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Press Release

MIGA Teams Up With JBIC to Promote Investment in Developing Countries

<p><strong>MIGA Teams Up With JBIC to Promote Investment in Developing Countries</strong><br>(<a title="Japanese" href="http&#58;//www.miga.org/documents/PR_JBIC-MIGA09_Japanese.pdf&quot; target="_blank">Japanese</a>)</p>
<p>Istanbul, October 7, 2009— The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, and The Japan Bank for International Cooperation (JBIC), the international arm of Japan Finance Corporation, will cooperate to promote private sector investment in developing countries through a joint Memorandum of Understanding (MoU).</p>
<p>The MoU was signed in Istanbul on the sidelines of the 2009 Annual Meetings of the World Bank Group and International Monetary Fund by World Bank Group President Robert B. Zoellick and by JBIC President and CEO Hiroshi Watanabe.</p>
<p>The aim of the MoU is to facilitate cooperation between MIGA and JBIC in promoting private sector participation in infrastructure in developing countries and mobilizing private capital flows, and ensuring general cooperation in specific projects where both MIGA and JBIC are involved. This partnership will enable the two institutions to work closely on, among other things, political (or non-commercial) risks in developing countries, joint policy dialogue with those countries on the relevant topics and claims cooperation.</p>
<p>Zoellick welcomed the expanding relationship between MIGA and JBIC. “Ensuring close and effective cooperation between international financial institutions has to be a top priority in this period of economic turmoil.&#160; JBIC and MIGA can provide mutual assistance to promote private investment and infrastructure in developing countries, to create jobs and future growth opportunities.”</p>
<p>Watanabe said, “This MoU will enhance closer and more effective collaboration between MIGA/World Bank Group and JBIC in facilitating private sector participation in and promoting private capital flow to developing countries. JBIC is committed to supporting Japanese firms’ overseas activities by utilizing its risk-controlling and taking functions and its global network further strengthened by this MoU.”&#160;&#160;</p>
<p>MIGA provides insurance against political risks for eligible investments made by investors from a MIGA member country into a developing member country. The types of investments the agency can cover include equity, shareholder loans, certain non shareholder loans, certain shareholder loan guarantees, management contracts, asset securitizations, capital market bond issues, and leasing, services, franchising and licensing agreements.&#160; Projects supported by MIGA create jobs, provide water, electricity, and other basic infrastructure, rebuild collapsed financial systems, generate tax revenues, transfer skills and technological know-how, and help countries tap natural resources in an environmentally sustainable way.</p>
<p>JBIC provides a broad range of support (including direct loans on a limited recourse basis, political risk guarantees and equity investments) for overseas business development of Japanese firms, while developing cooperative partnerships with multilateral development finance institutions such as MIGA.</p>
<p>MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment into emerging economies to support economic growth, reduce poverty, and improve people’s lives. MIGA fulfills this mandate by offering political risk insurance (guarantees) to investors and lenders, covering risks including expropriation, breach of contract, non-honoring of sovereign financial obligations, currency transfer restriction, and war and civil disturbance. MIGA works actively with investors and host countries, helping to resolve disputes before they reach a claims situation. The agency also offers technical assistance to its member countries and provides free online investment information services. Since its inception, MIGA has supported 600 projects in 100 developing countries, totaling $21 billion in coverage. MIGA’s gross exposure currently stands at $7.3 billion. For more information, visit <a href="http&#58;//www.miga.org/">www.miga.org</a>.</p&gt;
<p>JBIC is the international wing of the Japan Finance Corporation (JFC), Japan’s policy-based financing institution established on October 1, 2008. It succeeded International Financial Operations of former JBIC and will continue to use the name of JBIC to maintain international trust and confidence it has gained. JBIC provides policy-based finance with a mission to contribute to the sound development of the Japanese and international economy.<br>
For more information, visit <a href="http&#58;//www.jbic.go.jp/">www.jbic.go.jp</a>.</p&gt;
<p>Toru Aguin or Maki Yoshida<br>
Press and External Affairs Division,<br>
Corporate Planning Department, JBIC<br>
Phone&#58; +81 3 5218-3100<br>
Fax&#58; +81 3 5218-3955</p>
<p>Mallory Saleson, MIGA<br>
Phone&#58; +1 202 473-0844<br>
E-mail&#58; <a href="mailto&#58;msaleson@worldbank.org">msaleson@worldbank.org</a></p>
<p>Rebecca Post, MIGA<br>
Tel&#58; +1-202-473-1964<br>
E-mail&#58; <a href="mailto&#58;rpost@worldbank.org">rpost@worldbank.org</a><br></p>