Vietnam risk guaranteed

Vietnam risk guaranteed

HANOI (Reuter): The Multinational Investment Guarantee Agency (MIGA), a World Bank agency, has issued its first guarantee contract for Vietnam to Citibank, the U.S. bank said yesterday.

The MIGA guarantee of US$13.5 million covers 90 percent of Citibank's $15 million investment against risks of civil disturbance, war, transfer restriction and expropriation, it said in a statement.

Since Vietnam joined MIGA in October 1994, the World Bank agency has received more than 30 applications for coverage of potential foreign investment in Vietnam totaling hundreds of millions of dollars, Citibank added.

MIGA seeks to encourage foreign investment in developing countries by providing political risk insurance.