The IFC Full Form is International Finance Corporation a global financial organisation that supports the growth of the private sector in underdeveloped nations by providing asset management, advisory, and investment services. The IFC has its headquarters in Washington, D.C. in the United States and is a member of the World Bank Group.
As the private sector division of the World Bank Group, it was founded in 1956 to advance economic development by funding initiatives that would reduce poverty and improve development.
History
At the Bretton Woods conference in 1944, delegates created the World Bank and International Monetary Fund. In 1946, the International Bank for Reconstruction and Development, the only member of the World Bank at the time, started operations. Robert L. Garner voiced his belief that private enterprise might play a significant role in global development when he joined the World Bank in 1947 as a senior officer. In 1950, Garner and his associates recommended creating a new organisation to make private investments in the underdeveloped nations the World Bank assisted.
The World Bank and an international corporation were encouraged to partner to engage in private businesses without relying on government guarantees, without managing those businesses, and with the help of outside investors. In 1955, World Bank President Eugene R. Black said of the IFC that it would not manage the projects in which it invested and that it would only make investments in private companies as opposed to lending money to governments.
IFC Overview
| IFC Full Form | International Finance Corporation |
| Headquarters | Washington, DC, U.S |
| Formation | July 20, 1956 |
| Managing Director | Makhtar Diop |
| Method | Social science research |
| Website | www.ifc.org |
| Official languages | English |
Functions
- Investment services
Loans, equity, trade financing, syndicated loans, structured and securitized finance, client risk management services, treasury services, and liquidity management are all included in the IFC’s investment services. The IFC financed $12.7 billion in 528 projects in 103 countries during its fiscal year in 2010. About 39 per cent ($4.9 billion) of that total investment commitment went toward 255 projects in 58 countries that are members of the World Bank’s International Development Association (IDA).
- Advisory services
The IFC offers a variety of consulting services in addition to its financial activities to help businesses make decisions about their operations, the environment, their social effect, and their sustainability. The corporate guidance provided by the IFC focuses on corporate responsibility, scalability, managerial ability, and governance.
- Asset management company
IFC Asset Management Company LLC (IFC AMC), a wholly-owned subsidiary of the IFC, was founded in 2009 to manage all capital funds to be invested in emerging countries. The IFC, as well as other development funding agencies and other third parties like sovereign or pension funds, mobilise capital, which is managed by the AMC.
How does the International Finance Corporation Works?
As a founding member of the World Bank Group, the IFC was created in 1956 with an emphasis on financing economic growth. It claims to be the biggest global development organisation with a focus on the developing world’s private sector. The IFC also aims to guarantee that private businesses in developing countries have access to markets and funding.
The promotion of sustainable agriculture, increasing small enterprises’ access to microfinance, assisting infrastructure upgrades, and advocating policies related to the environment, health, and education are just a few of the IFC’s most recent declared objectives. The IFC has its headquarters in Washington, D.C., and is administered by its 184 member nations.
Frequently Asked Questions (FAQs)
What is the IFC Full Form?
The IFC Full Form is International Finance Corporation.
When IFC is established?
It is established on July 20, 1956.
What are the functions of IFC?
There are three major functions of IFC:
a) They provide Investment services
b) They provide advisory services
c) They manage all capital funds to be invested in emerging countries.
