Organization and Mission
- Subscribed capital: Roughly 20 % are paid-in, either through cash or through non-interest bearing negotiable promissory notes. The additional 80 % are made available by member states to MIGA when needed.
- Retained Earnings
- Accumulated and other comprehensive income
- Net insurance portfolio reserve
MIGA’s has a simple mission:
- invest in the poorest countries (41 % of guarantee volume in FY 2012);
- invest in countries affected by conflict;
- carry out complex and transformational projects;
- do south-south investments (22 % of guarantee volume in FY 2012).
MIGA’s core business is to grant political risk insurance (PRI). It this sector, its guarantees can cover any or all of the below:
- Transfer restriction / inconvertibility: Local currency is either inconvertible or cannot be transferred outside the host country.
- Expropriation: The host government reduces or eliminates ownership or control over the insured investment.
- Breach of contract: The investor cannot obtain or enforce an arbitral or judicial decision recognizing the breach of an obligation by the host country.
- War and civil disturbance
Non-honoring of financial obligation: A sovereign fails to honor an unconditional financial payment obligation or guarantee. Contrary to the breach of contract cover, this insurance does not require a final judicial or arbitral decision.
- Guarantee of an investment of a 20 MUSD investment by Deutsche Bank in its Bangkok branch in Thailand.
- Guarantee of an equity investment of 121 MEUR by EVN to build a 53 MW hydropower plant in in Albania.
- Guarantee of a 250 MUSD shareholder loan by UniCredit to a subsidiary in Croatia.
- 132 MUSD guarantee for the benefit of ProCredit Holding of central bank deposits for mandatory bank reserves carried out by its subsidiaries Bolivia, El Salvador, Georgia, Serbia, and Ukraine.
- Guarantee of an investment in a Coca Cola bottler in Turkmenistan in the amount of 9 MUSD.
- 120 MUSD guarantee for a non-shareholder loan provided by a banking pool for an upstream gas project in Uzbekistan.
- 320 MUSD guarantee to cover the financing of the construction of a metro line in Panama City by a banking pool.
- Guarantee of a 2 MEUR Spanish private equity investment in Morocco and a 4 MEUR Spanish private equity investment in Tunisia.
- Guarantee of a 12 MUSD investment by ADC Financial Services in banking subsidiaries in Botswana.