The International Finance Corporation (IFC) is an international institution of finance that provides its services in underdeveloped Countries to encourage their private sector development. This institution provides services like management, investing, and advisory to low-developed countries and then gets profit from these investments by performing various services in these countries.
This Financial corporation is a member of the World Bank Group and acts as a right arm for them. This department was established in 1956. The major objective of this department is to provide opportunities for people to escape from poverty and give them a better lifestyle with all basic life needs. This organization works in more than 183 countries and performs various services like supporting their economy, providing jobs, developing markets and business places, and many other services. Then get profit from these projects.
History
The International Monetary Fund and World Bank were established in 1944 at the Bretton Woods Conference. At that time World Bank consisted of only one International Bank for Reconstruction and Development and with the passage of time, this bank started to develop so high, and now it working as a whole group at the global level. In 1954, the IFC entered this group and at that time this was considered would work for only the private sector and not for any government but now this time this is the main department of the World Bank. In the early stage of this department, many people thought that it would act like a private firm sector, and in 1956, this became the operational leadership in various countries. In 2007, IFC brought about an 18% stake from the Indian finance Firm.
Functions of International Finance Corporation
IFC performs various functions on an international scale which are the following:
Investment services
Investing Services are the major function of IFC and this consists of various services like trade finance, Loan, Syndicated loans, Equity, risk management services, liquidity management, and treasury services. In 2010, this department of IFC invested more than 12.6 billion U.S. dollars in 103 countries in various projects of about 255 projects and earned a profit of about 4.9 billion USD.
Assets Management Company
In 2009, IFC established a new department of Assets Management Company LLC ( IFC AMC ) these companies manage all the capital funds that were invested in these markets. IFC acts in these projects as a third company that invests and manages all the assets of emerging businesses and markets.
Advisory Services
IFC also provides a wide range of advisory services that support Corporate decisions of various businesses, social impacts, environment, and many other services. IFC proactively combating climate change projects and attracted more than 29 trillion in this sector in 2030.