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
During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use supply and demand diagrams, how the following markets are affected in terms of pr

#question.ccccc

Define and explain the following economic terms: Economics, Microeconomics & Macroeconomics Positive vs.  Normative Economics Law of Diminishing Marginal Utility Opport

The U.S. automobile industry, the soft-drink industry, the brewing industry, segments of the fast-food industry, and airplane manufacturers. Oligopoly will usually produce less tha

The Budget Line The line BB gives the persons budget constraint. It is described by the linear equation c + wl = w; which can be rewritten as c = w - wl: The budget li

dicuss the relevance of studing production theory and analysis inn your career as a student of manegerial economics

The economy, however, is facing inflationary pressures. To deal with the macroeconomic problem, the government uses expansionary fiscal policy to decrease taxes and, as an indirect

what is marginal costs?

A monopolist''s demand curve is P=100-2q. find his MR function. at what price is MR zero

Control of Monopolies and Restrictive Trade Practices Monopoly hampers economic growth by lowering output and increasing prices and has an anti-social impact. In India, the Monopo