| Project Detail |
On March 7, 2025, MIGA issued a guarantee of up to EUR161.6 million for the equity investments (including retained earnings) by Erste Group Bank AG (Erste Group) in its subsidiary in Serbia, Erste Bank akcionarsko drustvo Novi Sad (Erste Bank Serbia). The MIGA guarantee is expected to provide regulatory capital relief to Erste Group on a consolidated level by reducing the amount of Risk Weighted Assets (RWAs). The tenor of the guarantee is expected to be up to 5 years (the Project). Erste Group is one of the largest banking and financial services group in Austria and the Central and Eastern European region. Its subsidiary banks outside of Austria are required to maintain reserves at the central banks in their respective jurisdictions. Mandatory reserves in Erste Bank Serbia contribute to Erste Group’s overall RWA at the consolidated level, resulting in less headroom for other assets at a given level of capital. |
