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Political Risk Insurance
Based on its experience and reputation for advising and helping arrange project finance for private sector clients investing in emerging markets, in August 2009 Muszkat Consultants was appointed by the Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, to be one of MIGA’s five exclusive agents worldwide and actively advise investors on political risk insurance.
More than other providers of political risk insurance, the Multilateral
Investment Guarantee Agency, MIGA – using its status as a member of the
World Bank Group – can act as a deterrent to disruptive action by
governments in emerging countries. MIGA can insure new investments and
expansions, as well as turn key projects with a life greater than 3
Currency transfer restrictions
War and civil disturbance
Breach of contract
Non-honoring of sovereign financial obligations
In addition to protecting investments from political risk, MIGA’s political risk insurance can also help:
disputes: MIGA is in a strong position to resolve disputes that might
arise. MIGA has supported close to 600
Improving Terms and Conditions for Investors/Lenders
Accessing funding: MIGA guarantees help investors obtain project finance from banks
borrowing costs: MIGA - guaranteed loans may help reduce risk-capital
ratings of projects, leading to lower
tenors: MIGA can provide insurance coverage for up to 15 years (in some
cases 20), thereby increasing the
As agents, we provide a variety of services and benefits including:
Pre-application guidance and completion of preliminary and definitive applications based on the information received
Facilitate discussions with MIGA:
Given our knowledge of MIGA's requirements,
we lead discussions with MIGA and
multiple applications: when multiple investors and lenders are involved,
we will coordinate information and
No additional cost for our services since guarantee premiums are the same as for direct applications to MIGA
MIGA operational strategy plays in the marketplace. MIGA’s strategy focuses on specific areas where it can make the greatest difference, like: complex deals in infrastructure and extractive industries, especially those involving project finance and environmental and social considerations.
MIGA can provide 95 percent insurance coverage for commercial banks and shareholder debt financing, enhancing its ability to play an important role in international project finance.
The political risk insurance services provided by Muszkat Consultants as MIGA Agent are free of charge to clients.