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Currency Inconvertibility MIGA provides political risk insurance (guarantees) for projects in a broad range of sectors in 

developing member countries, covering all regions of the world.


MIGA guarantees offer much more than just the assurance that losses will be recovered. Our insurance also benefits investors

and lenders by:


Non-Honoring of Financial Obligations coverage provides protection against losses resulting from a failure of a sovereign

,sub-sovereign, or state-owned enterprise to make a payment when due under an unconditional financial payment obligation

or guarantee related to an eligible investment. It does not require the investor to obtain an arbitral award. This coverage is

applicable in situations when a financial payment obligation is unconditional and not subject to defenses. Compensation is

based on the insured outstanding principal and any accrued and unpaid interest.

and Transfer Restriction coverage provides protection 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.


Breach of Contract coverage provides protection against losses arising from a government’s breach or repudiation of a contract

(for example, a concession or a power purchase agreement) with an investor. In certain circumstances, coverage may be

extended to the contractual obligations of state-owned enterprises. In the event of an alleged breach or repudiation, an

investor first invokes a dispute resolution mechanism (such as an arbitration) set out in the underlying contract. If, after a

specified period, the investor is unable to obtain an award because of the government’s interference with the dispute 

resolution mechanism (denial of recourse), or has obtained an award but not received payment (non-payment of an award), 

MIGA will pay compensation. If certain conditions are met, MIGA may, at its discretion, make a provisional payment pending 

the outcome of the dispute, and before compensation for non-payment of an award is paid.


For non-payment of an award, MIGA pays the investor's interest in the award. For denial of recourse, MIGA pays the investor's

interest in the amount which, according to MIGA’s claims determination, the host government would have to pay to the investor

pursuant to the contract. In either case, MIGA’s compensation is capped by the amount of guarantee stated in the guarantee



War, Terrorism, and Civil Disturbance coverage provides protection against loss from, damage to, or the destruction or 

disappearance of, tangible assets or total business interruption (the total inability to conduct operations essential to a project’s

overall financial viability) caused by politically motivated acts of war or civil disturbance in the country, including revolution

,insurrection, coups d'état, sabotage, and terrorism. 


For tangible asset losses, MIGA pays the investor’s share of the lesser of the replacement cost and the cost of repair of the

damaged or lost assets, or the book value of such assets if they are neither being replaced nor repaired. For total business

interruption that results from a covered war and civil disturbance event, compensation is based, in the case of equity 

investments, on the net book value of the insured investment or, in the case of loans, the insured portion of the principal and

interest payment in default. This coverage encompasses not only violence in the host country directed against a host country

 government, but also against foreign governments or foreign investments, including the investor’s government or nationality. 


Temporary business interruption may also be included upon a request from the investor and would cover a temporary but 

complete cessation of operations due to loss of assets or unreasonably hazardous conditions in the host country, which result

in a temporary abandonment or denial of use. For short-term business interruption, MIGA pays unavoidable continuing 

expenses and extraordinary expenses associated with the restart of operations and lost business income or, in the case of loans,

missed payments. 


Expropriation coverage provides protection against losses arising from certain government actions that may reduce or eliminate

ownership of, control over, or rights to the insured investment. In addition to outright nationalization and confiscation,

"creeping" expropriation—a series of acts that, over time, have an expropriatory effect—is also covered. Coverage is available

on a limited basis for partial expropriation (e.g., confiscation of funds or tangible assets).


In the case of total expropriation of equity investments, compensation to the insured party is based on the net book value of 

the insured investment. For expropriation of funds, MIGA pays the insured portion of the blocked funds. For loans and loan

guarantees, MIGA can insure the outstanding principal and any accrued and unpaid interest. Compensation is paid upon

assignment of the investor's interest in the expropriated investment (e.g., equity shares or interest in a loan agreement) to


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