Source- This post on the World Bank Group Guarantee Platform has been created based on the article “World Bank Group Guarantee Platform Goes Live” published on “Official website of world bank” on 18 July 2024.
Why in the news?
The World Bank Group Guarantee Platform was recently opened for business in 2024. Its purpose is to simplify and streamline the guarantee issuance process.
About the Platform
1. The platform is housed at the Multilateral Investment Guarantee Agency (MIGA).
2. It was initiated in 2024.
3. It combines products and expertise from the World Bank, International Finance Corporation (IFC), and MIGA.
4. Goal: The goal is to increase annual guarantee issuance to $20 billion by 2030. This platform serves as a one-stop shop for all World Bank Group guarantee needs.
Key Features
The platform offers a simplified menu of guarantee options. It provides three types of coverage:
1. Credit Guarantees: These guarantees are for loans to the public or private sectors.
2. Trade Finance Guarantees: These are for trade finance projects involving public entities.
3. Political Risk Insurance: This insurance protects against non-commercial risks in private sector projects or public-private partnerships.
Significance
1. The World Bank Group Guarantees platform consolidates all guarantee products and experts from across the World Bank Group institutions at MIGA.
2. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs.
3. The platform streamlines processes, removes redundancies and provides greater accessibility by de-risking investments in developing countries.
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