World Bank Guarantee Agreement
Thank you for your participation in this survey! Your feedback is very helpful to us as we work to improve the website`s functionality on worldbank.org. The pricing of World Bank guarantees is set by the World Bank Council according to the same principles as those applied to its lending instruments. The amount of the guarantee fee is set at the I IBRD and the IDA level is adjusted according to the average life of the guarantee group and price to which the host country belongs. The IIV and IDA countries are divided into four subsequent price categories. The amount of the guarantee is not adjusted for project risks. Our guarantees offer several advantages to the government`s investment and strategic programs. Our guarantees are often combined with other instruments of the World Bank Group, including iFC and MIGA. They can also be combined with bonds to finance transactions ranging from construction to operations, which can lead to an increase in the rating of these bonds. Guarantee Contract This is a contract between the World Bank (IDA/IBRD) and the beneficiaries of the guarantee.
This contract includes the terms of the warranty, such as tenor, covered events, conditions, termination and suspension events, etc. With regard to loan guarantees, it is customary for the guarantee agreement to be included in the secured loan contract. The guarantees provided by the World Bank are powerful catalysts for attracting private sector investment and trade finance for strong development outcomes that support economic growth and improve public services in developing countries. Over the past two decades, our guarantees have mobilized more than $42 billion in commercial capital and private investment, including energy, transportation solutions, government and state-owned enterprises financing, innovative trade finance solutions and unique support to fragile countries. Recent global discussions on development finance have focused on the potential effects of the guarantee instrument, as the world strives to mobilize additional resources for development, particularly in the private sector. Project Agreement These are agreements to be concluded between the World Bank (IDA/IBRD) and the project company and/or the sovereign/sub-sovereign, depending on the specific structure. These contracts include standard obligations for IDA/IBRD, such as. B the underlying use funds, the proper functioning of the project, compliance with World Bank environmental standards, etc. Guarantee Support Agreement This is a contract between the government, the project company and the World Bank, with the government pledging to pay the outstanding amounts to the project company if the public entity or sub-state, which is the direct debtor, does not pay the payments.