MIGA insures investments made by investors in a MIGA member country into a developing member country. In certain cases, the agency may also insure an investment made by a national of the host country, provided the funds originate from outside that country and the host government specifically approves the investment. Corporations or financial institutions are eligible for coverage if they are either incorporated in and have their principal place of business in a member country or if they are majority-owned by nationals of member countries. A state-owned corporation is eligible if it operates on a commercial basis. Investments by a non-profit organization may be eligible if established that the specific investment will be carried out on a commercial basis.
MIGA insures cross-border investments. This includes new investments as well as investments associated with the expansion, modernization, or financial restructuring of existing projects, or where the investor demonstrates both the development benefits of, and a long-term commitment to, the project. Acquisitions by new investors, including the privatization of state-owned enterprises may also be eligible. Projects that MIGA cannot guarantee are described in MIGA's Exclusion List.
Types of foreign investments that can be covered include equity, shareholder loans, and shareholder loan guaranties, provided the loans have a minimum maturity of three years. Non-shareholder loans can be insured, as long as they relate to a specific investment or project in which some other form of direct investment is present. Other forms of investment, such as technical assistance and management contracts, asset securitizations, capital market bond issues, leasing, services, and franchising and licensing agreements, may also be eligible for coverage.
In keeping with MIGA's objective of promoting economic growth and development, investment projects must be financially and economically viable, environmentally sound, and consistent with the labor standards and other development objectives of the country hosting the investment.