MIGA, he says, has sponsored and extended similar facilities to cover local investments in conflict zones like Afghanistan, West Bank and Gaza, Bosnia and Herzegovina and Kosovo.
The crux of the proposal is around 40 million dollar guarantee facility funded by the World Bank and other donors, who will leverage the insurance capacity of local investors.
MIGA can cover expansion of new investments, debt as well as equity and business interruption.
If there is a default of a bank loan, payments can be made out of the fund.
MIGA was in a position to cover loan portfolios. A cluster of loans could be grouped into one major loan. MIGA can cover both existing and future loans but only against political risks, Perera s