Important Details you should know about International Finance Corporation (IFC)

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The International Finance Corporation (IFC) is an affiliate of the World Bank. It was established on 20th July 1956, having headquarters in Washington, with the object of assisting private enterprises in developing countries by providing them with risk capital. IFC is a member of World Bank Group.

Objectives of IFC :

The main objectives or functions of IFC are as follows

1. Investing in private productive enterprises in association with private investors.
2. The IFC makes an attempt to bring together investment opportunities, domestic and foreign private capital as also experienced management.
3. The IFC makes an attempt to promote investment flow of private capital.
4. The IFC renders assistance for the development of capital markets in LDCs.

Membership : Although the IFC is an affiliate of the World Bank, it is not essential that all the members of the world bank will be the members of the IFC. But, it is only the members of the World Bank who can become members of the IFC. As of today (15th August 2014) the total membership of IFC is 184 (South Sudan joined as the 184th member on 18th April 2012). To join IFC, a country must attain the following qualities

• A member of the World Bank (IBRD);
• Have signed IFC's Articles of Agreement; and
• Have deposited with the World Bank Group's Corporate Secretariat an Instrument of Acceptance of IFC's Articles of Agreement.

The corporation started in July 1956, with an authorized capital of 10 million dollars. The capital has been increased form time to time to meet the increasing requirements of the corporation. The current  authorized capital stock of the Corporation had been increased to $2,580,000,000 divided into 2,580,000  shares of $1,000 each. The IFC's share capital which is paid in is provided by its member countries and voting is in proportion to the number of shares held.

The IFC provides finance only to private undertakings in member countries. It is an agency which provides both loan capital as well as risk capital to private industrial undertakings. In addition to the provisions of risk capital from its own fund, the corporation also tries to mobilize domestic as well as foreign capital for the benefit of new private industrial undertakings.

Fast Facts on IFC

• Head Quarters : Washington, D.C.
• Established on - 20th July 1956
• CEO - Jin-Yong Cai
• Current Membership - 184 Members
• New Member - South Sudan on 18th April 2012 

That's all for now friends. In our next post, we shall discuss about the World Bank. Happy Reading :)

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