Mexico Joins the Multilateral Investment Guarantee Agency

Mexico Joins the Multilateral Investment Guarantee Agency
(Spanish)

WASHINGTON, July 8, 2009—The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance arm of the World Bank Group, announced today that Mexico has fulfilled all of its membership requirements to become MIGA’s 175th member.

Mexico’s membership in MIGA means that foreign investments going into Mexico are eligible for guarantee coverage from MIGA, which protects investments against the risks of transfer restriction, expropriation, breach of contract, non-honoring of sovereign financial obligations, and war and civil disturbance. Investors from Mexico going into other developing countries may also receive coverage for their investments from MIGA.

“We are pleased that Mexico has reached this important milestone” said Izumi Kobayashi, MIGA’s Executive Vice President. “Not only will MIGA’s membership benefit investors going into Mexico, but Mexico is gaining stature as a very important source of outward investment.”

According to UNCTAD’s World Investment Report 2008, Mexico’s outward foreign direct investment flows surpassed $8 billion in 2007. “We hope that the products provided by MIGA will help investors from Mexico sustain such high levels of investment and expand into those countries and sectors where the need is most pronounced, and therefore the risks can be high,” adds Kobayashi. “Infrastructure investment, in particular, is needed in the Latin America and Caribbean region and this is a sector where MIGA can offer a range of risk-mitigation products.”

For information:
Mallory Saleson, msaleson@worldbank.org, 202.473.0844
Rebecca Post, rpost@worldbank.org 202.473.1964
Dmitro Derkatch, dderkatch@worldbank.org 202.458.2097