MIGA GUARANTEES Investors and lenders in today’s dynamic investment climate understand the benefits of investing in emerging markets. They also understand the critical importance of addressing the political risks that may accompany an investment in an untested environment. MIGA helps investors and lenders deal with these risks by insuring eligible projects against losses relating to: Currency transfer restrictions Expropriation War and Civil disturbance Breach of contract Non-honoring of sovereign financial obligations Eligibility. MIGA insures cross-border investments. This includes new investments as well as investments associated with the expansion, modernization, or financial restructuring of existing projects, or where the investor demonstrates both the development benefits of, and a long-term commitment to, the project. Acquisitions by new investors, including the privatization of state-owned enterprises may also be eligible. Types of foreign investments that can be covered include equity, shareholder loans, and shareholder loan guaranties, provided the loans have a minimum maturity of three years. Non-shareholder loans can be insured, as long as they relate to a specific investment or project in which some other form of direct investment is present. Other forms of investment, such as technical assistance and management contracts, asset securitizations, capital market bond issues, leasing, services, and franchising and licensing agreements, may also be eligible for coverage. Pricing. MIGA prices its guarantee premiums based on a calculation of both country and project risk. Annual premiums for the Small Investment Program guarantee (three coverages) range between (.45%) and (1.75%) of the insured amount per year. Duration of guarantee. Coverage is for up to 15 years (possibly 20 if justified by the nature of the project). MIGA cannot terminate the contract unless the guarantee holder defaults on its contractual obligations to MIGA, but the guarantee holder may reduce or cancel coverage on any contract anniversary date starting with the third anniversary.