By KYIV. Nov 17 (Interfax-Ukraine) – Two pilot investment projects – one domestic and one foreign investor – with war risk insurance by the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group are planned to be launched before the end of this year, First Deputy Prime Minister and Economy Minister Yulia Svyrydenko said.
"We have an agreement with MIGA, as part of the World Bank: they give the first money before the end of the year, so that we can try to launch at least several investment projects with the possibility of war risk insurance before the end of the year," she said at the Kyiv International Economic Forum on Thursday.
"Now we have two investment projects in our work at the Ministry of Economy. I think that we will complete them by the end of the year," Svyrydenko added.
She specified that MIGA covers up to 90% of risks.
The First Deputy Prime Minister noted that MIGA allocated $30 million for these purposes this year, while $1 billion for the next year.
According to her, the launch of such projects with MIGA will be a good signal for the American state-owned Development Finance Corporation (DFC, formerly OPIC), which has the ability in the charter to finance such political risks and which did this in the 90s in the Balkans.
The Ministук of Economy added that work is also underway to attract several export credit agencies of the G7 countries to such insurance.
Roman Kachur, Deputy Executive Director from Ukraine at the World Bank, specified at the forum that there is a specific pilot project in western Ukraine with the participation of MIGA, which has reached the stage of "exchanging contracts, calculating coverage ratios and insurance costs." "I think it’s the questions of the weeks," he said.
