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Press Release

Fiscal Year 1996: Record Guarantee Results

Fiscal Year 1996: Record Guarantee Results

Washington, D.C., August 5, 1996 — The Multilateral Investment Guarantee Agency (MIGA) today announced record growth in its investment guarantee business for fiscal year 1996, which ended June 30. MIGA issued 68 investment guarantee contracts for US$862 million in new coverage, compared to 54 contracts for US$672 million in FY95. MIGA-insured projects in FY96 also exceeded FY95 totals in the amount of foreign investment facilitated (US$6.6 billion versus US$2.5 billion). In FY96 MIGA assisted private firms from 17 different countries in making investments in 27 host developing countries.

Mr. Akira Iida, MIGA's Executive Vice President, noted the significant developmental impact of these investments: "MIGA-insured investments in FY96 are expected to create a total of 7,200 local jobs in the countries in which they are located. Most of these investments also have a significant local training component."

MIGA's outstanding portfolio of 177 contracts at the end of FY96 rose to approximately $2.27 billion in coverage, for projects in 40 countries. MIGA has now issued a total of 223 contracts in its seven-year operational history.

MIGA insurance in FY96 covered investments in a broad range of countries and sectors. Investment guarantees were issued for the first time in Kuwait, Kyrgyz Republic, Mali, Nepal, and Papua New Guinea. Significant amounts of coverage were issued in the infrastructure sector, especially for power and telecommunications projects.

Commenting on the FY96 results, which saw premium income increase from US$14.4 million to US$21.9 million, Leigh P. Hollywood, MIGA's Vice President, Guarantees, said: "MIGA has played an increasingly significant role in facilitating private investment flows to developing countries. I am optimistic about MIGA's future growth, given its strong pipeline of investor applications for coverage."

MIGA country membership also rose to 134 during FY96 with the addition of six new countries (Algeria, Armenia, Colombia, Guinea, Republic of Yemen, and Sierra Leone). An additional 21 developing countries have signed the MIGA Convention and are in the process of fulfilling membership requirements.

MIGA also provides a range of investment marketing services and technical assistance to developing and transition member countries to help promote their private investment opportunities. Among these activities, MIGA successfully organized major regional investment promotion conferences on the development of the mining sector in Africa and the tourism industry. MIGA has actively promoted IPAnet, a global investment marketplace located on the Internet that facilitates the exchange of information among members of the international investment community.