Definition Of

International Financial Corporation (IFC)

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.

Share it:

More from this Section

  • Contingency graph
    Contingency graph refers to a graph that shows the net profit to a speculator in currency options under various exchange rate scenarios.
  • The Asset Market Approach to Forecasting
    The asset market approach assumes that whether foreigners are willing to hold claims in monetary form depends on an extensive set of investment considerations or drivers.
  • Ahead of itself
    Ahead of itself is an in context of general equities, refers to equities that are overbought or oversold on a fundamental
  • Primary capital
    Primary capital is the sum of total equity capital, the allowance for possible loan losses, mandatory convertible debentures, and minority
  • Mortgage-banking companies
    Mortgage-banking companies is the financial service firms that acquire mortgage loans for eventual resale to longer-term lenders (e.g.,
  • Agency cost view
    Agency cost view is the argument that specifies that the various agency costs create a complex environment in which total agency
  • Collecting Bank
    Collecting Bank is any bank, other than the remitting bank, involved in processing the collection.