Mercator Trzni Centar Sarajevo d.o.o.

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MIGA provided an additional €3.5 million ($3.98 million) in reinsurance to the Slovene Export Corporation for the political risk insurance it has provided to Poslovni Sistem Mercator d.d. (Mercator) of Slovenia for its €10 million additional equity investment in Mercator Trzni Centar Sarajevo d.o.o. (Mercator TCS), in Bosnia and Herzegovina. Coverage is being provided for a period of nine and a half years against the risks of transfer restriction, expro-priation, and war and civil disturbance. The project involves operating a shopping mall in the center of Sarajevo. Since 2002, cash flows have been positive, and the new equity investment is aimed at positioning the investor for a possible expansion in the country. The shopping center creates positive externalities for customers and local suppliers. It increases the availability and the quality of goods in Sarajevo. In the first years of operation, Mercator developed partnerships with producers from Bosnia and Herzegovinia, and local goods represent over twenty-five percent of goods sold in the supermarket. In addition, approximately fifty percent of goods sold come from Slovenia. The project hosts a bank, a pharmacy, and other services and fosters private sector growth. It employs over 200 workers who received training from a staff exchange with Mercator shopping centers in Slovenia and Croatia.

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