Latin America and the Caribbean has proved relatively resilient in the face of rising debt stress, inflation, and uncertainty arising from the Russian war in Ukraine. Income and employment have largely recovered from the pandemic, and markets remain cautiously optimistic about the near future.
In FY23, MIGA issued guarantees for $1.8 billion in support of six projects, which included four non-honoring projects across Colombia, Mexico and Peru and two political risk insurance projects in Argentina and St. Lucia.
In FY22, MIGA issued guarantees for $1.6 billion in support of seven projects.
Examples of MIGA-Supported Projects in Latin America and the Caribbean
In January 2023, MIGA issued a guarantee to JPMorgan Chase Bank N.A. of the United States against the risk of non-payment of a Colombian peso-indexed loan of $300 million to Banco de Comercio Exterior de Colombia S.A. (Bancóldex) for a period of up to 3.5 years.
The MIGA-guaranteed loan will support Bancóldex’s objectives of strengthening the availability of funding for MSMEs, increasing financial inclusion across the country with a focus on gender pursuant to a new gender action plan, and transforming the market toward modernization, green finance, and innovation.
In 2023, MIGA has issued guarantees of up to $300 million to Fondo Mivivienda S.A. (FMV) to enhance access to homeownership for women and vulnerable populations in Peru. With this guarantee MIGA renews its support for FMV’s green mortgage programs, having issued a similar guarantee in 2022 for a $290 million loan.
MIGA’s 8th Annual Gender Leadership Award
In 2023, MIGA presented its 8th Gender Leadership Award to Claudia María González Arteaga, Chief Financial Officer at Colombia’s Business Development Bank (Bancóldex), at an event on International Women’s Day.
In FY22, MIGA issued guarantees to KLED Capital and CIFI LATAM to support installation, operation, and servicing of a modernized streetlights network in Saint Lucia.
With the installation of energy-efficient LEDs, the project will reduce streetlight electricity consumption by 68.9 percent. Energy savings from the LED streetlights are estimated to be about 6.8 GWh per year, corresponding to monetary savings of about $2.3 million per year, which will enable the government to focus on other development initiatives.