Institution details

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MIGA - Multilateral Investment Guarantee Agency (MIGA)

Key facts

  • Established in 1988
  • Ownership: Public

Latest update: 03/12/2021

Products

  • Political risk insurance
  • Credit enhancement
  • Small Investment Program (SIP)

Political Risk Insurance

  • Currency inconvertibility and transfer restriction cover
    - Currency depreciation is not covered
    - In the event of a claim, MIGA pays compensation in the currency specified in the contract of the guarantee
  • Expropriation cover
    - In addition to outright nationalization and confiscation, “creeping expropriation”—a series of acts that, over time, have an expropriatory effect—is also covered
    - Coverage is available on a limited basis for partial expropriation (e.g., confiscation of funds or tangible assets)
  • War, terrorism, and civil disturbance cover
    - This coverage encompasses not only violence in the host country directed against a host country government, but also against foreign governments or foreign investments, including the investor’s government or nationality"
  • Breach of contract cover
    - Breach of contract coverage may be extended to the contractual obligations of state-owned enterprises in certain circumstances

Credit Enhancement

  • Non-honouring of financial obligations
    - Availability of this product is limited to governments/state-owned enterprises (SOEs) with satisfactory credit ratings
    - Availability period: Up to 15 years (20 in some cases)
    - Claim determination and payment are subject to defined waiting periods
    - Coverage: Up to 95 percent of principal and interest

Small Investment Program (SIP)

  • Designed to facilitate investment into SMEs involved in the finance, agribusiness, manufacturing, and services sectors
  • SIP offers:
    - Coverage up to USD 10 million (the actual size of the investment may be bigger)
    - A guarantee package covering currency transfer restriction, expropriation, and war, terrorism, and civil disturbance
    - A quick approval process
  • In order to qualify, the project enterprise must fulfill at least two of the following criteria
    - No more than 300 employees
    - Total assets not more than USD 15 million
    - Total annual sales not more than USD 15 million


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