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

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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.

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

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

Ukraine, Egypt, Arab Republic of and Other countries yet to be identified

MIGA-EBRD Trade Finance Facility

$200 million
Trade Finance
Summary of Proposed Guarantee
Proposed
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Project Description

This summary is for potential MIGA guarantees to be issued to the European Bank for Reconstruction and Development (EBRD) to support trade transactions conducted through State-Owned Banks (SOBs) in emerging markets and developing economies (EMDEs). MIGA would issue Trade Finance Guarantees (TFG) for up to US$200 million over a period of up to 6 years (with an initial 3-year term), against the risk of non-payment by SOBs to EBRD with respect to EBRD guarantees issued under its Trade Facilitation Programme (TFP). The partnership between MIGA and EBRD was Board approved on December 22, 2022.

MIGA considers the issuance of TFGs to the following SOBs:

Host Country

State-Owned Banks

Trade Finance Guarantee

(US$ million)

Date SPG Disclosure

Ukraine

(i) The Public Joint-Stock Company Joint Stock Bank “Ukrgasbank” (JSB “Ukrgasbank”).

(ii) “The State Export-Import Bank of Ukraine” Joint Stock Company (“Ukreximbank” JSC).

(iii) Joint Stock Company “State Savings Bank of Ukraine” (JSC “Oschadbank”).

Up to US$10 million

02/10/2023

Egypt

(i) National Bank of Egypt S.A.E.

(ii) Banque Misr
Up to US$100 million 05/30/2023

 

Environmental Categorization

The MIGA-covered facility will support short-term trade transactions in EMDEs. These transactions pose minimal environmental and social (E&S) risks and impacts and as such the project has been categorized as ‘FI-3’ under MIGA’s Policy on Environmental and Social Sustainability (2013).  The applicable E&S requirement for this project is the MIGA Exclusion List.

EBRD’s TFP includes an E&S risk management process for the SOBs and underlying transactions. The due diligence process includes an assessment of each SOB’s E&S process and labor practices.  EBRD will be responsible for screening against MIGA’s Exclusion List.

Development Impact

MIGA interventions will contribute to positive development impact through the facilitation of trade. It has been widely acknowledged that trade is a driver of economic productivity and wage growth. Trade supports economic activity and employment directly through the generation of income and liquidity on the back of exports, as well as indirectly by facilitating investment (importation of capital goods and technology), importation of critical goods and goods required for basic economic function, as well as importation of intermediate and consumer goods. Through partnering with EBRD, MIGA will facilitate needed trade finance at a time of rising economic pressure and heightened geopolitical risks affecting trade, supply chain and critical imports for countries. 

 

 

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