International Development Associations – International Finance Corporation – The International Debt and Country Analysis – Recent Changes in International Financing.

1. Ms. Jissy.C
Assistant Professor
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Ms.Jissy.C, Assistant Professor

2. UNIT – IV
International Development Associations – International
Finance Corporation – The International Debt and
Country Analysis – Recent Changes in International
Financing.
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Ms.Jissy.C, Assistant Professor

3.  What is IDA?
The International Development Association (IDA) is an
international financial institution which offers
concessional loans and grants to the world's poorest
developing countries. The IDA is a member of the World
Bank Group and is headquartered in Washington, D.C.,
United States. It was established in 1960 to complement
the existing International Bank for Reconstruction and
Development by lending to developing countries which
suffer from the lowest gross national income, from
troubled creditworthiness, or from the lowest per capita
income.
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4.  It offers concessional loans and grants to the world’s
poorest developing countries
 Established in the year 1960
 Headquarters at Washington D.C.
 Membership of 173 countries
 President is David Malpass
 It is the world banks fund for the poorest countries
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6.  INDIA AND IDA
 India has become the largest borrower from the International
Development Association (IDA), the soft loan affiliate of the World
Bank, which helps the world’s poorest countries, with a total
borrowing of $2,578 million.
 India is also now the third largest borrower of the International
Bank for Reconstruction and Development (the World Bank), with a
total portfolio of $21.9 billion (Rs 98,590 crores).
 Among the states in the country, Tamil Nadu is now the largest
borrower from the World Bank, with an exposure of $2.1 billion
spread over six projects.
 According to the bank’s FY10 Top Ten IDA borrowing countries,
India tops the table with $2,578 million IDA lends money to India on
concessional terms.
 This means IDA credits have no interest charge and repayments are
stretched over 35 to 40 years, including a 10-year grace period.
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7.  International Finance Corporation
 The International Finance Corporation (IFC) is an international
financial institution that offers investment, advisory, and asset-
management services to encourage private-sector
development in less developed countries. The IFC is a member of
the World Bank Group and is headquartered in Washington, D.C. in
the United States.
 It was established in 1956, as the private-sector arm of the
World Bank Group, to advance economic development by
investing in for-profit and commercial projects for poverty
reduction and promoting development. The IFC's stated aim is
to create opportunities for people to escape poverty and
achieve better living standards by mobilizing financial
resources for private enterprise, promoting accessible and
competitive markets, supporting businesses and other private-
sector entities, and creating jobs and delivering necessary
services to those who are poverty stricken or otherwise
vulnerable
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8.  Established in 1956 185 member countries
 It promotes sustainable private sector investment in
developing countries
 To join IFC a country must first be a member of IBRD
 Since 1956, IFC has leveraged $285 billion in financing for
businesses in developing countries.
 Reach millions of people in over 100 countries
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9.  IFC’s Purpose
 Promote open and competitive markets in developing
countries.
 Support companies and other private sector partners.
 Generate productive jobs and deliver basic services
 Members of IFC
 IFC's entire share capital was held by 182 countries.
 To join the IFC, a country must first be a member of the
World Bank.
 States is the largest single shareholder, with 23.66 percent
of votes, by Japan (5.87 percent), Germany (5.36 percent),
the United Kingdom (5.04 percent), and France (5.04
percent)
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10.  IFC’s Three Businesses
 Investment Services: Short & long-term loans & guarantees
(including in selected local currencies), syndicated loans,
equity & equity-type products, trade finance, structured
finance, risk management products, and sub-national finance
 Advisory Services: Access to finance, investment climate,
corporate advice, environmental & social sustainability, and
infrastructure
 Asset Management Company: Launched in 2009, invests
third-party capital in a private equity fund format
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11.  SERVICES
 1. Loans
 2. Equity
 3. Trade and Supply Chain Finance
 4. Syndications
 5. Treasury Client Solutions
 6. Venture Capital
 7. Advisory
 8. Asset Management
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12.  EXPERTISE
 1.Agribusiness and Forestry
 2. Financial Institutions
 3. Funds
 4. Health and Education
 5. Infrastructure
 6. Manufacturing
 7. Oil, Gas, and Mining
 8. Public-Private Partnerships
 9. Telecommunications, Media and Technology
 10. Tourism, Retail and Property
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13.  OBJECTIVES
 1. To invest in productive private enterprises, in association
with private investors, and without government guarantee of
repayment, in cases where sufficient private capital is not
available on reasonable terms.
 2. To serve as a clearing house to bring together investment
opportunities, private capital (both foreign and domestic) and
experienced management.
 3. To help in stimulating the productive investment of private
capital, both domestic and foreign.
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15.  NDIA’S ROLE IN IFC
 1. India is one of the founder members of IBRD, IDA and IFC.
 2. First investment of IFC in India took place in 1959 with US$
1.5 million. India became a member of MIGA in January 1994.
 3. 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. Aminul Islam from Bangladesh is
currently the Alternate Executive Director for this
constituency
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16.  RECENT CHANGES IN INTERNATIONAL FINANCE
 Countries are Re-balancing Their Import Export Trade
 There is New Found Cooperation Among Countries
 There Exists Growth in Export Opportunities in India
and South America
 There is a Rising Popularity of Euro Markets
 There is a Visible Emergence of Multi-National
Corporations from Emerging Economies
 There is an Increase in Cross Border Mergers and
Acquisition Based Activities
 There is a Deregulation of the Financial Markets
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17.  International Debt
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