efforts to help countries cope with the turmoil in the global financial markets.  MIGA has supported several other guarantees in the Russian Federation in a wide range of sectors, including infrastructure at the sub-sovereign level, mining, manufacturing and financial sector.  In the financial sector, MIGA supported various investments in leasing, banking and mortgage financing.

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