Miga(multilateral investment garentee agency)

8/14/2019 Miga(multilateral investment garentee agency)

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ECONOMICSECONOMICS

PRESENTATIONPRESENTATION



World Bank Group• Established on 27th December, 1945

• Headquartered in Washington, D.C.

• Vital source of financial and technicalassistance to developing countries around theworld.

• provide low-interest loans, interest-free creditsand grants to developing countries.



The World Bank's activities are focused ondeveloping countries, in fields such as:

• Human development

• Agriculture and Rural development

• Environmental protection

• Infrastructure

• Governance



• International Bank for Reconstruction andDevelopment (IBRD)

• International Development Association (IDA)

• International Finance Corporation (IFC)

• Multilateral Investment Guarantee Agency(MIGA)

• International Centre for Settlement of Investment Disputes (ICSID)



• One of the 5 agencies of the World Bankgroup.

• Founded in 1988.

• Capital base of $1 billion.

• Headquarters at Washington D.C.



To promote Foreign Direct Investment (FDI) intodeveloping countries to help support economic

growth, reduce poverty, and improve people's lives.



MIGA's strength compared to privateproviders of political risk insurance is

its membership of the World Bank Group, which allows it to intervenewith host governments to resolveclaims before they are filed.



• Insuring investors and lenders against political risk,

• Advising governments on attracting investment,

• Sharing information through on-line investmentinformation services

• Mediating disputes between investors andgovernments.

• Covering risks including breach of contract, currencytransfer restriction, & war and civil disturbance.



MIGA’s strategies focus on

specific areas:

1.Infrastructure development

2.Frontier markets

3.Investment into conflict-affected countries

4.Investment between developing countries



• MIGA helps investors and lenders dealwith political risks by insuring projectsagainst losses relating to:

1.Currency transfer restrictions

2.Expropriation

3.War and civil disturbance

4.Breach of contract

5.Non-honoring of sovereign financial obligations



Currency Inconvertibility & Transfer Restriction

• MIGA protects againstlosses arising from aninvestor’s inability tolegally convert local

currency into foreignexchange and transferlocal currency or foreignexchange outside the

country due togovernment action orfailure to act.



• Protects against losses arising fromgovernment actions that may reduce

or eliminate ownership of, controlover, or rights to the insuredinvestment.



MIGA protects against• Loss from,•

Damage to, or• The destruction of tangible assets or total

business interruption caused bypolitically motivated acts of war or civildisturbance in the country, includingRevolution, Insurrection, Sabotage, and Terrorism



• MIGA protects against losses arisingfrom the government’s breach or

repudiation of a contract with theinvestor.



• Protects against losses resulting froma government’s failure to make a

payment when due under anunconditional financial paymentobligation or guarantee given infavor of a project that otherwisemeets all of MIGA’s normalrequirements.



• Deterring harmful actions

• Resolving disputes

• Accessing funding

• Lowering borrowing costs• Increasing tenors

• Providing extensive country knowledge

• Providing environmental and socialexpertise

Miga(multilateral investment garentee agency)

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