Washington D.C., February 24, 2026—The World Bank Group has launched a new insurance-backed facility to expand lending to small and medium-sized businesses in emerging markets, supporting job creation and private sector growth.

Under the facility, participating insurers share credit risk on a portion of eligible loans made by IFC, the World Bank Group’s private sector arm, freeing up capital so IFC can lend more to commercial banks and other financial institutions. The facility allows IFC to mobilize private credit insurance and expand access to finance for micro, small and medium-sized enterprises (MSMEs), which make up over 90 percent of all firms and account for around 70 percent of total employment.