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MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Explore different types of political risk insurance guarantees provided to investors and lenders.

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Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Our Impact Dropdown Description

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Our Products Dropdown Description

Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

Projects Dropdown Descriptions

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Synthetic Risk Transfer
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Significant Risk Transfer

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Significant risk transfer (SRT) refers to transactions that allow banks to transfer some potential credit losses associated with loan portfolios to third-party investors and, therefore, to reduce regulatory capital allocated to the relevant loan portfolios. Typically, in an SRT transaction, IFC sells credit protection on a mezzanine (and, in some cases, junior) tranche of a pre-determined reference portfolio on the bank’s balance sheet. 

The structure is typically designed to comply with applicable regulations to achieve regulatory capital relief. SRT transactions are commonly used by European banks, but their popularity is growing in other markets as well. The released capital will be redirected to priority sectors. Therefore, SRT transactions can be an efficient tool to make available risk capital for IFC’s priority sectors.

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