Romanian bank issued guarantee
Miga issued a €14.2mn guarantee to Bank Austria Creditanstalt for its €15mn shareholder loan to HVB Bank Romania, designed to help the Romanian bank expand its in-country operations. The coverage protects the investor against the risk of transfer restriction for a period of up to five years.
The undertaking is part of a broader World Bank Group effort that focuses on targeted poverty interventions, the promotion of growth through private sector development, and governance and institutional reform. The project will bolster the Romanian financial sector through the provision of medium-term financing and will aid the process of privatization in Romania. In addition, HVB Romania will improve the availability of funds with longer tenors and generate competitive pricing and terms in the country’s financial sector.
HVB Romania, a wholly owned subsidiary of Bank Austria Creditanstalt, serves more than 10,000 clients and employs about 160 people. The guaranteed shareholder loan will place a special focus on assisting small and medium-size enterprises (SMEs), which play a key role in generating export earnings and additional employment for the country.take me back