A member of the World Bank Group, the International Finance Corporation provides financing for private enterprise investments in developing countries. That’s where IFC comes in—we have more than 60 years of experience in unlocking private investment, creating markets and opportunities where they’re needed most.
Because interest is typically deductible, a CFO can significantly reduce a group’s overall tax bill by borrowing disproportionately in countries with high tax rates and lending the excess cash to operations in countries with lower rates. 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. A strong and engaged private sector is indispensable to ending extreme poverty and boosting shared prosperity. It also offers advice to governments on infrastructure development and public-private partnerships. The IFC makes advances in the form of long-term loans or invests in... Resources of International Finance Corporation. For example, a report by Other criticism focuses on IFC working excessively with large companies or wealthy individuals already able to finance their investments without help from public institutions such as IFC, and such investments do not have an adequate positive development impact. Institutional differences across a company’s operations allow plenty of scope for creating value through wise financing decisions. Further IBRD can only make a loan but it cannot participate in the quality of the project financed. CFOs can also exploit tax differences by carefully timing and sizing the flows of profits from subsidiaries to the parent. International finance … IFC was established in 1956 with the specific purpose of financing private enterprises. The resources of IFC consist of capital contributed by its members. IFC's Environmental and social policies, guidelines, and tools are widely adopted as market standards and embedded in operational policies by corporations, investors, financial intermediaries, stock exchanges, regulators, and countries. Its advisory services portfolio included 642 projects valued at $820 million in 2011, compared to 736 projects at $859 million in 2010. It prioritizes the encouragement of reforms that improve the trade friendliness and ease of doing business in an effort to advise countries on fostering a suitable investment climate. Its goals are to increase The IFC is owned and governed by its member countries but has its own executive leadership and staff that conduct its normal business operations. The IFC's total investment program was reported at a value of $18.66 billion for fiscal year 2011. The International Finance Corporation was established in July 1956, with the specific subject of providing finance to the private sector. In its fiscal year 2010, the IFC invested $12.7 billion in 528 projects across 103 countries. The IBRD loans are available only to member country governments or with the guarantee of member-country governments. It is a The corporation is assessed by an independent evaluator each year. The project which IFC proposes to assist should be an economically viable unit and beneficial to the economy of the member-country.Normally the financial assistance from the IFC for a unit would not be less than $ 1 million and not more than $ 20 million. The Board of Governors of the IBRD also constitute the Board of Governors of the IFC. Members of the World Bank are eligible for its membership. The corporation's total investments in 2011 amounted to $18.66 billion. An example often cited by NGOs and critical journalists is IFC granting financing to a Saudi prince for a five-star hotel in Ghana.The concept was nonetheless controversial in the US, where some business interests were uncomfortable with the public ownership of private firms.In 2007, IFC bought 18% stake in the Indian Financial firm, The IFC is governed by its Board of Governors which meets annually and consists of one governor per member country (most often the country's finance minister or treasury secretary).IFC's Chief Executive Officer oversees its overall direction and daily operations.Although the IFC coordinates its activities in many areas with the other World Bank Group institutions, it generally operates independently as it is a separate entity with legal and financial autonomy, established by its own Articles of Agreement.The IFC makes loans to businesses and private projects generally with maturities of seven to twelve years.Though loans have traditionally been denominated in Although the IFC's shareholders initially only allowed it to make loans, the IFC was authorized in 1961 to make equity investments, the first of which was made in 1962 by taking a stake in FEMSA, a former manufacturer of auto parts in Spain that is now part of Through its Global Trade Finance Program, the IFC guarantees trade payment obligations of more than 200 approved banks in over 80 countries to mitigate risk for international transactions.The IFC operates a Syndicated Loan Program in an effort to mobilize capital for development goals.
Its core mobilization, which consists of participation and parallel loans, structured finance, its Asset Management Company funds, and other initiatives, grew from $5.38 billion in 2010 to $6.47 billion in 2011. The IFC's new international borrowings amounted to $8.8 billion in 2010 and $9.8 billion in 2011.In addition to its investment activities the IFC provides a range of advisory services to support corporate decisionmaking regarding business, environment, social impact, and sustainability.