Raiffeisen Bank Yugoslavia

completed

RBYU is anticipated to provide essential services to international joint ventures currently present or being established in Yugoslavia as well as to the local enterprises. Initially, the bank is expected to focus on providing the most basic services such as: (i) transaction services, (ii) loan products, (iii) deposits, (iv) letters of credit and guarantees, and (v) treasury operations. Further down the road, RBYU would also extend term loans to large and medium size Yugoslav corporate clients, provide services to retail clients and support payments from international organizations.RZB''s investment in Yugoslavia is a notable event for the Yugoslavia''s banking sector. If RBYU is successful, it will have a demonstration effect and will attract other western banks to invest in FR Yugoslavia. Therefore, it is important for IFC to support RBYU. The envisaged IFC investment will help to establish a solid intermediary for long-term funding to the corporate and retail sectors. The availability of good quality retail banking products to the general public is an important development of a banking sector. This project will facilitate the development of viable financial sector intermediaries in Yugoslavia, which is currently one of the most important objectives of the IFC and the World Bank in Yugoslavia.