RISK MITIGATION: What are Updates & Proposals on Risk Mitigation Products?

Product Name Political Risk Guarantee
Link to Product Website
Provider Name EBRD (European Bank for Reconstruction and Development)
Product Definition The EBRD provides various types of guarantees. These range from all-risk guarantees whereby the Bank covers lenders against default regardless of the cause, to partial risk-specific contingent guarantees covering default arising from specified events.

In all cases the maximum exposure must be known and measurable and the credit risk must be acceptable. Precise legal definitions of the events guaranteed and pricing are handled on a case-by-case basis. Generic products include debt guarantees, local currency loan guarantees and guarantees for trade facilitation.

Product Type Partial Risk Guarantee
Defined Risks Covered Political Risks: Regulatory
Political Risks: Breach of Contract
Political Risks: Expropriation
Political Risks: Currency Transfer and Convertibility
Political Risks: War and Civil Disturbance
Eligible Form of Investments Bonds
Bank Loans
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions
Algeria   Armenia   Azerbaijan  
Belarus   Bosnia and Herzegovina   Bulgaria  
Croatia   Czech Republic   Estonia  
Georgia   Hungary   Kazakhstan  
Kyrgyz Republic   Latvia   Lithuania  
Macedonia   Moldova   Mongolia  
Montenegro   Poland   Romania  
Russian Federation   Serbia   Slovak Republic  
Slovenia   Tajikistan   Turkmenistan  
Ukraine   Uzbekistan  
Eligible Applicants All
More on Eligible Applicants
Eligible Sector n.a.
Maximum Tenor 10+ to 15 years
Max. Absolute Amount (USD) 100+ to 250 MM
Max. % of Project Costs Covered 25+% to 50%
Max. % of Export Content Covered Over 85+%
Fees Market-based
Fees determined in a case-by-case evaluation

Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: Yes link
Environmental standards: Yes link
Social standards (incl. Human Rights Standards; Labor Rights Standards): No
Others: EBRD Strategies & Policies
More on Other Standards
Source(s) n.a.
For more information, contact
Business Development Unit, EBRD (European Bank for Reconstruction and Development)
Phone: 44 20 7338 7168
Attachments n.a.
Additional Links n.a.
Deals n.a.

Provider Name EBRD (European Bank for Reconstruction and Development)
Institution Type PUBLIC: Multilateral Development Bank
Ownership Owned by 61 Member Countries and two Intergovernmental Institutions
Head Office One Exchange Square, London EC2A 2JN, United Kingdom
Provider Home Country United Kingdom
Rating n.a.
Main Risk Mitigation Products n.a.
Attachments n.a.
Additional Links www.ebrd.com
Entered On: 07/04/2007 at 03:50 PM
Updated On: 05/07/2013 at 08:47 AM