World Bank's MIGA Joins Forces with National Greek Insurer: Call for increased Greek investment into emerging economies
World Bank's MIGA Joins Forces with National Greek Insurer: Call for increased Greek investment into emerging economies
ATHENS, June 7, 2001 — A new partnership agreement announced today between the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, and the Greek Export Credit Insurance Organization (ECIO) aims to spur investment into emerging economies by offering increased insurance coverage and security to Greek investors.
The partnership, the first between the two organizations, calls for the agencies to work together to identify possible projects for guarantee coverage, and provide co-insurance and reinsurance for projects guaranteed by one of the entities.
"This agreement is key to our efforts to provide far-reaching support, in partnership with public and private insurers, to those seeking to invest in developing countries," says MIGA's Executive Vice President Motomichi Ikawa. "I believe this partnership will help raise the awareness of Greek companies of the many untapped investment opportunities in emerging economies, especially in Southeastern Europe."
According to Trade with Greece magazine, outstanding Greek direct investment in Central and Southeastern Europe currently totals about $1.4 billion. "We hope this risk-sharing collaboration will significantly contribute to the promotion of Greek investments and joint ventures in developing countries," says ECIO's President and General Manager, Christina Sakellaridis.
Speaking at the partnership launch in Athens, MIGA's Director for Europe, Christophe Bellinger, highlighted the agency's work with Greek investors and in Europe and Central Asia. He noted that:
- MIGA has issued more than 120 guarantees for projects in the region, with total coverage exceeding $1.9 billion, or 22 percent of its portfolio. Since 1997, MIGA has offered $28.2 million in guarantee coverage for five projects by Greek investors.
- MIGA-insured projects in the region encompass a broad range of sectors, including banking, manufacturing, agribusiness, telecommunications, and others.
- Contracts vary in size, from $740,000 to expand a yarn company in Slovakia to $90 million for a commercial real estate project in the Czech Republic.
- MIGA's focus on small- and medium-sized enterprises (SME) has resulted in 75 guarantees, 40 percent of which are in Africa, and 25 percent in Eastern Europe and the former Soviet Union. Commercial banks and other financial intermediaries that provide funding for local SMEs account for the majority of MIGA's SME support. The agency is currently investigating ways to make its guarantee service more accessible for SME companies investing abroad.
Bellinger also noted that a MIGA team will be in Thessaloniki, Greece, on June 18-20, 2001, to hold a seminar on foreign direct investment and lending into emerging economies. The event will target investors and lenders focusing on Southeastern Europe. Staff will also be holding individual meetings with investors and other interested parties.
For information:
Christophe Bellinger, cbellinger@worldbank.org,
t. 33.0.14.69.3275 (France)
Clearchos Efstratoglou, efstratoglou@oaep.gr,
t. 00.301.3310017 (Greece)
Angela Gentile, agentile@worldbank.org,
t. 202.473.3509 (US)