Working of ifc, Microeconomics

Working of IFC:

The IBRD loans are available only to member-country governments or with the guarantee of member-country governments. Further, IBRD can only make a loan but it cannot participate in the equity of the financed project. IFC was established in 1950 with the specific purpose of financing private enterprise. It is an affiliate of the IBRD. The Board of Governors of the IBRD also constitute the Board of Governors of the IBRD also constitute the Board of Governors of the IFC. But it is a separate entity with funds kept separate from those of the IBRD. 

The purpose of the IFC is to further economic development by encouraging growth of private enterprise in member-countries, particularly in the less-developed areas, thus supplementing the activities of the IBRD. The IFC, therefore:

• Invests in private enterprise in member countries, in association with private investors and without government guarantee, in cases where sufficient private capital is not available on reasonable terms.

• Seek to bring together investment opportunities, private capital of both foreign and domestic origin, and experienced management; and 

The IFC makes advances in the form of long-term loans or invests in the equity shares in a wide variety of productive private enterprises in developing countries. It particularly encourages joint ventures between developed and developing countries, the technical skill available with the former combining with the resources available with the latter. The project which IFC proposes to assist should be economically viable one and beneficial to the economy of the member-country. IFC's investment normally does not exceed 40% of the total investment of the enterprise. In case of its investment by equity contribution, it does not exceed 25% of the share capital. The interest charged on advances varies depending upon the proposal and status of the borrower.

The resources of the IFC consist of capital contributed by its members. It can also borrow from the World Bank for the purpose of lending. It can also float its own loans in world capital markets. 

The IFC had a slow beginning and much of its assistance was concentrated in Latin and Central America Countries. But in recent years it has diversified its area of operation and many developing countries stand benefited.

Posted Date: 11/9/2012 6:48:08 AM | Location : United States







Related Discussions:- Working of ifc, Assignment Help, Ask Question on Working of ifc, Get Answer, Expert's Help, Working of ifc Discussions

Write discussion on Working of ifc
Your posts are moderated
Related Questions
Monopoly and Oligopoly help?!? 1. Your firm sells a perfume. The daily demand for your perfume estimated by your economists is given by P=150-5Q Your marginal cost is constant at $

The Money Creation Process is explained below: We can now study the money supply or the creation process. Suppose the government wishes to buy pencils worth Rs. 10 for the offi

#question.describing risk,preference towards risk, the demand for risky assest.

How to calculate new profit earn by a firm in oligopoly if another firm cheat

how is price and output equilibrium determined in Williamson''s model of managerial discretion?

using demand and supply curves explain how shortage and surplus are created

Why narrowness of definition of a commodity may influence price elasticity of demand

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the commodi

Perfectly Competitive Markets * Characteristics of Perfectly Competitive Markets  1. Price taking  2. Product homogeneity  3. Free entry and exit * Price Taking

What factors shift the Aggregate demand curve to right and what factors shift the AD curve to left?  AD shifts to the right when any component of AD enhances autonomously; e.g