Multilateral Investment Guarantee

Mechanism Introduction

Today's business commodity is getting more and more clearly recognizing that there is a good investment opportunity in developing countries. However,

to the unstable policy environment, insight into political risks, and neglect of specific investment opportunities often hinder investment. As a result, as a key driver factor of economic growth, most of the foreign direct investment is only to a few countries, and to a large extent, it has ignored the most poor people in the world.

The agency should address the above concerns in two ways: First, by providing political risk guarantees to investors and lenders; second, it is through providing technical assistance to assist developing countries to attract private investment.

Historical Development


Multilateral investment guarantee institution was established in June 1988, but the establishment agency's recommendations have been proposed in 1961, the World Bank I also drafted the draft "Institution" agreement in 1966 and discussed and revised the draft 28 times. However, due to the difference between all parties, the draft has not been adopted, and the World Bank decided to stop the discussion of "institutions".

Approved Convention

In 1981, the World Bank decided to re-discuss the establishment of "institutional" issues. After 4 years of work, 1985 World Bank adopted the "Treaty of the Multilateral Investment Guarantee (also known as" Hancheng Convention ", referred to as the Convention). According to the Convention on the "Convention of the Multilateral Investment Guarantee, the Convention must meet the following conditions: First, there must be 5 countries (developed countries) and 15 second-class countries (developing countries) to sign and approve; the second is these national subscription shares The total amount must reach 33% of the "institution" statutory capital. In October 1987, the relevant national convening meetings decided to approval the "Convention" before April 30, 1988 as a founder. On June 8, 1988, the establishment of a conference in Washington, and the multilateral investment guarantee institution was formally established.

According to the Convention, the institutional statutory capital is 1 billion special withdrawal rights, divided into 100,000 shares, 10,000 special withdrawal rights per share, each Member State shall not be less than 50 share. Within 90 days from the "Convention", 10% of the stocks must be paid in cash (25% of developing countries), and 10% can be used for non-transferable words. Or the similar bond payment. The remaining 80% of the institutions need to pay off their debts.

As of June 6, 1994, 147 countries have signed the "Convention" to join the "organization", of which 120 countries have approved the Convention, which has been determined by the 120 Member States. The total stock is $ 840 million, paying $ 170 million. On April 30, 1988, China approved the Convention and became the founding Member States of the agency, and subscribed to 3.138% of the shares, ranking first in the second type of Member States.

Convention nature

According to the Convention, the goal of institutions is to encourage between its Member States, especially to cultivate productive investment to developing countries, to supplement the World Bank. , International financial companies and other international development financial institutions. In order to achieve these goals, the agency should: 1. When the country is investing in investment from other Member States, the non-commercial risk of investment is guaranteed, including joint insurance and distribution; 2. Carry out suitable auxiliary activities to promote Investment flows to developing countries and investment between membership countries in developing countries; 3, and exercising other necessary and suitable attachments.


Multilateral Investment Guarantee Institution Convention

(through October 11, 1985, 15 April 12, 1988)

< P> Introduction

This Convention signing the country, considering the need to strengthen international cooperation to promote economic development, and promote general foreign investment, especially foreign private investment contribute to the above development;

< P> Recognize the reducing concerns related to non-commercial risks to promote and further encourage foreign investment to flow to developing countries;

I hope to treat foreign investment based on justice and stable standards. In the case of the development needs of developing countries, the policies and goals, promote funds and technologies to develop countries with the purpose of production;

Confident multilateral investment guarantee institutions encourage foreign investment, Supplementary national and regional investment guarantee plans, as well as private insurance for non-commercial risks, it is important to play an important role; and

believes that the agency should be solved as much as possible without having to pay the capital. Its debt has achieved this goal by continuously improving investment conditions, and

agreed as follows:

The establishment of the first chapter of the agency

And status

1, the multilateral investment guarantee mechanism (hereinafter referred to as institution).

2, the agency should have a complete legal person, especially if it is right:

(1) signing contract:

(2) acquisition and processing does not work and Moving; and

(3) conduct legal proceedings.

The objectives of the object and purpose

The objectives should encourage between its Member States, especially to develop nationalized investment, to supplement international revival development Bank (hereinafter referred to as bank), international financial companies and other international development financial institutions.

To achieve these goals, the agency should:

1. When the country is investing in investment from other Member States, it is guaranteed to invest in non-commercial risks, including re-insurance Separate;

2 to carry out appropriate auxiliary activities to promote investment flows between Member States to developing countries and in developing countries; and

three, Promote its goals, exercise other necessary and appropriate attachments.

The decision of the agency should be guided by the provisions of this Convention.

Article 3 defines the

for this Convention:

1. "Member States" refers to the effectiveness of this Convention according to this Convention nation.

two, "host country" or "host country government", referring to Member States, its government, or any government agencies, according to Article 66, will be guaranteed in its investment in its territory. Or reinforce or have been guaranteed or reserved.

Third, "Developing Countries Member States" refers to the second type of Member State listed in Schedule of the Convention. The Board mentioned in Article 30 can modify the schedule at any time.

four, "Special Most Tickets" refers to the representative agency to pay more than 55% of the shares, not less than 2/3 of the total voting rights.

5, "Free use of currency" refers to: (1) Annual Monetary Fund designates any currency that can be used freely; (2) The board of directors and the International Monetary Fund mentioned in Article 30 Negotiate and obtain any other free acquired and efficient use currency specified for the purposes of this Convention.

Chapter 2 Member States Qualifications

Article 4 Member States Qualifications

1. Institutional Member States The qualifications should be issued to the International Fuxing Development Bank All Member States and Switzerland open.

