IFC, MIGA collaborate to boost investment in fragile and conflict-affected areas

The International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) has announced a collaboration between the two to mobilize investment into fragile and conflict-affected areas of the world.

In a joint statement June 22, 2012, both said the collaboration will enable eligible commercial lenders participating in IFC B-loan syndications to obtain MIGA’s political risk insurance for war and civil disturbance.

“Lenders participating in the B-loan programme 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,” they said as about 1.5 billion people live in fragile and conflict-affected areas.

This collaboration was 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.

By Ekow Quandzie