IFC to deploy $30 bn to tackle recession

International Finance Corporation (IFC) will double its global trade finance programme to $3 billion, introduce a $3-billion Bank Recapitalisation Fund and mobilise a $1.5-billion Infrastructure Crisis Facility to support private sector in emerging economies fight the global financial crisis.

This follows IFC's earlier decision on December 9 to launch a Sovereign Funds Initiative, which will enable IFC to raise and manage commercial capital from sovereign funds for equity investments in some of the poorest developing countries.

The four crisis response facilities are expected to deploy about $30 billion over the next three years.

The initiatives will support the private sector, which is critical to employment, recovery, and growth.

The crisis response facilities will be supported by advisory services addressing the needs of clients affected by the crisis. The goal of the Sovereign Funds Initiative is to connect long-term commercial capital from state-owned investors with the substantial investment needs of private companies in developing countries, an IFC press release said.

IFC will fund the facilities and has invited other donors, including governments and international financial institutions to contribute financing and expertise. The Japanese government has announced that it will become a founding partner and invest $2 billion in the Bank Recapitalization Fund.

IFC’s Board of Directors is a permanent board that represents IFC’s 181 member countries and guides its programs and activities.