Mitigating Currency Convertibility Risks in High-Risk Countries : A New IDA Lending Approach

Rasmussen, Karen

World Bank, Washington, DC

关键词: CONVERTIBILITY;    RISK MANAGEMENT;    INVESTMENT RISKS;    EQUITY INVESTMENTS;    DEVELOPMENT CREDIT AGREEMENT;   

RP-ID  :  21275

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

A proposed Currency Convertibility Fund,backstopped by a contingent credit from the InternationalDevelopment Association (IDA)-the World Bank'sconcessionary window for the world's poorestcountries-has been designed for the Songo Songo GasDevelopment and Power Generation Project in Tanzania. Thefund is a transitional mechanism aimed at supporting theTanzanian government's efforts to attract foreignequity in circumstances where the private sector perceives ahigh level of risk and is otherwise unwilling to invest. Thefund may be a replicable mechanism that, by mitigatingsovereign risks that investors are unwilling to bear andunable to hedge against, could help catalyze foreign equityinvestment in other IDA countries and in projects thatgenerate local currency.