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
- Hague-Visby Rules
Hague-Visby Rules are set of rules amending The Hague rules, published in 1968, which have not been implemented by as many
- Par Value
Par Value is the value of a security when it is issued. For bonds and preferred stock, par value is equivalent to face value.
- Forward contracts
Forward contracts is the agreements that can be used when a customer anticipates a future need to acquire foreign currency or expects to receive foreign currency; a bank negotiates a contract with
- Euro medium-term notes (EMTNs)
The Euro medium-term note is the latest major entrant to the world’s debt markets. The EMTN effectively bridges the maturity gap between ECP and the long-term ...
- Indifference point
Generally to equal EPS of two alternative financial plan need to any amount of EBIT, analysis that is "Indifference Point".
- Serial Bonds
Serial Bonds are bonds that mature at specified intervals.
Derivatives are financial contracts whose values are derived from the values of underlying assets. A derivative can be defined as a financial instrument ...