Benoit, Philippe2012-08-132012-08-131996-05https://hdl.handle.net/10986/11624The 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. The author explains how these vehicles work and reviews some of their advantages and disadvantages.CC BY 3.0 IGOBANK ACCOUNTSBANK GUARANTEESBONDSCOMMERCIAL BANKSCOVERAGEDEBTDEBT SERVICEELECTRICITYFINANCIAL RESOURCESFOREIGN EXCHANGEFOREIGN SPONSORSGOVERNMENT GUARANTEESGUARANTORINSURANCEINSURERSLENDERLENDERSLOANLOAN FINANCINGMATURITIESMATURITYPRIVATE SECTORPROJECT SPONSORSRATESRISK MITIGATIONTRANSACTION COSTSWORLD BANK FINANCINGWORLD BANK LOANS PROJECT RISKSRISK MANAGEMENTGOVERNMENT OWNERSHIPMULTILATERAL INVESTMENT GUARANTEE AGENCYFOREIGN INVESTMENTSPOLITICAL STABILITYRISK ASSESSMENTPRIVATE INVESTMENTSINVESTMENT RISKSGOVERNMENT GUARANTEESWorld Bankhttps://doi.org/10.1596/11624