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Initiated in 2024, WBG Guarantees consolidates all guarantee products and experts from across the WBG institutions at Multilateral Investment Guarantee Agency (MIGA).
- WB guarantees are provided to private lenders, for infrastructure financing, where the demand for debt funding is large, political and sovereign risks are significant, and longdated financing critical to a project’s viability.
- Previous to the launch of the platform, the WBG offered 20 guarantee solutions each with different processes, rules, and standards that impeded clients access.
WBG GP
- Aims to boost WBG annual guarantee issuance to $20 billion by 2030.
- The WBG issued approximately $10.3 billion in new guarantees using products from the platform in 2024.
- Provides three types of coverages:
- Credit guarantees for loans to the public or private sector;
- Trade finance guarantees;
- Political risk insurance against non-commercial risks for private sector projects or public-private partnerships.
Significance
- Simplified market-friendly menu of guarantee options offering multiple options to WB clients.
- Streamlines processes, removes redundancies, and provides greater accessibility by de-risking investments in developing countries.
- Prioritizing high-impact projects and facilitating growth.
- Drive sustainable development and inclusive growth through innovative financing.
About WB GroupGlobal partnership of five institutions. India is a part of the first four (i.e., not a part of ICSID).
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