Second, the founding member should be included in the discuetment of this Convention and to join the country of this Convention on October 30, 1987. Article 5 Capital

1. The agency statutory capital is 1 billion special fund (SDR1000000000). The capital is divided into 100,000 shares, and the value per share is 10,000 special funds for Member States to subscribe. Member States subscribe to the payment of equity issues on the average value of the US dollar price as a special funding right of the US dollar from January 1 to 30, 1985, that is, each special withdrawal right is equal to $ 1.082.

II. When accepting a new Member State, if the existing statutory shares are not enough for this Member State, the capital should be increased.

Third, the Directors will be adopted by special via tickets, and can increase the capital at any time.

Article 6 Subscription Shares

The initial Member State of the institution must comply with the share of the shares under this Member State in accordance with this Convention, and other members The country will hold the amount and conditions of the capital shares decided by the Council, but in any case, it shall not subscribe according to the issue price below the ticket. The number of sharing shares of Member States shall not be less than 50 shares. The agency can set rules to enable Member States to increase the subscription share of the statutory share capital.

Article 7 Subscription Shares The distinction between the shares,

The first subscription shares of each Member States should pay according to the following conditions:

one, self Within 90 days from the date of entry into force of the Member Country, 10% of the stocks must be paid in accordance with the provisions of Article 8 of the first paragraph, and 10% use the non-transferable words or similar. Bond payment, when the institution needs to pay off their debts, according to the decision of the board of directors;

two, the remainder part is puzzled by the agency to pay off their debts.

Article 8 Subscription Shares Payment

1. Subscription Shares must be free to use currency payment, developing countries Member States in accordance with seventh paragraph The total cash, 25% can be paid by domestic currency.

Second, the imposing of any part of the unpaid shares should be treated equal to all shares.

Third, the agency needs to pay for the debt, and the amount of the income amount is not sufficient to pay its debts, the agency can continue to pay continuously to the unpaid shares until the total number of debts is repayed.

Fourth, the amount of the shares is limited by the amount of interest in the distribution price of the shares.

Article 9 Value of currency

For this Convention must determine a currency in the value of another currency, this institution will be with the International Monetary Fund. After organizing negotiation, the value is reasonably determined.

Article 10 refunds

1. Once it is feasible, the agency will return the amount of payable of the payment of the shares under the following conditions:

(1) The reminder should be for solvency caused by the guarantee or re-contained contract, but then, the agency has been used freely or partially or partially recovered this payment; or

(2) The reminder should be due to the failure to pay the payment on time, but after, the Member State pays all or part of the payment; or

(3) Council Special majority votes are determined, the financial status of the organization allows all or part of the puce to be returned to Member States with its income.

II. Any refund according to this section shall be paid free to use money, and the amount should be the amount of payment of the member state to pay the payment before the refund. Proportion.

Third, the amount of refund to a Member State shall become part of the Member State to pay the capital obligation of the Member States in accordance with seventh paragraph 2.

Chapter 3 Business Activities

Article 11 Insurance insurance


Article 12 qualified investment


Article 13 Qualified investors


Article 14 qualified host country < / p>

According to this chapter, it is only guaranteed to investment in the territory of developing countries?

Article 15 Eastern host countries

in the host government agrees Before the designated underwriting risk is guaranteed, the agency shall not conclude any guarantee contract.

Article 16 Guarantee Conditions

The guarantee conditions for each guarantee contract shall be determined by the organization according to the regulations and regulations issued by the board of directors, but the agency must not guarantee the loss of investment. . The guarantee contract is approved by the President under the guidance of the board of directors.

Article 17 The payment of the claims

presidents under the guidance of the board of directors shall decide on the payment of the insured claims based on the policy of guarantee contracts and board of directors. The guarantee contract should be requested by the insured to seek appropriate, according to the administrative remember of the host country. The guarantee contract can require a reasonable time limit between the incidents that cause the claims and the payment of the claim.

Article 18 Results


Article 19: Relationship with national and regional entities

member The national national entity and most of the capital are similar to the business activities of regional entities owned by Member States. The agency should cooperate with these institutions and try to supplement their business. It is designed to maximize their respective services, expand their contributions to foreign investment flows. For this purpose, the agency should arrange for the details of such cooperation, especially in the way, and re-insurance. .

20 national and regional entities reserves


212 with private guarantors and recapture Cooperation

1. The agency can sign an agreement with the private guarantor in Member States to strengthen its own business, and encourage private guarantors to use non-commercial risks of developing countries. Similar conditions provide guarantees. This cooperation includes the conditions and procedures provided in the Mechanism Tenth 20 to provide re-guarantee services.

II, the mechanism can provide some or all of the re-insurance with the warranty made by the appropriate reinforcement entity.

Third, the agency should especially try to guarantee the investment of private guarantors or re-safeguards corresponding guarantees.

Article 22 of the guaranteed limit

1. Unless the Board is decided by a special number of votes, the total number of liabilities guaranteed by this chapter should not exceed the institution. The sum of the capital, the reserve, and the sum of the sum of the part of the board defined by the board. The board of directors shall, according to their experience in claiming, risk diversification, renovation, and other relevant aspects, often inspect the risk status of each investment provided by the agency guarantee, and determine whether to change the role to the Council to change the role of the institution. . In any case, the counters determined by the Council may not exceed the three-fold sum of the three items that are considered appropriate in the storage and reinforcement capital of the institution unijected capital, reserves and reservation funds.

II. Under the premise of non-violation of the guarantee limits specified above, the Board may specify:

(1) The agency according to this chapter is investor in the same Member States. The guarantee limit can be provided. When deciding this limit, the Board should consider the shares of Member States in institutional capital and should address the investment from Member States from developing countries; and

(b) mechanism according to dispersion The guarantee limit that the risk of risk can be undertaken, including various projects, different host countries and types of investment or

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