IFC = international finance corporation

Posted: July 14, 2010 in INO
  1. the IFC was created on may/25/1955 .
  2. it came into force on July/20/1956
  3. IFC became a UN specialized agency by an agreement in 1957.
  4. its HQs is situated in Washington DC.
  5. At present, the total number of members in IFC is 174.
  6. Membership of IFC is opened only for those who is the members of IBRD.
  7. The basic objective of IFC: further economic development by encouraging the growth of productive private/partially governmental enterprise.
  8. The IFC works as both a multilateral development bank & a private financial institution.
  9. The IFC concentrates its efforts in 5 principle areas –

i)                    investments

ii)                  promotion

iii)                capital markets programme

iv)                 syndication

v)                   technical assistance.

  1. the resource for IFC comes from subscriptions by its member-countries & from accumulated earnings.
  2. it also borrows from world bank.
  3. most of the funds for lending activities are raised through bond issues in the international financial markets.
  4. IFC provides financing by subscribing shares, usually in conjunction with a long-term loan.
  5. it also seek other investors to provide a substantial part of the capital required for a project.
  6. IFC generally mobilizes substantial project financing from other sources either indirectly, in the form of co-financing/directly, through loan, syndications & underwriting of debt & equity issues in domestic & international markets.
  7. IFC has established itself as the largest source of direct financing for private-sector projects in developing countries.
  8. as an affiliate of the IBRD, IFC has the same institutional structure.
  9. the president of the IBRD is also the president of IFC.
  10. the IFC has its own operating & legal staff but draws on the IBRD for administrative & other services.
  11. the daily operations are directed by an executive vice-president.

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