Lloyds Bank (BLSA) Limited - Argentina Branch

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MIGA issued $45 million in coverage to Lloyds Bank Plc of the United Kingdom for its shareholder loan to its wholly owned branch subsidiary in Argentina. MIGA insurance covers the loan against the risks of transfer restriction, expropriation, and war and civil disturbance. The project will expand residential mortgage lending operations of BLSA. It also expanded MIGA's collaboration with the private insurance industry and Lloyd's of London, in particular, in providing political risk insurance to foreign investors. MIGA signed its first reinsurance agreement with ACE Global Markets Syndicate 488/2488 of Lloyd's of London for this project. The $31 million agreement was groundbreaking as it was the first long-term (15 year) Lloyd's agreement with a multilateral insurer. Reinsurance allowed MIGA to provide adequate coverage for this project, which will support the construction industry, the fastest-growing sector in the Argentine economy. The funds were lent through Lloyds Bank's network of 51 offices in Argentina for residential mortgages. The project will help to create a large number of jobs in the construction industry and will have significant downstream effects, such as increasing demand for manufacturers of building products, furniture, household appliances, and related consumer goods.

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