International Investment Agencies
OPIC The Overseas Private Investment Corporation (OPIC) is an agency of the US Government established in 1971 that helps U.S. businesses invest overseas and promotes economic development in new and emerging markets. OPIC's mission is to "foster economic development in new and emerging markets, support U.S. foreign policy and create U.S. jobs by helping U.S. businesses to invest overseas." The agency provides political risk insurance against the risks of political violence or expropriation. OPIC also provides financing through direct loans and loan guaranties.
OPIC
operations cost nothing to American taxpayers. The agency has earned a profit in each year of operations — $175 million in 2002 — and built its reserves to more than $4 billion. Currently, OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide.
OPIC’s financing and political risk insurance also help U.S. businesses of all sizes to compete in emerging markets and meet the challenges of investing overseas when private sector support is not available. OPIC promotes U.S. best practices by requiring projects to adhere to international standards on the environment and worker and human rights.
MIGA-It’s mission is to help support economic growth, reduce poverty, and improve people's lives.
The Multilateral Investment Guarantee Agency (MIGA) is a member of the World Bank group. It was established to promote FDI into developing countries. MIGA was founded in 1988 with a capital base of $1 billion and is headquartered in Washington, D.C. MIGA promotes FDI into developing countries by insuring investors against political risk, advising governments on attracting investment, sharing information through on-line investment information services, and mediating disputes between investors and governments. MIGA also requires host country government approval for every project. MIGA tries to work with host governments - resolving claims before they are filed.
MIGA's Business
MIGA provides guarantees against noncommercial risks to protect crossborder investment in developing member countries. Guarantees protect investors against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance, and Breach of Contract (for contracts between the investor/project enterprise and the authorities of the host country). These coverages may be purchased individually or in combination.
MIGA can cover only new investments. They are: - new investment contributions associated with the expansion, modernization, or financial restructuring of existing projects; and acquisitions involving privatization of state enterprises.
Unlike other insurers, MIGA is backed by the World Bank Group and its member countries.