In 1956 the International financial corporation (IFC) was established to promote private enterprise within countries. Composed of a number of member nations, the IFC works to promote economic development through the private rather than the government sector. It not only provides loans to corporations but also purchases stock, thereby becoming part owner in some cases rather than just a creditor. The IFC typically provides 10 to 15 percent of the necessary funds in the private enterprise projects in which it invests, and the remainder of the project must be financed through other sources. Thus, the IFC acts as a catalyst, as opposed to a sole supporter, for private enterprise development projects. It traditionally has obtained financing from the World Bank but can borrow in the international financial markets.
More from this Section
Beneficiary is the seller or exporter in whose favour the documentary credit has been established.
- Branch Banking Organizations
Branch banking is a system where the banking business is carried on by single bank with a network of branches throughout the length and.......
- Balloon Payment
Balloon Payment is a large payment that may be charged at the end of a loan or lease.
- Non commercial credit
The loans that are distributed for the non-commercial purpose is called non-commercial credit.
- Tax Incentives
Tax Incentives is tax benefits. Most tax incentive measures fall into one or more of the following categories: tax exemption (tax holiday);
- Pre-shipment Finance
Pre-shipment Finance is financing of goods whilst in the manufacturing/collation stage.
- Overdraft on Current Account
An overdraft allows to borrow money for a short period of time through current account. So, it is a credit facility for a current account customer.