PwC has been appointed by the German government to manage its investment guarantee scheme.
The German government’s investment guarantees are used to secure German investors against political risks abroad; commercial risks are not covered. Investment guarantees are used for risk provisioning. They are an important component in risk management and thus part of a company’s risk control processes. They also act as collateral, making it easier to obtain credit from banks to refinance foreign investment. The German government provides German foreign investors with political support in crisis situations by using investment guarantees to intervene in their favour to prevent or limit damage.
- advising companies and banks on commercial and legal aspects of covering the risks of foreign investments
- supporting the German government in negotiating and concluding investment promotion agreements
- analysing project, financing and security packages from a commercial and legal perspective, as well as adjusting the packages in line with specific projects in dialogue with investors and banks
- analysing the political risks in the target countries and the development policy, social and environmental impact of the projects
- providing expert assessments of projects as a basis for decision-making by the German government
- monitoring of projects from a commercial and environmental perspective
- support for the German government in claims prevention and claims mitigation (pre-claims phase)
- analysis of advent of risks, assessment of basis of claims, expert assessment of claim, processing compensation payments
- advising and representing the German government during international cooperation with investment insurers of other countries and ensuring the interests of the German government are upheld in cooperation agreements relating to internationally financed projects
You can find more information here.