Investors and lenders in today's dynamic investment climate understand the potential benefits of investing in emerging markets. They also understand the critical importance of addressing the political risks that may accompany an investment in such markets. MIGA can help investors and lenders deal with these risks by insuring eligible projects against losses relating to:
- Currency inconvertibility and transfer restriction
- War, terrorism, and civil disturbance
- Breach of contract
- Non-honoring of financial obligations
MIGA provides political risk insurance (guarantees) for projects in a broad range of sectors in developing member countries, covering all regions of the world.
MIGA guarantees offer much more than just the assurance that losses will be recovered. Our insurance also benefits investors and lenders by:
- Deterring harmful actions - MIGA’s status as a member of the World Bank Group and its relationship with shareholder governments provides additional leverage in protecting investments.
- Resolving disputes - As an honest broker, MIGA intervenes at the first sign of trouble to resolve potential investment disputes before they reach claim status, helping to maintain investments and keep revenues flowing. If MIGA is unable to prevent a claim, our strong balance sheet allows us to make prompt payments.
- Accessing funding - Our guarantees can help investors obtain project finance from banks and equity partners.
- Lowering borrowing costs - MIGA-guaranteed loans may help reduce risk-capital ratings of projects.
- Increasing tenors - The agency can provide insurance coverage for up to 15 years (in some cases 20), which may increase the tenor of loans available to investors.Providing extensive country knowledge - MIGA applies decades of experience, global reach, and knowledge of developing countries to each transaction.
- Providing environmental and social expertise - MIGA helps investors and lenders ensure that projects comply with what are considered to be the world’s best social and environmental performance standards.