| Project Detail |
This summary covers an application made by the Inter-American Development Bank (IDB) to MIGA for coverage of one of its loans which is guaranteed by the Federative Republic of Brazil. MIGA’s coverage is a guarantee of Non-Honoring of Sovereign Financial Obligations to a Multilateral Development Bank (NHSFO-MDB) for up to US$100 million and a tenor of up to 11 years.
In September 2023, MIGA’s Board of Directors approved the new NHSFO-MDB program. This cover enables Multilateral Development Banks to manage country limits and concentration and be a supportive factor in the rating assessment of MDBs, thereby supporting their strategy to lend more. The transaction contemplated is a pilot in this program.
IDB’s Board of Governors approved a new institutional strategy for 2024-2030, to increase the impact and scale of the IDB Group’s work in the Latin American and Caribbean region. The IDB Group aims to double its current outstanding loan portfolio and enable this growth by unlocking US$50 billion via balance sheet optimization. The strategy integrates key elements from the G20 Capital Adequacy Frameworks review for multilateral development banks, notably resource mobilization that generates greater leverage. |
