International Finance Corporation (IFC)

International Finance Corporation Latest News

Recently, the International Finance Corporation (IFC) has decided against investing in a proposed $40 million loan for waste-to-energy (WTE) incineration projects in Gujarat, India.

About International Finance Corporation

• It is the private lending arm of the World Bank.
• It was established in 1956 as a member of the World Bank Group, focused on investing in economic development.

Functions of International Finance Corporation

• It provides financing of private-enterprise investment in developing countries around the world, through both loans and direct investments.
• It also provides advisory services to encourage the development of private enterprises in nations that might lack the necessary infrastructure or liquidity for businesses to secure financing.
• It mobilizes capital from other lenders and investors through loan participations, parallel loans and other means.
• Governance: It is owned and governed by its member countries. It is a corporation whose shareholders are member governments that provide paid-in capital and have the right to vote on its matters.
• The President of the World Bank Group is also the President of the IFC.
• Headquarter: Washington, D.C

International Finance Corporation FAQs

Q1: What is the International Finance Corporation?

Ans: It is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries.

Q2: What is the role of IFC in India?

Ans: IFC has a leading role in financing infrastructure projects in India and advising client governments on public-private partnerships. 

Source: DTH