World Bank2012-03-192012-03-192009978-0-8213-7679-9https://hdl.handle.net/10986/2627This evaluation reviews the World Bank Group's (WBG's) experience with guarantee instruments during 1990-2007. Although these instruments have been an established product line of the WBG for two decades, they have not been rigorously evaluated across the World Bank, International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA). The study asks three main questions: (1) should the WBG be in the guarantee business? (2) Have guarantee instruments in the three WBG institutions been used to their potential as reflected in WBG expectations and perceived demand? And, (3) is the WBG appropriately organized to deliver its range of guarantee products in an effective and efficient manner? The challenge for the WBG is to create an environment in which guarantee and insurance products can be deployed alongside other WBG instruments in a flexible and efficient manner to meet client needs. The report concludes that maintaining the status quo, particularly in the delivery of political risk mitigation products, ought not to be an option. It suggests that WBG senior management should decide whether to take a set of collective and individually tailored actions within the current institutional structure or to adopt a new organizational structure for product delivery.CC BY 3.0 IGOACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO FINANCINGACCESS TO INFORMATIONACCOUNTABILITYADBADVICE TO GOVERNMENTSADVISORY SERVICESARBITRAL AWARDSBALANCE SHEETBANK GUARANTEEBANK GUARANTEESBANK LENDINGBANK LOANBANK MANAGEMENTBANK POLICIESBANK POLICYBENEFICIARIESBENEFICIARYBIDBONDBOND ISSUESBOND MARKETBONDSBORROWERBUSINESS COMMUNITYBUSINESS DEVELOPMENTBUSINESS OPPORTUNITIESBUSINESS VOLUMESCAPITAL FLOWSCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL REQUIREMENTSCASH FLOWSCOLLATERALCOMMERCIAL FINANCECOMMERCIAL PAPERCOMMERCIAL TRANSACTIONCOMMERCIAL TRANSACTIONSCOMMODITY PRICESCONFLICT OF INTERESTCONFLICTS OF INTERESTCONTRACTUAL OBLIGATIONSCONTRACTUAL RELATIONSHIPCOUNTRY RISKCOUPONCOUPON RATECREDIBILITYCREDIT DERIVATIVECREDIT ENHANCEMENTCREDIT GUARANTEECREDIT GUARANTEESCREDIT RISKCREDIT RISKSCREDITORCREDITSCURRENT ACCOUNTCURRENT ACCOUNT SURPLUSESDEBTDEBT CRISESDEBT INSTRUMENTSDEBT MANAGEMENTDEBT OBLIGATIONSDEBT SERVICEDEBT SERVICE PAYMENTDEBTORSDERIVATIVEDERIVATIVE CONTRACTDERIVATIVESDEVALUATIONDEVELOPING COUNTRIESDEVELOPMENT ASSISTANCEDEVELOPMENT BANKDEVELOPMENT BANKSDIRECT LOANSDOMESTIC BANKSDOMESTIC FINANCIAL MARKETSDOMESTIC LIQUIDITYDUE DILIGENCEEARNINGSECONOMIC GROWTHECONOMIC POLICIESEMERGING MARKETSENTERPRISE ACCESSENTREPRENEURENTREPRENEURSEQUITY CAPITALEQUITY INVESTMENTSEXCHANGE RATESEXPLOITATIONEXPORTEREXPROPRIATIONSEXTERNAL FUNDINGFINANCIAL ASSETSFINANCIAL FLOWSFINANCIAL INNOVATIONFINANCIAL INSTRUMENTFINANCIAL INSTRUMENTSFINANCIAL INTERMEDIARIESFINANCIAL PRODUCTSFINANCIAL SERVICESFINANCING NEEDSFLOW OF INVESTMENTFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN INVESTMENTFOREIGN INVESTMENTSGENERAL GUARANTEESGLOBAL PRIVATE SECTORGLOBAL TRADEGROSS DOMESTIC PRODUCTGROUP GUARANTEEGUARANTEE AGENCYGUARANTEE PRODUCTGUARANTEE PRODUCTSGUARANTEE SCHEMESGUARANTORHOST COUNTRIESHOUSINGHOUSING FINANCEINDEBTED COUNTRIESINDEBTEDNESSINFORMATION ASYMMETRIESINFORMATION SHARINGINSTRUMENTINSURANCEINSURANCE AGENCYINSURANCE PRODUCTSINTEREST PAYMENTSINTEREST RATESINTERNATIONAL BANKINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL STANDARDSINVESTMENT CORPORATIONINVESTMENT FLOWSINVESTMENT GUIDELINESINVESTOR CONFIDENCEISSUANCELENDERLENDERSLETTERS OF CREDITLIABILITYLIABILITY SIDELIQUID MARKETSLIQUIDITYLOANLOAN PORTFOLIOLOAN PRODUCTSLOAN PROGRAMLOAN SYNDICATIONSLOCAL BANKSLOCAL CURRENCYLONG-TERM CAPITALMANDATESMARKET COMPETITIONMARKET DATAMARKET DEVELOPMENTSMARKET FAILURESMARKET INDEXESMARKET PLAYERSMARKET SHAREMARKETING STRATEGYMATURITIESMATURITYMATURITY MISMATCHESMORAL HAZARDMULTINATIONALNEW MARKETOUTREACHOUTREACH EFFORTSPARTIAL CREDITPARTIAL GUARANTEEPARTIAL RISKPAYMENT OF INTERESTPERFORMANCE BONDPLEDGESPOLITICAL RISKPOLITICAL RISKSPOLITICAL UNCERTAINTYPOOR ACCESSPORTFOLIO RISKPORTFOLIOSPRIVATE BORROWERSPRIVATE CAPITALPRIVATE DEBTPRIVATE DEBT MARKETSPRIVATE FINANCEPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE INVESTORSPRIVATE SECTOR FINANCINGPROBABILITY OF DEFAULTPUBLIC AGENCIESPUBLIC-PRIVATE PARTNERSHIPPUBLIC-PRIVATE PARTNERSHIPSRETURNRISK MANAGEMENTRISK MITIGATIONRISK PERCEPTIONSRISK PROFILESECURITIESSETTLEMENTSHAREHOLDERSSHORT-TERM FINANCESOVEREIGN COUNTER-GUARANTEESOVEREIGN GUARANTEESSUBNATIONAL FINANCESUBSIDIARYSWAPTIMELY PAYMENTTRADE FINANCETRANCHETRANSACTIONTRANSACTION COSTSTRANSFER RISKTRANSPARENCYTREASURYUNDERLYING ASSETSUNIONURBAN DEVELOPMENTVILLAGEWOMANWorld Bank10.1596/978-0-8213-7679-9