Largest Contract Issued by MIGA: BNP - Dresdner Bank in Russia
Washington, D.C., July 1, 1998 — The Multilateral Investment Guarantee Agency (MIGA) issued its largest guarantee to date, the Agency announced today. The US$90 million guarantee contract covers a shareholder loan by Banque Nationale de Paris (BNP), to expand its branch in Russia, BNP-Dresdner (Rossija). The project will increase BNP's banking operations in Russia and add to the pool of capital available to companies in the country. MIGA's guarantee insures BNP's investment against the risks of Transfer Restriction and Expropriation of funds.
The MIGA Contract was made possible by reinsurance from the Compagnie Française d'Assurance pour le Commerce Extérieur (Coface), an insurance company that provides export credit and long-term investment insurance on behalf of the Government of France. The Contract is MIGA's first reinsurance agreement with Coface.
Mr. Roger Pruneau, MIGA's Vice President of Guarantees, commented: "This close cooperation between MIGA and Coface demonstrates some of the significant benefits of collaboration among investment insurers; larger amounts of coverage for longer terms are now available to prospective investors in emerging markets and transition economies."