international bank for reconstructing and development presentation export finance project for mcom i year

1. INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPMENT(IBRD)
 By-Himangi Gupta
M.Com 1st year

2. FUNCTIONS OF IBRD
○ The institution provides a combination of financial resources,
knowledge and technical
services, and strategic advice to developing countries, including middle
income and
credit-worthy lower income countries.
Supports long-term human and social development that private creditors
do not finance.
○ Preserves borrowers' financial strength by providing support in times
of crisis, when poor people are most adversely affected.
○Promotes key policy and institutional reforms (such as safety net or anti-
corruption reforms).
○ Creates a favorable investment climate to catalyze the provision of
private capital.
○ Facilitates access to financial markets often at more favorable terms
than members can achieve on their own.

3. IBRD SERVICES
○ TheWorld Bank Group works with middle income countries simultaneously as
clients ,share holders, and global actors.
○ IBRD is providing innovative financial solutions, including financial products (
loans, guarantees, and risk management products) and knowledge and advisory
services to governments at both the national and sub-national levels.
○ IBRD finances projects across all sectors and provides technical support and
expertise at various stages of a project.
○ IBRD’s financial products and services help countries build flexibility to shocks
by facilitating access to products that diminish the negative impact of currency,
interest rate, and commodity price volatility, natural disasters and extreme
weather.
○ IBRD’s financing supplies borrowing countries with needed financing and also
serves as a vehicle for global knowledge transfer and technical assistance.

4. IBRD FUNDING: HOW IBRD GETS FINANCE FOR ITS FUNCTIONING
○ IBRD raises most of its funds in the world's financial markets. In fact, in these markets, IBRD is
known simply as theWorld Bank.
○ IBRD provided more than $500 billion in loans to alleviate poverty around the world since 1946,
with its shareholder governments paying in about $14 billion in capital.
○ IBRD has maintained a triple-A rating since 1959. Its high credit rating allows it to borrow at low
cost and offer middle-income developing countries access to capital on favorable terms -- in larger
volumes, with longer maturities, and in a more sustainable manner than world financial markets
typically provide.
○ IBRD earns income every year from the return on its equity and from the small margin it makes
on lending.This pays for IBRD's operating expenses, goes into reserves to strengthen the balance
sheet, and provides an annual transfer of funds to IDA, the fund for the poorest countries.
○ IBRD issues bonds in international capital markets to support sustainable development.
○ In fiscal 2015, IBRD raised $57.7 billion by issuing bonds in 21 currencies.
○ Its standing in the capital markets and its financial strength allowed IBRD to borrow these large
volumes on very favorable terms.
○ As a cooperative institution, IBRD seeks not to maximize profit but to earn enough income to ensure
its financial strength and sustain its development activities. Of fiscal 2015 allocable net income, the
Board of Executive Directors recommended to the Board of Governors the transfer of $650 million to
IDA and the allocation of $36 million to General Reserve.

5. INDIA & IBRD: A Sustainable Relationship
○ India is a member of four of the five constituents of the World Bank Group.
○ International Bank for Reconstruction and Development(IBRD),
○ International Development Association (IDA),
○ International Finance Corporation (IFC)
○ Multilateral Investment Guarantee Agency (MIGA).
○ International Centre for Settlement of Investment Disputes (ICSID) [India is not its
member].
○ India is one of the founder members of IBRD, IDA and IFC.World Bank assistance in
India started from 1948 when a funding for Agricultural Machinery Project was approved.
○ First investment of IFC in India took place in 1959 with US$ 1.5 million.
○ India became a member of MIGA in January 1994.
○ India has an Executive Director, in the Board of Directors of IBRD / IFC / IDA/ MIGA.
○ The Executive Director from India represents a constituency comprising of four
countries: India, Bangladesh, Bhutan and Sri Lanka.
Mr. M. N. Prasad represents India in the Board of Directors w. e. f. 30th September 2011.
Mr. Kazi M.
Aminu l Islam from Bangladesh is currently the Alternate Executive Director for this
constituency.