NIGERIA and 19 other countries benefitted from about $2.69bn guarantees between 2020 and 2021, the World Bank has said.
The guarantees were issued under the COVID-19 Fast Track Facility.
This was disclosed in one of the World Bank’s newly released FY21 financial statements, precisely the Multilateral Investment Guarantee Agency’s financial statement.
Other countries include Albania, Argentina, Belarus, Bosnia & Herzegovina, Botswana, Chile, Eswatini, Georgia, Ghana, Kosovo, Lesotho, Moldova, Montenegro, Mozambique, North Macedonia, Peru, Serbia, Ukraine and Zambia.
According to the statement, MIGA launched a $6.5bn Fast-track facility in April 2020 in response to the COVID-19 pandemic to support private sector investors and lenders in emerging markets and developing countries.
“In response to the COVID-19 pandemic, MIGA launched a $6.5bn Fast-track facility in April 2020.The facility was geared towards supporting private sector investors and lenders in emerging markets and developing economies, and was structured around the following three pillars,” it stated.
Nigeria and the other 19 countries benefited under the second pillar with guarantees totalling $1.127bn in FY20 and $1.563bn in FY21.
The guarantees were offered for capital optimization under this pillar, which means support for financial institutions in extending lending in host countries by freeing up risk weighted assets locked up in maintaining their mandatory reserves with their respective central banks.
