|
Europe and Central Asia
The perception of commercial and non-commercial risk in the Europe and Central Asia region has increased as a result of the economic crisis. To help address the challenges, the largest multilateral investors and lenders in the region—the EBRD, the EIB Group, and the World Bank Group—agreed to provide up to €24.5 billion ($31 billion) to support the banking sector in the region and to fund lending to businesses. The financial support includes equity and debt finance, credit lines, and political risk insurance. Within this package MIGA will provide political risk insurance capacity of up to $3 billion to help the banking sector meet its pressing capital and liquidity needs and back financing from parent banks.
In fiscal year 2009 MIGA issued 12 guarantees totaling $1.2 billion for ten projects in the financial sector in Europe and Central Asia. At year-end, MIGA’s gross guarantee exposure stood at $3.8 billion, or 52 percent of the agency’s outstanding portfolio.
MIGA has issued guarantees for projects in Kazakhstan, Latvia, Hungary, Russian Federation and other countries to help banks with long-term liquidity and improvement of asset-liability management.
Going forward, MIGA intends to continue to assist the financial sector in affected countries to meet their pressing capital and liquidity needs.
Updated September 2009
|