2024-03-01 20:25:33
The World Bank Group has announced a major overhaul of its guarantees activities, which will “gain simplicity, access and speed of execution within the framework of a new centralized and adapted platform”.
“These reforms are essential to achieve the Group’s objective of tripling its annual amount of guarantee issuance, to bring it to $20 billion by 2030,” underlines the Washington-based financial institution in a press release.
In June 2023, the World Bank Group established the Private Investment Lab to identify barriers to renewable energy investment and present solutions to address them. However, insurance against political risks emerged as a major subject within this group of business leaders, who also focused on accessibility issues, notes the press release.
Similarly, the G20 Independent Expert Group’s recent report on strengthening multilateral development banks also called for an increase in the use of guarantees to mitigate risks and catalyze private financing.
The announced overhaul, the first of this magnitude in 15 years, concerns in particular a concentrated structure which will bring together all the warranty experts from across the Group, a simplified and complete product offering, a streamlined process, greater accessibility and the establishment of new innovative tools to offer new and innovative guarantee products that will allow the private sector to become more engaged in solving current development challenges.
“The resources and ingenuity of the private sector are essential to meeting the world’s major challenges. By consolidating our offerings, simplifying processes and improving accessibility, we are ensuring businesses have faster and easier access to guarantees,” notes World Bank President Ajay Banga, quoted in the press release.
“Our new platform is a key lever to triple our guarantees business within the World Bank Group, but above all to encourage investors to become more engaged in developing economies and accelerate positive change,” adds Mr. Banga.
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