Originally published: June 23, 2008
Source: MicroCapital.org
Bank Austria Creditanstalt (BA-CA) is establishing a fund for credit guarantees with the equivalent of USD15.4 million in capital. The bank will use the capital to facilitate credit guarantees for Bulgarian MFIs. The fund will cover bank issued guarantees for a four year term ending in 2012. Financial details of possible investments in the fund are not yet available.
The first initiative of the fund will be to refinance loans given to MFIs by banks in Bulgaria. BA-CA plans to have the fund cover 90% of the risk for the MFIs. For the second initiative, the funds will refinance loans that were initially given by international companies. The fund will also cover 75% of the risk accumulated by the debtor from local financing institutions.
No further information is available on other possible fund investors. Additionally, it is not clear whether or not BA-CA expects a return on capital or if the fund is non-profit.
Read the complete article: UniCredit’s Bank Austria Creditanstalt Provides $15.4m to Establish a Fund for Credit Guarantees to Refinance Loans for Bulgarian Microfinance Institutions (MFIs) (MicroCapital.org)