The International institution of finance that provides many offers like assets-management services, and investments in low-developed countries in this world. This International Finance Corporation is a main member of the World Bank Group. This department was established in 1956 and its headquarters is present in Washington, D.C. in the U.S.A.
The IFC is a right arm of the World Bank Group that provides investment in lower countries and gains profits from them by performing many projects in these companies like decreasing the level of poverty and in this regard providing an important development in these countries. This finance institution provides lower countries with people to improve their lives by providing them with basic living standards needs and various job opportunities, promoting accessible and competitive marketing in these countries. There are about 186 countries that are members of that international corporation and its managing director is Makhtar Diop.
In 2009, the International Finance Corporation started focusing on its goal to increase agricultural production and opportunities, improve education and health system, help small businesses grow, invest in the health climate, and increase access to financing for business clients and microfinance. This international finance corporation helps companies face their risk that was participated from the management capacity. The IFC also helps many companies in evaluating their impact on the society and environment, making decisions, and also responsible for all the decisions. This also advises governments of different countries to build a partnership with others for the development of Private Sectors.
International Finance Corporation’s Functions
IFC performs many functions at the international level and some of them are discussed below
Advisory Services
IFC provides many advisory services that help business companies make decisions, regarding social impacts, sustainability, and the environment. This helps many countries to make a decision about the partnership with other companies and with the aid of them they can perform many private sector developments in this way IFC is responsible for all the things and advises.
Asset Management Company
In 2009, the International Finance Corporation established the Assets Management companies (IFC AMC). These companies manage all the capital funding that was invested in emerging markets of those countries. The AMC manages all these funding and capital investments under IFC and these are also responsible for them. These AMC goals are to increase capital for investments that were not ever generated by IFC.
Investment Services
The investment services of IFC include Trading, Finance, Loans, Equity, Syndicated loans, client risk management services, liquidity management, and Securitized finance. For this purpose, it performs various functions. In 2010, The IFC invested more than $12.7 Billion in more than 526 projects in more than 102 countries across the world. The IFC provides loans for private projects and for small businesses with a special offer of maturities of six to twelve years. This also provides a long-term loan and an extended grace period if the client demands for it. Many Financial intermediaries and Leasing companies take loans from the IFC in this regard and then return after a specific period of time.