World Bank Agency Makes Presentation on Political Risk Insurance

World Bank Agency Makes Presentation on Political Risk Insurance

(Portuguese-language press release)

CURITIBA, BRAZIL, March 23, 2006—Business leaders and senior staff of the Multilateral Investment Guarantee Agency, a member of the World Bank Group, today discussed the benefits of insurance against non-commercial risks for Brazilian companies interested in investing in emerging markets.

"MIGA's insurance is designed to protect investments against potential political risks and to give confidence to investors," said Keith Martin, Sr. Marketing Specialist of MIGA.

In addition to covering new projects, MIGA can also insure investments associated with expansions, modernizations, and financial restructurings of existing projects.  "In keeping with the objective of supporting economic growth and development, the projects should be financially and economically viable, environmentally sound, and in conformity with the development objectives of the host country," Martin explained.  Over the past three years, MIGA has supported more than 100 projects.

Nabil Fawaz, head of the agency's Agribusiness, Manufacturing and Services operations, explained that the coverage protects against the risks of breach of contract, war, civil disturbance, and terrorism, currency transfer restrictions, and expropriation.  "MIGA's involvement in a project offers comfort to investors and lenders, protecting investments against harmful government actions, mediating disputes at the first sign of trouble to keep investments going, and ensuring prompt payment of claims," he said, highlighting the fact that the businesses covered by the agency have better access to financing for the project, lower borrowing costs, and longer loan tenors.

The meeting was organized by the Federation of Industries of Paraná (FIEP) System, through CIN, the International Business Center, as part of its mandate to disseminate information related to the interests of the people of Paraná.  The MIGA staff visited companies that are already investing in the international market and met individually with interested business leaders.  "We also helped businesspeople identify investment opportunities and explained how Paraná can attract [more] investments," Martin said, referring to MIGA's online services and technical assistance in investment promotion.

For information
Angie Gentile, agentile@worldbank.org, 202.473.3509
Farah Hussain, fhussain@worldbank.org, 202.473.2540