How is the volume of guarantees available to a country determined?
Generally, the potential use of guarantees is considered within the framework of the Bank’s country assistance strategy-formulated jointly by the member country and the Bank. The Bank is willing to accommodate guarantee operations in its lending program to meet specific project needs if the project is consistent with the Bank’s overall country assistance strategy. However, since the possibility of private commercial financing depends on specific market circumstances at a given time, it is not possible to forecast the volume of guarantees too far in advance. Nor will it always be possible to forecast in advance the pipeline of private sector projects that may require Bank guarantees.
