In Washington, D.C.:
Alexandra Klopfer (IFC)
Phone: (202) 473-4645
E-mail: aklopfer@ifc.org
Mallory Saleson (MIGA)
Phone: (202) 473-0844
E-mail: msaleson@worldbank.org
Rebecca Post (MIGA)
Phone: (202) 473-1964
E-mail: rpost@worldbank.org
World Bank Group Agencies Collaborate to Boost Investment in Fragile and
Conflict-Affected Areas
Washington, D.C., June 22, 2012—The International Finance Corporation
(IFC) and the Multilateral Investment Guarantee Agency (MIGA), members
of the World Bank Group, are collaborating to mobilize investment into
fragile and conflict-affected areas of the world, enabling eligible commercial
lenders participating in IFC B-loan syndications to obtain MIGA’s political
risk insurance for war and civil disturbance.
IFC’s B-loan program is the oldest syndicated lending program among multilateral
development banks and an important tool for mobilizing capital to serve
development needs. Lenders participating in the B-loan program will now
be able to seek the added protection of MIGA’s coverage in the event of
a default related to war or civil disturbance.
About 1.5 billion people live in fragile and conflict-affected areas. Mobilizing
investment into these areas is a priority for IFC and MIGA. IFC provides
immediate and long-term support to rebuild the private sector and promote
entrepreneurship and MIGA offers coverage in countries where other insurers
are often not willing or unable to go.
“Conflict and instability magnify the challenges of development in many
countries, creating an urgent need for jobs and investment,” said IFC
EVP and CEO Lars Thunell. “Our collaboration with MIGA will benefit IFC
clients in these areas, mobilizing greater investment to support private
sector development where it is needed most.”
MIGA EVP Izumi Kobayashi said: “We’re pleased to be able to offer war
and civil disturbance coverage to IFC’s B-loan participants. This will
give lenders more protection in challenging environments and encourage
private sector investment that leads to sustainable development and growth.”
This collaboration is occurring under the IFC/MIGA Business Development
Partnership, which encourages the institutions to work together for the
benefit of World Bank Group clients, particularly in member countries of
the World Bank’s fund for the poorest—the International Development Association,
or IDA—and in frontier regions.
In particular, the partnership seeks to leverage complementary products
offered by each institution to more effectively advance private sector
development in challenging markets.
About IFC
IFC, a member of the World Bank Group is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,
visit www.ifc.org.
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About MIGA
MIGA was created in 1988 as a member of the World Bank Group to promote
foreign direct investment into emerging economies to support economic growth,
reduce poverty, and improve people’s lives. MIGA fulfills this mandate
by offering political risk insurance (guarantees) to investors and lenders,
covering risks including expropriation, breach of contract, currency transfer
restriction, war and civil disturbance, and non-honoring of sovereign financial
obligations. For more information, visit www.miga.org
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