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Cover Policy

The decision of the IMC whether to grant an investment guarantee does not only depend on the investment character but also on the economic viability and the eligibility of an investment project and above all a sufficient legal protection for the investment in the host country.

The German government is continually improving the legal protection requirements - and consequently the protection and coverage for German investors abroad - by entering into new or updating existing investment protection treaties (IPT).

In addition to legal protection the IMC reviews and determines the current economic and political situation of a country for the purpose of defining the requirements to be fulfilled by investors and for stipulating the terms of coverage. Embassies and consulates are regularly included in the evaluation of the current situation of a country. Such evaluations are complemented by information and experience provided by investors, international chambers of commerce and various trade associations or organisations cultivating relations with foreign countries.

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