According to MIGA website, on December 29, 2016, MIGA issued a guarantee of $198.6 million covering the equity investments by UniCredit Bank AG’s (UBA) of Austria and UniCredit S.p.A.’s of Italy for their equity investment in UniCredit Bank d.d. in Bosnia and Herzegovina. The $198.6 million MIGA guarantee will cover the equity investments for a period of up to 10 years against the risk of expropriation of funds.
It will help UCG obtain relief from the capital adequacy requirements by reducing the risk weighting for the reserves maintained by UCG’s subsidiary in Bosnia and Herzegovina. This will free up equity tied up for country risk purposes and allow UCG’s subsidiary to extend more credit that will stimulate growth, generate employment, and reduce poverty in the country.
No contact information provided at the time of disclosure.
ACCOUNTABILITY MECHANISM OF MIGA
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