I.C.S. Raiffeisen Leasing S.R.L.

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On November 9, 2012, MIGA issued a guarantee totaling €4.75 million ($6.0 million equivalent) covering a shareholder loan by Raiffeisen Bank S.A. of Romania to I.C.S. Raiffeisen Leasing S.R.L in Moldova (RLMD). The coverage is for a period of up to five years against the risks of war and civil disturbance, transfer restriction, and expropriation. Raiffeisen Bank S.A.'s shareholder loan of €5.0 million is aimed at enhancing the capacity of I.C.S. Raiffeisen Leasing S.R.L. to provide operating leases for motor vehicles, machinery, and equipment in the Moldovan market. MIGA has provided earlier support for RLMD's start up and expansion. This project is expected to contribute to further development of the financial sector in Moldova by widening financing sources, particularly to segments of the economy that are currently underserved. Moldova's credit penetration is low compared to other countries in the region. It is also aligned with the World Bank Group's Country Partnership Strategy for Moldova that emphasizes the need to enhance competitiveness of the country's enterprise sector, encourage more investment activity, and promote the expansion of small and medium enterprises. The project underscores MIGA's strategy of promoting investments into countries eligible for concessional lending from the International Development Association and South-South investments. The project is underwritten through MIGA's Small Investment Program.

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