Multilateral Investment Guarantee Agency

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The Multilateral Investment Guarantee Agency (MIGA) is a member of the World Bank group. It was established to promote foreign direct investment into developing countries. MIGA was founded in 1988 with a capital base of $1 billion and is headquartered in Washington, D.C.

MIGA promotes foreign direct investment into developing countries by insuring investors against political risk, advising governments on attracting investment, sharing information through on-line investment information services, and mediating disputes between investors and governments. MIGA's strength compared to private providers of political risk insurance is its membership of the World Bank Group, which allows it to intervene with host governments to resolve claims before they are filed.

[edit] MIGA's Business

MIGA provides guarantees against noncommercial risks to protect cross-border investment in developing member countries. Guarantees protect investors against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance, and Breach of Contract (for contracts between the investor/project enterprise and the authorities of the host country). These coverages may be purchased individually or in combination.

MIGA can cover only new investments. These include:

new, greenfield investments;
new investment contributions associated with the expansion, modernization, or financial restructuring of existing projects; and
acquisitions involving privatization of state enterprises.

Unlike other insurers, MIGA is backed by the World Bank Group and its member countries.

MIGA's President is Bob Zoellick, in his capacity as President of the World Bank Group. Yukiko Omura is Executive Vice President; James Bond occupies the position of Chief Operating Officer; Edie Quintrell is Director of Operations; Peter Cleary is General Counsel; Kevin Lu is Acting CFO; and Frank Lysy is Chief Economist.