New investments, including contributions associated with the expansion, modernization, or financial restructuring of existing projects, and acquisitions that involve the privatization of state enterprises are eligible. Investors pay premiums into the fund. In March 1997 the Board of Directors of MIGA approved the establishment of a special Investment Guarantee Trust Fund, sponsored exclusively by the European Union and administered by MIGA to facilitate the flow of foreign investments into Bosnia and Herzegovina. MIGA will issue guarantees on behalf of, and pay compensation from, the trust fund. New investments, including contributions associated with the expansion, modernization, or financial restructuring of existing projects, and acquisitions that involve the privatization of state enterprises are eligible.
Investors pay premiums into the fund.
Developed in late 1995, the program is designed to ensure that Bosnia's reconstruction priorities are addressed consistently by all donors, that reconstruction activities are mutually reinforcing, that scarce donor resources are used efficiently, and that gaps and overlaps are avoided. The EBRD, IBRD, IFC, and MIGA designed several projects in support of the Priority Reconstruction Program. Together with the European Commission and bilateral partners they provide significant financing for the program. Several additional projects are under preparation. These projects address both the critical need to rebuild rapidly and the need to prepare the country for the day when donor assistance will no longer be required.