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.