Question

Write short note on MIGA.

Answer 1

The Multilateral Investment Guarantee Agency (MIGA) is an international financial institution which offers political risk insurance and credit enhancement guarantees. These guarantees help investors protect foreign direct investments against political and non-commercial risks in developing countries.

Answer 2

The abbreviation of MIGA is the 'Multilateral Investment Guarantee Agency'.

Explanation:

• 'Multilateral Investment Guarantee Agency' is an 'international financial institution'. They provide ‘political life insurance’ and are a member of the World Bank Group.
• It was established in the year 1985 but it started operating in the year 1988. Their capital then was 1 billion.
• It was established to complement non-commercial risk insurance which can be then helpful in making investments in countries that are developing.