Viet Nam: MIGA's First Guarantee Issued

Viet Nam: MIGA's First Guarantee Issued

Washington, D.C., June 15, 1999 — The Multilateral Investment Guarantee Agency (MIGA) issued its first Contract of Guarantee in Viet Nam to Citibank, N.A. (Citibank). It was also the 50th contract issued in fiscal year 1995 (ending June 30, 1995). Citibank invested US$15.0 million to open a branch bank, Citibank, N.A. (Viet Nam), in Hanoi. The branch will focus its banking services on trade finance, structured trade, foreign exchange services, project advisory, and cash management. MIGA's guarantee of US$13.5 million will cover Citibank's investment against the risks of Expropriation, Transfer Restriction, and War and Civil Disturbance.

Since Viet Nam joined MIGA in October 1994, MIGA has received more than 30 applications for coverage of potential foreign investments in the country totaling hundreds of millions of dollars. MIGA is actively underwriting a number of other prospective investments in Viet Nam and expects to issue additional coverage in the country this calendar year.

During the current fiscal year, MIGA guarantees were also issued for the first time for investments in Costa Rica, Ecuador, Honduras, Morocco, the Philippines, South Africa, and Tunisia. MIGA has facilitated over US$1 billion in foreign direct investment in 18 developing member countries in the fiscal year to date.

MIGA country membership also rose during the fiscal year. With seven additional countries (Benin, Equatorial Guinea, Mozambique, The Bahamas, Lebanon, Ukraine, and Viet Nam), membership has now increased to 128 (19 industrialized and 109 developing countries). An additional 24 countries are in the process of fulfilling membership requirements.