MIGA unveils $6.5bn fast-track COVID-19 facility

The Multilateral Investment Guarantee Agency (MIGA) has launched a $6.5 billion fast-track facility to support private sector investors and lenders tackling the COVID-19 pandemic in low and middle-income countries. 

The facility redirects MIGA’s capacity toward the purchase of urgent medical equipment, provides working capital for small and medium-sized enterprises, corporates and individuals, and supports short-term funding needs of governments. 

The facility, which allows for issuance of guarantees using streamlined and expedited procedures, aims to meet coronavirus-related challenges through four mechanisms:

• Credit enhancement for governments and their agencies to borrow on non-concessional terms to purchase urgent medical equipment, protective gear, medicines, and services.
• De-risking solutions for commercial banks and financial institutions so they continue to provide lending through their subsidiaries in low- and middle-income countries.
• Credit enhancement for governments and their agencies seeking to access the credit markets for funding economic recovery projects and programs in a liquidity-constrained environment.
• Supporting trade finance in partnership with IFC to extend cover for local banks in low income and fragile countries to ensure the continued flow of goods through global supply chains.