Presented at the Annual Meeting of the MENA-OECD Working Group on Investment Policies and Promotion, March 2013

1. The MENA-OECD Guarantee Database
Investment Security in the Mediterranean
(ISMED) Support Programme
Implemented by the MENA-OECD Investment Programme
(with funding from the European Union)
Andrew Fitzpatrick
Economist/Policy Analyst, MENA-OECD Investment Programme
20 March 2013

2. Provide information to private sector
investors of available guarantees and other
risk mitigation instruments
Investment Security in the Southern Mediterranean
Guarantee Database
• The ISMED Guarantee Database will provide comprehensive information on
guarantee and other investment security instruments available to investors in
ISMED countries;
• In a first phase will focus on risk mitigation instruments available for investments in
Jordan, Egypt, Tunisia and Morocco;
• Will include products offered by multi-lateral organizations, export credit agencies
and private sector insurers.

3. Web-based Database
• Conceived as a web link on
www.oecd.org/mena;
• Controlled access during
development ;
• Could be linked to websites of
partner organizations;
• Users will select a risk exposure
and then drill down to find
country specific and detailed
information.
Risk Exposures
• Currency risk and controls;
• Expropriation;
• War, terrorism, civil disturbance;
• Breach of contract by state or state
controlled entity;
• Breach of contract by non-state
counterparty;
• Non-state counterparty credit risk;
• Non-payment of a financial
obligation by a state or state-
controlled entity.
Investment Security in the Southern Mediterranean
Guarantee Database

4. Investment Security in the Southern Mediterranean
Guarantee Database
• Currency Risk and Controls;
 Restrictions on ability to exchange local currency for foreign currency or to
transfer local currency out of the country. May restrict an investors ability
to repatriate profits or realize value of assets upon sale or liquidation;
 Available products do not usually cover exchange rate volatility. Swap
agreements may be available through financial institutions to hedge
foreign exchange risk.

5. Investment Security in the Southern Mediterranean
Guarantee Database
• Please select the country for which Currency Risks and Controls
guarantee/insurance coverage is sought:
Jordan
Egypt
Tunisia
Morocco

6. Investment Security in the Southern Mediterranean
Guarantee Database
• Currency Risks and Controls guarantee/insurance coverage
products available for investments in Jordan include:
Type of Product Price Duration Offered by
Currency Inconvertibility and
Transfer Restriction
Varies, Average 1% of
amount covered
3-15 years MIGA, click for
more information
Other products X% 1-20 years XXXX, click for
more information

7. Investment Security in the Southern Mediterranean
Guarantee Database
• MIGA’s Currency Inconvertibility and Transfer restriction product
Protects against losses arising from an investor’s inability to
legally convert local currency
(capital, interest, principal, profits, royalties, and other
remittances) into hard currency (Dollar, Euro or Yen) and/or to
transfer hard currency outside the host country where such a
situation results from a government action or failure to act.
Currency depreciation is not covered. In the event of a
claim, MIGA pays compensation in the hard currency specified in
the contract of guarantee.
• Eligibility, pricing coverage and duration.

8. Investment Security in the Southern Mediterranean
Guarantee Database
• Eligibility:
Cross-border investments by investors in a MIGA member country
into a developing member country;
New investments as well as existing investments meeting certain
criteria;
Equity investments, shareholder loans, shareholder loan
guarantees. Non-shareholder loans where some other form of
direct investment is present. Capital market bond issues may also be
eligible for coverage;
Must be financially and economically viable and meet MIGA’s social
and environmental standards.

9. Investment Security in the Southern Mediterranean
Guarantee Database
• Pricing coverage and duration:
Pricing is on a case-by-case basis depending on country and project
risk. Fees average approximately 1% of the amount covered but may
be considerably higher;
Generally up to 90% of equity investments and 95% of debt
investments. No minimum amount. Total MIGA coverage across all
MIGA products limited to $220 million USD, but may be higher
where syndicated with other providers;
Duration a minimum of three years and a maximum of 15. May be
extended to 20 if appropriate;
Case study.

10. KEY CONTACTS:
Mr. Alexander BÖHMER
Head, MENA-OECD Investment Programme
Alexander.Boehmer@oecd.org
Mr. Andrew FITZPATRICK
Economist/Policy Analyst
MENA-OECD Investment Programme
Andrew.Fitzpatrick@oecd.org
For general enquiries:
mena.investment@oecd.org
www.oecd.org/mena/investment
With the financial assistance of the European Union