MIGA’s Post

Today, the World Bank Group launched a single platform that unifies 20 guarantee products, revolutionizing risk management for private investors in emerging markets. This streamlined approach not only simplifies solutions but also introduces innovative guarantees to tackle global challenges like poverty, climate change, and food insecurity. By mobilizing private capital, the World Bank Group aims to scale the guarantee business to $20 billion or more by 2030. This is a major step towards a more sustainable and equitable future for all. #WorldBank #MIGA #guarantee #emergingmarkets #investment #poverty #climatechange #foodsecurity

A new Q1 publication in Borsa Istanbul Review: 'The influence of foreign direct investment on banking stability in a dual banking system during the COVID-19 pandemic and the global financial crisis". Special thanks to my coauthors. https://lnkd.in/dQwvsCpP

ADB's program aimed to strengthen fiscal and debt management, improve financial market infrastructure, diversify instruments and investors, and enhance corporate transparency. The #evaluation report validates the program's effectiveness in achieving this. #financialmarkets #fiscalpolicy https://lnkd.in/g3tk2fWG

The World Bank Group (WBG) launched the guarantee platform yesterday, consolidating all guarantee products and experts from across the World Bank Group institutions (World Bank and IFC - International Finance Corporation) at MIGA. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs. The platform will provide three types of coverage: credit guarantees for loans to the public or private sector, trade finance guarantees for trade finance projects involving public entities, and political risk insurance against non-commercial risks for private sector projects or public-private partnerships. It aims to boost WBG annual guarantee issuance to $20 billion by 2030. Read more> https://lnkd.in/evPnzTH4 #Guarantees

How can multilateral development banks facilitate the connection between global insurance companies’ credit capacity and development impact, with a return on investment? In a new blog, IFC’s John Gandolfo, Vice President and Treasurer, Treasury & Mobilization, and Mohamed Gouled, Vice President of Industries, explain how global insurance companies can insure loans originated by multilateral development banks in developing countries to unlock greater private sector investment. Learn more: http://wrld.bg/LVkM50QgMfV #creditinsurance #developmentfinance #MDBs #insurancecompanies #impactinvesting #developmentimpact #privatesector #privatecapital

In response to the G20’s calls for Multilateral Development Banks (MDBs) to become better, bolder, and bigger, I’m pleased to share that the Asian Development Bank (ADB) has published a new Report on Callable Capital that provides, for the first time, greater clarity and transparency on the value of this instrument. Callable capital is capital that is subscribed to by shareholders that has not been paid-in. Unique to MDBs, it's a commitment from each shareholder to step in with additional capital, but only under extreme circumstances to avoid defaulting on bond or guarantee obligations. Although it’s never been used by any MDB before, the big takeaway is that ADB’s shareholders have expressed their readiness to respond positively to a call, if the need arises. The analysis sheds light on the robustness of ADB's financial framework and will help rating agencies to better assess the value of callable capital to MDBs. This is part of our ongoing efforts to free up more funding maintaining our top-notch AAA credit rating. I am incredibly proud of ADB's team for pushing the envelope to make this happen and thank Board Members for their great support. Read the Report https://lnkd.in/dd_7T_Tc News release https://lnkd.in/dQftBHJQ David Le Brun, Luca Di Mario, Nicholas McBride

🟢SDRs are providing a boost for vulnerable countries, but greater support is encouraged to strengthen them. ⁉️How can more countries support African Development Bank Group hybrid capital instrument to leverage #SDRs and raise 3-4 times more in highly concessional loans. David McNair explains. 📺Watch the full debate https://lnkd.in/dh62NbHe

ADB has just published an analysis on its callable capital, which, we hope, will be useful to stakeholders and credit rating agencies to better understand the value of this instrument. Unique to MDBs, callable capital is a commitment from each shareholder to make additional capital available to an institution, but only in the event additional capital is required for an institution to avoid defaulting on its borrowings or guarantees. No major MDB has ever had to use this financial instrument, and there has always been some unclarity about its use. The report results not only demonstrate ADB’s strong financial footing but also enhance stakeholders’ understanding of ADB’s financial policies, further building trust in ADB’s capacity to drive meaningful change across the region. Such analysis/initiative is also in line with G20 and shareholders’ calls for MDBs to become better, bolder, and bigger, again demonstrating ADB's continuous commitment to evolve as key multilateral development bank. Great work and coordination across ADB and with our Board Members. David Le Brun Nicholas McBride Roberta Casali https://lnkd.in/dFujrH3g

Risk Control's new studies show that #WorldBank reform could unlock billions of additional financing for developing countries. The first study analyses the ratings and capital adequacy of #IBRD and #IDA. Specifically, we quantify the headroom available to these organisations to expand development lending. The second study, which builds on and interprets, in a non-technical way, the findings of the first study, assesses the implications of the #G20 Independent MDB CAF Panel for IBRD and IDA. The studies are available on our website:  https://lnkd.in/eqmWRWwM #WorldBank #IBRD #IDA #MDB #lending