MIGA Announces Landmark Increase in Availability of Political Risk Insurance
Washington, February 12, 1999 — The Multilateral Investment Guarantee Agency (MIGA) today announced a landmark increase in the amount of political risk insurance coverage it may issue for foreign direct investments in a project and host country. MIGA's project limit more than doubled from $50 million to $110 million, and its country limit increased from $250 million to $350 million, as approved by the Agency's Board of Directors.
Additional amounts of insurance coverage are also available through MIGA's reinsurance and coinsurance arrangements with other insurers. For example, by adding treaty reinsurance, the project and country limits are effectively $135 million and $450 million, respectively. These increases will enable investors to obtain higher levels of insurance coverage for their new investments in MIGA's 127 member developing countries. The new country limit is vital to host countries whose outstanding exposures have been fast-approaching MIGA's allowable limit.
Motomichi Ikawa, MIGA's Executive Vice President, noted that the new project limit will also enhance MIGA's ability to facilitate investments that require significant amounts of insurance coverage.
Roger Pruneau, Vice President of Guarantees, remarked, "The increased limits will allow MIGA to better serve the needs of both large and small investors. This endorsement by MIGA's Board and increased cooperation with private insurers through expanded reinsurance and coinsurance arrangements, will enable MIGA to facilitate higher levels of foreign direct investment to its member developing countries in the future."