Mitigating Project Risks--World Bank Support for Government Guarantees
Author: Philippe Benoit Date: 5/1/1996 (PDF, 200KB)
The World Bank has two distinct financial vehicles to support developing country governments wanting to provide guarantees to attract private investors: issuing guarantees to investors and making loans to host governments to fund guarantees. Philippe Benoit explains how these vehicles work and reviews some of their advantages and disadvantages.