Investment Guarantees of the Federal Republic of Germany

Covered Risks

Investment guarantees offer protection to investors against the loss of shareholder rights, creditor rights, assets or earnings – provided that these losses have been induced by political events or measures in the host country:


Expropriation risk

  • Nationalisation, expropriation or sovereign acts which in their effect are equivalent to expropriation 

War risk

  • War, revolution, riots, armed conflicts or terrorist acts associated with such events

Payment embargoes or moratorium risk

  • Payment embargoes due to a sovereign act

Conversion and transfer risk

  • Impossibility of converting or transferring amounts to the Federal Republic of Germany

Breach of contract risk

  • Breach of legally binding commitments made by the government or other entities directed or controlled by the government, insofar as the project company is entitled to these commitments as well as them being specified in the guarantee policy


The assessment as to whether the aforementioned incidents or measures have occurred or were undertaken is determined according to public international law; in particular investment protection regulations contracted with the host country at the level of public international law and international jurisprudence. In addition, general principles of German law shall apply.

Recent examples from our crisis management and claims activities

Examples from crisis management and claim activities