Articles of Agreement Establishing IFC – An Overview
The International Finance Corporation (IFC) is a part of the World Bank Group and was established in 1956 with the aim of promoting private sector investment in developing countries. The Articles of Agreement Establishing IFC set out the objectives, functions, and governance of the organization.
The primary objective of IFC is to promote sustainable private sector investment in developing countries. Through its investments and advisory services, IFC helps to create jobs, improve infrastructure, and support economic growth.
The functions of IFC include:
1. Providing financing to private sector companies in developing countries. This financing can take the form of equity investments, loans, and guarantees.
2. Providing advisory services to companies, including advice on corporate governance, environmental and social management, and risk management.
3. Mobilizing private sector capital in developing countries by working with other investors, including commercial banks, institutional investors, and development finance institutions.
4. Investing in infrastructure projects, such as power plants, roads, and ports, to support economic development.
IFC is governed by a Board of Governors, which is made up of representatives from member countries. The Board of Governors is responsible for setting the strategic direction of IFC and approving major investments.
IFC is also overseen by a Board of Directors, which is responsible for the day-to-day management of the organization. The Board of Directors is appointed by the Board of Governors and is made up of representatives from member countries.
The Articles of Agreement Establishing IFC provide a clear framework for the organization`s objectives, functions, and governance. By promoting sustainable private sector investment in developing countries, IFC plays an important role in supporting economic growth and reducing poverty. As a result, the organization has become an important player in the world of international development, and its work is highly regarded by governments, investors, and other stakeholders.