PROJECT

Projects

Summary of Proposed Investment

Project Number

23381

Company Name

Podgoricka banka a.d.

Date SPI Disclosed

Jun 15, 2004

Country

Montenegro

Industry

Financial Markets

Projected Board Date

Jul 20, 2004

Status

Completed

Sector

Commercial Banking - General

Department

Regional Industry FIG LAC & EUR

Environmental Category

FI-2 - Limited

Previous Events

Approved : Dec 23, 2004
Signed : Apr 15, 2005
Invested : Oct 25, 2005

Project Description

The proposed project is a jeopardy case and involves the recovery of IFC’s arrears in Montenegro, the Republic of Serbia and Montenegro. These loans were made by IFC to enterprises and a bank in Montenegro during the 1980’s. The loans stopped being serviced after the break-up of Yugoslavia in the early 1990’s. As part of a settlement of these arrears, IFC would subject to satisfactory due diligence:

- acquire a stake of at least 10% in Podgoricka Banka a.d., Podgorica (PB or the bank); and
- extend a loan of up to EUR 5 million to PB.

Sponsor / Cost / Location

Development Impact