International Finance Corporation (IFC)
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The International Finance Corporation (IFC) is a Washington, DC-headquartered organization that promotes private sector investments in developing countries. To obtain assistance from the IFC, countries must become its members. The organization has a total of 181 members. TO become a member of the IFC, a country has to be a member of the World Bank. It is also required to sign the Worlds Articles of Agreement and deposit its Instrument of Acceptance at the Corporate Secretariat of the World Bank Group.
The International Finance Corporation (IFC) is a Washington, DC-headquartered organization that promotes private sector investments in developing countries. To obtain assistance from the IFC, countries must become its members. The organization has a total of 181 members. TO become a member of the IFC, a country has to be a member of the World Bank. It is also required to sign the Worlds Articles of Agreement and deposit its Instrument of Acceptance at the Corporate Secretariat of the World Bank Group. The primary objective of the IFC is the same as that of the World Bank.
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What is the IFC?
The IFC was founded in 1956 and is a member of the World Bank Group. It provides investments to promote the private sector in developing countries. The organization also provides technical assistance and consultations to businesses and government. This is done with the aim of enhancing the standard of living of the people in these nations. The IFC’s advisory services focus on access to finance, business enabling environment, environmental & social sustainability, infrastructure advisory, and corporate advice.
IFC: How It Works
The organization provides loans and equity financing for private sector industries in developing nations. The equity investments are funded from the organization’s retained earnings and paid-in capital. The IFC also helps private companies mobilize financing in the international financial markets. This is made possible because of the IFC’s triple-A ratings, strong shareholder support and considerable capital base.
IFC: Main Countries Involved
Countries that actively contribute to the efficient functioning of the IFC include Australia, Austria, Belgium, Canada, France, Greece, India, Switzerland, the United Kingdom and the United States. Besides these countries, other government entities also support the IFC.
IFC: Achievements
The IFC has successfully launched and promoted projects in different countries. Some of these are the Bujagali Hydro Project, Azerbaijan Advisory Projects, IFC against AIDS, Russia Corporate Governance and the WorldHotel-Link project.
IFC: Pipeline
Some of the important projects in the IFC’s pipeline as of May 2009 are:
- Assistance to Saudi Banks to cope with risks
- Investment in Kazakhstan retail to create jobs and fuel growth
- Trade finance expansion with the Banco de Credito of Bolivia
- Launch of National Strategy for business inspection improvement in Jordan
