Question

Discuss the organisation and functions of International Finance Corporation (IFC).

Answer 1

The International Finance Corporation (IFC), a member of the World Bank Group (WBG), is the largest global development institution focused exclusively on the private sector. IFC helps developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments.Strengthening the focus on frontier markets – IDA countries, Fragile and Conflict Situations (FCS), and frontier regions in non-IDA countries;

Addressing climate change, and ensuring environmental and social sustainability;

Addressing constraints to private-sector growth in infrastructure, including water; health, education, and the food supply chain;

Developing local financial markets through institution-building, the use of innovative financial products and mobilization, focusing on micro, small and medium enterprises (MSMEs); and

Building and maintaining long-term client relationships with firms in developing countries, using the full range of IFC’s products and services, and assisting their cross-border growth.

IFC also continues to place a strong emphasis on gender as a cross-cutting theme. Following the 2013 World Development Report (WDR) on Jobs and the IFC Jobs Study, IFC is also putting a special emphasis on jobs, which the majority of poor people consider their most likely pathway out of poverty

Answer 2

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Benefits of Corporate Finance Advisory

Helpful in Planning of Finances Stage

• Here is the place where the bits of knowledge are abused to decide and plan effectively the finances of the organization. A decision needs to be taken on how much finance is required, where it will be sourced, and where it will be invested, would the investment acquire benefits, what amount is anticipated benefits and such to decide on a firm plan-of-action.

Helpful in Capital Raising Decision

• Capital raising is one of the crucial decisions to take in business this will include the assessment of organization assets for sources to fund investment. To raise adequate capital, an organization may decide to sell shares, issue debentures and offers, take bank loans, request creditors to contribute and so forth.

Financial Monitoring and Risk Management

• Once invested, the investigation of constant investigation is required to ensure the fructification of the strategy and action plan. Risk management aims to diminish and mitigate the embraced risk of investments and forms a part of the on-going monitoring process.