main navigation menu
World Bank building
About

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

Learn More
History Member Countries Board of Directors Careers Frequently Asked Questions Political Risk Insurance Annual Reports MIGA Convention
Young woman bending down to tending to her outside chores
What We Do

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

Learn More
Our Products Our Process Small Investment Program Private Equity Fund Insurance Dispute Resolution Broker Information Reinsurance Trust Funds
Hyundai building
Projects

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

Search Projects
Access to Information Environmental & Social Sustainability Integrity
Hands husking peas into a basket full of peas
Our Impact

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

Learn More
Climate Change Fragile and Conflict-affected Settings Low-Income Countries (IDA) Sustainable Development Goals Water Working with Investors
Get Coverage Contact News & Events Resources Newsletter Careers
Subscribe to Our Monthly Newsletter
x
Contents
Languages
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.

Our Non-Honoring of Financial Obligations coverage provides protection against losses resulting from a failure of a sovereign, sub-sovereign, or state-owned enterprise to make a payment when due under an unconditional financial payment obligation or guarantee related to an eligible investment. It does not require the investor to obtain an arbitral award. This coverage is applicable in situations when a financial payment obligation is unconditional and not subject to defenses. Compensation is based on the insured outstanding principal and any accrued and unpaid interest.