- Important International institutions, agencies and fora, their structure, mandate.
International Finance Corporation (IFC)
What to study?
For Prelims and Mains: IFC- composition, objectives, functions and significance.
Context: Insolvency and Bankruptcy Board of India signs a Cooperation Agreement with the International Finance Corporation to further build the capacity of the Insolvency Professionals, and Insolvency Professional Agencies for the purposes of the effective implementation of the Insolvency and Bankruptcy Code, 2016 among others.
About the International Finance Corporation (IFC):
The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset management services to encourage private sector development in developing countries.
- It is a member of the World Bank Group and is headquartered in Washington, D.C., United States.
- It was established in 1956 as the private sector arm of the World Bank Group to advance economic development by investing in strictly for-profit and commercial projects that purport to reduce poverty and promote development.
- The IFC is owned and governed by its member countries, but has its own executive leadership and staff that conduct its normal business operations.
- It is a corporation whose shareholders are member governments that provide paid-in capital and which have the right to vote on its matters.
- It offers an array of debt and equity financing services and helps companies face their risk exposures, while refraining from participating in a management capacity.
- The corporation also offers advice to companies on making decisions, evaluating their impact on the environment and society, and being responsible.
- It advises governments on building infrastructure and partnerships to further support private sector development.