Credit guarantees can be granted to different issuers, for example. B private and public projects (recourse), public-private partnerships, enterprises and (sub)state bodies. Credit guarantees reduce the risk of default for lenders and investors, increase the solvency of projects/issues, thereby helping to improve access to capital markets and attract private capital. Construction risk guarantees protect investors and lenders from risks that threaten the completion of construction and the commissioning of infrastructure projects in the Green Prairie. The Agency`s Small Investment Program aims to promote foreign direct investment in small and medium-sized enterprises in particular. The program offers standard types of MIGA coverage, unless it does not cover any breach of contract. The objective of the FGM is to fill gaps where the capacities placed on the market and the MIGA are not sufficient or are not available to attract private investment in IDA PSW eligible countries. Credit guarantees cover a borrower`s debt service obligations on secured capital and interest to be paid to lenders. Credit guarantees cover the risk of default, regardless of the cause of defaults, whether political or economic. The instrument can be designed to address specific debt structures and risks at different stages of the project.
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