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Tuesday April 16, 2024

WB to streamline loan, investment guarantees with $20bn annual goal

By News Desk
February 29, 2024
A person enters the building of the Washington-based global development lender, The World Bank Group, in Washington. — AFP/File
A person enters the building of the Washington-based global development lender, The World Bank Group, in Washington. — AFP/File

WASHINGTON: The World Bank Group said on Wednesday it would consolidate its loan and investment guarantee structure as part of its goal to triple its annual guarantees to $20 billion by 2030 to boost private renewable energy investments in developing countries.

The reforms, announced on the sidelines of a G20 finance leaders meeting in Sao Paulo, Brazil, would move all of the guarantee experts from across the World Bank's business units into a single platform. The bank said the changes, to start on July 1, would provide "a seamless experience for clients and easier access to the full suite of guarantees."

The World Bank Group currently guarantees about $6.8 billion worth of loans and investment contracts annually across its business units, including the Multilateral Investment Guarantee Agency (MIGA), the private-sector International Finance Corp andcits main International Bank for Reconstruction and Development lending arm. The guarantees include insurance for credit risks, political risks, breach of contract, currency restrictions and other impediments to private investment in developing countries.