HVB Banka Serbia and Montenegro a.d.

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MIGA issued a guarantee for $11.7 million to Bank Austria Creditanstalt (BACA) AG covering its guaranty for a loan made by KfW—Kreditanstalt für Wiederaufbau to BACA's subsidiary HVB Banka Serbia and Montenegro a.d. (HVB-SAM), in Belgrade, Serbia and Montenegro. The guarantee is for ten years, and covers the risks of transfer restriction, expropriation, and war and civil disturbance.[i] MIGA issued two guarantees to the investor covering an e8 million investment into the project in fiscal 2004. The project is expected to increase longer-term financing and generate competitive pricing for retail and corporate clients. The funds will be dedicated almost exclusively to small and medium-size enterprises, including in the retail and food sectors. HVB-SAM is expected to play an important role in the ongoing restructuring of Serbia and Montenegro's financial sector by providing knowledge, technical solutions, and new products. HVB-SAM employs 146 staff in seven branches and expects to add more local employees over the next five years. HVB-SAM's staff will benefit from on- and off-site training. The project is part of an overall World Bank Group effort to help Serbia and Montenegro stimulate short-term growth and build effective institutions.   [i] The guarantee was cancelled on June 12, 2016.

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