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EDCF launched the Guarantee Program in 2013 to catalyze private sector investment in emerging-market infrastructure projects by mitigating critical government performance risks that private lenders are reluctant to assume. EDCF's extensive experience with ODA loans and its solid partnership with developing countries makes it well positioned to assume such risks.
While offering protection to private lenders against critical perceived political risks, the EDCF Guarantee Program also allows developing countries to mobilize sufficient private sector funding, through improved access to international debt and capital markets, to meet their development needs.