Splitska banka d.d.

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MIGA has provided a $61.8 million guarantee to Bank Austria Creditanstalt AG (Bank Austria) of Austria to cover its $65 million shareholder loan to Splitska banka d.d. (Splitska) in Croatia. The coverage is for a period of 10 years and against the risk of Transfer Restriction. Bank Austria's shareholder loan will allow Splitska to increase its lending in Croatia, thereby bolstering the country's financial sector through the provision of medium-term financing. Splitska will continue to play a leading role in providing expertise, technical solutions and new products to the Croatian financial sector. In addition, the project will increase the availability of capital with longer tenors to Croatian companies. Splitska has numerous downstream benefits as it expects to on-lend to companies in sectors such as tourism, construction and manufacturing. Splitska also expects to provide loans to SMEs in need of financing and thus improve their access to financial services.   While Splitska will not directly contribute to export earnings, it will on-lend to Croatian companies involved in exporting and indirectly contribute to Croatia's foreign exchange earnings.

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