Context:
World Bank Group Guarantee Platform (WBG GP) goes live for business
WBG GP:
- Objective – To boost WBG annual guarantee issuance to $20 billion by 2030.
- WBG issued approximately $10.3 billion in new guarantees using products from the platform in 2024.
- Provides 3 types of coverages –
- Credit guarantees for loans to the public or private sector
- Trade finance guarantees
- Political risk insurance against non-commercial risks for private sector projects or public-private partnerships.
WB Group:
- Global partnership of five institutions
- IBRD (The International Bank for Reconstruction and Development) – It provides loans, credits and grants.
- IDA (The International Development Association) – It provides low or no-interest loans to low-income countries.
- IBRD and IDA form the World Bank
- International Finance Corporation (IFC) – It provides investment, advice and asset management to private companies and governments.
- Multilateral Guarantee Agency (MIGA) – It insures lenders and investors against political risk such as war.
- International Centre for the Settlement of Investment Disputes (ICSID) – It settles investment-disputes between investors and countries.
- India’s role – India is not a part of ICSID
Source: World Bank
Previous Year Question
Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?
[UPSC Civil Services Exam – 2016 Prelims]
(a) Rouble
(b) Rand
(c) Indian Rupee
(d) Renminbi
Answer: (d)
