World Bank Group Guarantee Platform

About World Bank Group Guarantee Platform: 

• It is housed at the Multilateral Investment Guarantee Agency (MIGA), brings together products and experts from the World Bank, International Finance Corporation (IFC), and MIGA for simplicity, efficiency, and speed.
• It aims to boost WBG annual guarantee issuance to $20 billion by 2030.
• WBG Guarantees will serve as a one-stop-shop for all WBG guarantee business, providing the best guarantee solutions for clients to meet project needs and development priorities.
• WBG clients can now choose from a simplified market-friendly menu of guarantee options.
• The platform will provide three types of coverages:
  • Credit guarantees for loans to the public or private sector;
  • Trade finance guarantees for trade finance projects involving public entities;
  • Political risk insurance against non-commercial risks for private sector projects or public-private partnerships.
• Significance
  • Initiated in 2024, World Bank Group Guarantees consolidates all guarantee products and experts from across the World Bank Group institutions at MIGA.
  • It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs.
  • The platform streamlines processes, removes redundancies, and provides greater accessibility by de-risking investments in developing countries.

Q1: What is the World Bank?

The WB is an international financial institution that provides loans and grants to the governments of low and middle-income/developing countries for the purpose of pursuing capital projects. It was established along with the IMF at the 1944 Bretton Woods Conference.

Source: World Bank Group Guarantee Platform Goes Live