(Ecofin Agency) - Loan and investment guarantees act as a powerful catalyst in mobilizing essential capital to stimulate economic growth and improve public services in developing countries.

The World Bank Group announced on July 1 the launch of a new centralized loan and investment guarantee platform to enhance financing mobilization for developing countries and high-risk projects.

"Starting today, the World Bank Group (WBG) guarantee platform is open for business. The platform, housed at the Multilateral Investment Guarantee Agency (MIGA), brings together products and experts from the World Bank, International Finance Corporation (IFC), and MIGA for simplicity, efficiency, and speed. It aims to boost WBG annual guarantee issuance to $20 billion by 2030," the institution said, emphasizing that the new platform is set to revolutionize the development finance landscape.

This platform, overseen by MIGA, will provide three types of coverage: credit guarantees for loans in both public and private sectors, trade finance guarantees for transactions involving public entities, and political risk insurance for private sector projects or public-private partnerships.

Until now, the World Bank Group provided its clients with 20 guarantee solutions scattered across the institution's various subsidiaries, each with different rules, standards, and processes. This fragmentation and multiplicity have limited their potential and accessibility.