ABSTRACT
On the whole, the sponsor arrangement is considerably more complicated to operate that the procedures generally used by national insurance institutions. The World Bank’s criticism of national guarantee schemes conveys the impression that its suggested solution to the problem will bring additional advantages for all parties involved, even though its complementary nature is stressed explicitly. A series of arguments can be advanced in favour of the proposed close link between the agency and the World Bank. One can also agree with the view that the link with the World Bank would enhance the international standing of the new organisation. Many developing countries oppose the link between the Bank and the agency because they fear that their investment policies might have adverse repercussions on the Bank’s willingness to lend to them. This could also have implications for borrowing from other official and private sources of finance owing to the World Bank’s leading role in multilateral development financing.
