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Bhutan became 181st member of MIGA, agency of World Bank

Dec 10, 2014 17:58 IST

Bhutan on 8 December 2014 became the 181st member of Multilateral Investment Guarantee Agency (MIGA). MIGA is the political risk insurance and credit enhancement arm of the World Bank Group.

Bhutan has fulfilled all of its membership requirements to become the member of MIGA.
 
Benefits of becoming a member

•    The move will allow the private sector and corporations of a country to explore external commercial borrowing (ECB).

•    Once a member of MIGA, the private sector and corporations in the country will have the option of directly applying to MIGA for issuance of guarantee to attract Foreign Direct Investment (FDI).

•    MIGA’s guarantee can help investors obtain access to ECB with improved financial terms and conditions.

•    Premium rates are decided on per project basis, and vary by country, sector, transaction and the type of risk insured.

•    Bhutan is now eligible for the Agency’s investment guarantees.

•    Investors from Bhutan going into MIGA’s other developing member countries may also receive coverage for their investments.

Earlier, in October 2012, Bhutan has applied for the membership of MIGA.

To become a member, the country is required to sign the MIGA convention, and deposit its instrument of ratification.

The signed convention will further submitted to Parliament for ratification. The ratified instrument will be deposited with the World Bank. Finally, the country will have to subscribe to shares of MIGA’s capital stock.

Membership in MIGA is available only to countries that are members of the World Bank. Bhutan does not have credit rating but has been a member of the World Bank since 1981.

About Multilateral Investment Guarantee Agency

MIGA is a member of the World Bank Group. MIGA aims to promote foreign direct investment (FDI) into developing countries to help support economic growth, reduce poverty, and improve people's lives.

MIGA consists of total of 177 member Governments, out of which 152 are developing and 25 are industrialised countries.

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