The MENA-OECD Guarantee Database
10
The MENA-OECD Guarantee Database Investment Security in the Mediterranean (ISMED) Support Programme Implemented by the MENA-OECD Investment Programme (with funding from the European Union) Andrew Fitzpatrick Economist/Policy Analyst, MENA-OECD Investment Programme 20 March 2013
-
Upload
oecdglobal -
Category
Investor Relations
-
view
149 -
download
0
description
Presented at the Annual Meeting of the MENA-OECD Working Group on Investment Policies and Promotion, March 2013
Transcript of The MENA-OECD Guarantee Database
The MENA-OECD Guarantee Database
Investment Security in the Mediterranean (ISMED) Support Programme
Implemented by the MENA-OECD Investment Programme (with funding from the European Union)
Andrew Fitzpatrick
Economist/Policy Analyst, MENA-OECD Investment Programme
20 March 2013
Provide information to private sector
investors of available guarantees and other
risk mitigation instruments
Investment Security in the Southern MediterraneanGuarantee Database
• The ISMED Guarantee Database will provide comprehensive information on guarantee and other investment security instruments available to investors in ISMED countries;
• In a first phase will focus on risk mitigation instruments available for investments in Jordan, Egypt, Tunisia and Morocco;
• Will include products offered by multi-lateral organizations, export credit agencies and private sector insurers.
Web-based Database• Conceived as a web link on
www.oecd.org/mena;• Controlled access during
development ;• Could be linked to websites of
partner organizations;• Users will select a risk exposure
and then drill down to find country specific and detailed information.
Risk Exposures • Currency risk and controls;• Expropriation;• War, terrorism, civil disturbance;• Breach of contract by state or state
controlled entity;• Breach of contract by non-state
counterparty;• Non-state counterparty credit risk;• Non-payment of a financial
obligation by a state or state-controlled entity.
Investment Security in the Southern MediterraneanGuarantee Database
Investment Security in the Southern MediterraneanGuarantee Database
• Currency Risk and Controls; Restrictions on ability to exchange local currency for foreign currency or to
transfer local currency out of the country. May restrict an investors ability to repatriate profits or realize value of assets upon sale or liquidation;
Available products do not usually cover exchange rate volatility. Swap agreements may be available through financial institutions to hedge foreign exchange risk.
Investment Security in the Southern MediterraneanGuarantee Database
• Please select the country for which Currency Risks and Controls guarantee/insurance coverage is sought: JordanEgyptTunisiaMorocco
Investment Security in the Southern MediterraneanGuarantee Database
• Currency Risks and Controls guarantee/insurance coverage products available for investments in Jordan include:
Type of Product Price Duration Offered byCurrency Inconvertibility and Transfer Restriction
Varies, Average 1% of amount covered
3-15 years MIGA, click for more information
Other products X% 1-20 years XXXX, click for more information
Investment Security in the Southern MediterraneanGuarantee Database
• MIGA’s Currency Inconvertibility and Transfer restriction product Protects against losses arising from an investor’s inability to legally convert local currency (capital, interest, principal, profits, royalties, and other remittances) into hard currency (Dollar, Euro or Yen) and/or to transfer hard currency outside the host country where such a situation results from a government action or failure to act. Currency depreciation is not covered. In the event of a claim, MIGA pays compensation in the hard currency specified in the contract of guarantee.
• Eligibility, pricing coverage and duration.
Investment Security in the Southern MediterraneanGuarantee Database
• Eligibility:Cross-border investments by investors in a MIGA member country
into a developing member country;New investments as well as existing investments meeting certain
criteria;Equity investments, shareholder loans, shareholder loan
guarantees. Non-shareholder loans where some other form of direct investment is present. Capital market bond issues may also be eligible for coverage;
Must be financially and economically viable and meet MIGA’s social and environmental standards.
Investment Security in the Southern MediterraneanGuarantee Database
• Pricing coverage and duration:Pricing is on a case-by-case basis depending on country and project
risk. Fees average approximately 1% of the amount covered but may be considerably higher;
Generally up to 90% of equity investments and 95% of debt investments. No minimum amount. Total MIGA coverage across all MIGA products limited to $220 million USD, but may be higher where syndicated with other providers;
Duration a minimum of three years and a maximum of 15. May be extended to 20 if appropriate;
Case study.
KEY CONTACTS:
Mr. Alexander BÖHMER
Head, MENA-OECD Investment Programme
Mr. Andrew FITZPATRICK
Economist/Policy Analyst
MENA-OECD Investment Programme
For general enquiries:[email protected]
www.oecd.org/mena/investment
With the financial assistance of the European Union
