Multilateral Investment Guarantee Agency (MIGA)
MIGA is
an autonomous division of the World Bank, an international financial
institution that provides loans to developing countries, as part of its
commitment to promote foreign investment, international trade and facilitate
capital investment. Founded in 1988, MIGA is today a multilateral development
agency comprising 175 member countries and promoting the flow of foreign direct
investment (FDI) to developing countries by offering guarantees to investments in
socially and environmentally sound projects. It partners with other global
organizations, donors, and insurance providers to offer a comprehensive array
of services to investors.
In 2008, a project of 106 kilometers of highway linking the
capital city, Santo Domingo in the south, to the burgeoning tourist market in
the Samana peninsula to the north, was partially funded through a critical
guarantee from MIGA. The guarantee opened financial doors by securing an
investment rating higher than the domestic requirement and attracting investors
keen on opportunities in Latin America. The high rating also lowered the
perceived risks associated with the project, and permitted investors to arrange
financing through capital markets. This north-south corridor now provides
growth opportunities for agricultural production, agribusiness, and tourism.
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