What is the International Finance Corporation - Finance Study Pool

What is the International Finance Corporation (IFC)?

The International Finance Corporation (IFC) supports private enterprise initiatives across the globe in poor nations by offering loans and direct investments. As a subsidiary of the World Bank, it additionally provides consultancy services to promote the development of private businesses in countries that may lack the infrastructure or liquidity required to obtain finance.

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International Finance Corporation (IFC)

How does the International Finance Corporation (IFC) operate?

The IFC, a founding member of the World Bank Group, is dedicated to making investments in economic growth. It takes pride in being the most prominent organization dedicated to international development, with a focus on the private sector in underdeveloped nations. The IFC also works to guarantee that private businesses in these countries have access to markets and funding.

The IFC's most current goals cover a wide range of topics, including encouraging climate, health, and education policies and sustainable agriculture, expanding small companies access to microfinance, and supporting infrastructure improvements. The 184 nations that make up the IFC's membership manage it, and Washington, D.C. serves as its administrative center.

Also Read: Pakistan's Economy MCQs

A payment of 7.45 percent is paid on the $2.36 billion, or $15.26 million, five-year bond.

In fiscal year 2022, the IFC invested $32.8 billion in both long-term and short-term financing, with external investors contributing $10.6 billion.

A Sample Investment by IFC As an example of its operations, the IFC provided $145 million in funding to support FrieslandCampina's acquisition of a controlling (51%) interest in Engro Foods, the largest dairy processor in Pakistan. Despite being the fourth-largest producer of milk, Pakistan constantly needs better infrastructure and an out-of-date supply network. Nearly 80% of the output of the sector comes from small subsistence farms.

FrieslandCampina has pledged to impart its knowledge and best practices to the majority of dairy processors in Pakistan through Finance Study Pool as well as to the smaller farmers that supply Engro Foods. The main goal is to help these small farmers become more productive and squander less.