Overseas Private Investment Corporation

Overseas Private Investment Corporation

Summary of Overseas Private Investment Corporation

An independent agency of the U.S. government formed in 1971 to stimulate private investment in overseas projects, usually in developing countries. In furthering this objective, OPIC provides: (1) cost assistance, up to 75 percent, in the establishment of the foreign venture; (2) direct loans ranging from fifty thousand to four million dollars to firms smaller than the Fortune 1000 for equity participation in offshore programs, with loan guarantees for larger sums; and (3) insurance for losses sustained by U.S. investors in foreign equity ventures as the result of political risks. OPIC services are available only to U.S. citizens and U.S.- controlled corporations.

(Main Author: William J. Miller)

Overseas Private Investment Corporation (OPIC) in relation with International Trade

In the context of trade organizations, Christopher Mark (1993) provided the following definition of Overseas Private Investment Corporation (OPIC): An agency of the US government established in 1971 to promote private investment in overseas projects, especially in developing countries. OPIC provides start-up assistance as well as direct loans and loan guarantees for equity participation in foreign ventures, but its primary activity is insuring against losses sustained by US investors in foreign equity ventures as the result of political risks (Sec. 11). OPIC services are available only to US citizens and US- controlled corporations.

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