WASHINGTON, November 28, 2023 – Japan has contributed an additional $2 million to the Support to Ukraine’s Reconstruction and Economy (SURE) Trust Fund, launched by the Multilateral Investment Guarantee Agency of the World Bank (MIGA) in February 2023. With this, Japan’s total contribution toward the trust fund reaches $25 million.
MIGA established the SURE Trust Fund, with Japan as the anchor donor in February 2023, to enable its guarantee issuance in Ukraine. In the immediate term, MIGA is providing guarantees to finance trade and essential goods, maintain credit and liquidity for small businesses, and support select real sector projects that have significant impact on the country’s economy. In the long run, MIGA will also provide political risk insurance (PRI) at scale to the real sector and is committed to supporting post-war reconstruction.
“We thank the government of Japan for its unwavering support toward SURE Trust Fund. This allows MIGA to provide critical support to Ukraine’s economy during the ongoing war,” said Hiroshi Matano, Executive Vice President of MIGA. “MIGA is leveraging its guarantee to enable the private sector do business in the country.”
As the earliest champion of the Fund, Japan is committed to help Ukraine overcome the impact of the Russian invasion on its economy, and support reconstruction by utilizing private capital.
“MIGA’s guarantees address a vital need to support the survival of Ukraine’s private sector during the ongoing war and private sector engagement during post-conflict reconstruction. Japan greatly appreciates MIGA's expertise in mobilizing private capital and operating in the region,” said Takahiro Tsuda, Director of the Multilateral Development Banks Division at Japan’s Ministry of Finance. “We encourage other donors to join us in enabling MIGA to provide guarantees and realize more projects through this important initiative.”
MIGA has been a proactive provider of insurance in Ukraine, issuing more than $215 million in PRI guarantees since the Russian invasion began in February 2022. Through these efforts, MIGA has actively encouraged cross-border investments into Ukraine. Due to the ongoing war, private insurers have been unable to provide political risk insurance in Ukraine. MIGA’s guarantees serve as a key risk mitigation tool, ensuring the continuity of private sector operations and investments for the country’s recovery and reconstruction.
MIGA recently issued a guarantee of $9.1 million to UIPH Ukrainian Industrial Property Holding Limited of Cyprus for its investments in the form of equity and a shareholder loan into the M10 Industrial Park Project against the risk of war and civil disturbance for up to 10 years.
The trust fund is expected to grow to $300 million through contributions from additional donors, which will allow MIGA to provide trade finance guarantees, insurance on bank reserves during the conflict, and political risk insurance to support reconstruction after the war. Norway and Belgium recently contributed to the Fund and the UK has pledged to contribute.
About MIGA
MIGA was created in 1988 as a member of the World Bank to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $76 billion in guarantees across 123 developing countries, supporting more than 1,000 projects. Over the past decade, MIGA’s guarantees have generated more than 156,000 jobs in developing countries.
Contact:
In Washington:
Elizabeth Howton, (202) 458-5922 or ehowton@worldbankgroup.org
For more information, please visit: https://www.miga.org/migas-ukraine-response
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