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MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Explore different types of political risk insurance guarantees provided to investors and lenders.

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Our Impact Dropdown Description

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Our Products Dropdown Description

Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

Projects Dropdown Descriptions

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

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Product

Non-Honoring of Financial Obligations

Protection against losses from a failure by a sovereign, sub-sovereign, or state-owned enterprise to make a payment when due
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MIGA’s Non-Honoring of Financial Obligations (NHFO) coverage provides credit enhancement in transactions involving sovereign and sub-sovereign entities, as well as state-owned enterprises (SOEs). The primary beneficiaries that can benefit from this cover are commercial lenders that provide loans to these public sector entities for infrastructure and other productive investments.

 

Non-Honoring of Sovereign Financial Obligations

Non-Honoring of Sovereign Financial Obligations coverage protects against losses resulting from a government's failure to make a payment when due under an unconditional and irrevocable financial payment obligation or guarantee given in favor of a project that otherwise meets all of MIGA’s normal requirements. It does not require the investor to obtain an arbitral award. This coverage is applicable in situations when a sovereign’s financial payment obligation is unconditional and not subject to defenses. Compensation is based on the amount that the guarantee holder is entitled to recover from the host government pursuant to the terms of the obligation.

 

Non-Honoring of Financial Obligations by a State-Owned Enterprise

Non-Honoring of Financial Obligations by a State-Owned Enterprise coverage protects against losses resulting from a state-owned enterprise’s failure to make a payment when due under an unconditional and irrevocable financial payment obligation or guarantee given in favor of a project that otherwise meets all of MIGA’s normal requirements. It does not require the investor to obtain an arbitral award. This coverage is applicable in situations where the financial payment obligation is unconditional and not subject to defenses. Compensation is based on the amount that the guarantee holder is entitled to recover from the state-owned enterprise pursuant to the terms of the obligation.

 

 

 

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