Philips do Brasil, Ltda

Philips Electronics, N.V. of the Netherlands received a $27 million MIGA guarantee against the risks of expropriation and transfer restriction for its $30 million loan to Philips do Brasil, Ltda., its Brazilian subsidiary. A portion of MIGA's guarantee is reinsured.

Philips do Brasil, Ltda. will use the loan to improve production technologies and expand output at its plant in São José dos Campos, which is the only manufacturer of color picture tubes in Brazil. By raising the plant's annual production from 5to 6 million units, the expansion will help meet the increased demand for televisions throughout Latin America. About 60 percent of the additional production will be sold in Brazil, and rest will be exported. The project enterprise will purchase most goods and services locally. It will add some 300 local workers to its current workforce of about 2,700 employees.