INTERNATIONAL FINANCE CORPORATION (IFC)

Multilateral financial organization formed in 1956 to offers investment, advisory, and asset management services to private industrial initiatives. The IFC carries out its activities as a private investor in market conditions and, for investments, it assumes the business risk with partners. The IFC has international legal personality and financial autonomy, even though it is part of the World Bank Group and it coordinates with International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA). It is headquartered in Washington, D.C., United States. Its members are 176 countries and to become a IFC member it is necessary to be IBRD member. It is governed by a Board of Governors composed by member States representatives. The Board of Governors formally centralizes all powers, but delegates it to the Board of Directors which is composed of IBRD Executive Directors. The President is the same as the IBRD and IDA. The body that deals with appeals for projects funded by the IFC is Compliance Advisor Ombudsman (CAO). Although the IFC finances private sector initiatives, it may also intervene for companies with State ownership, but this companies must carry out activities reserved to the private sector and is managed on a commercial basis. The IFC limits its financing or its holding to 25% of the estimated cost of each new project (in exceptional cases even up to 35% for projects small amount), while for the expansion projects may be increased to 50%, provided that its operation does not exceed 25% of the total capitalization of the company that manages the project. 

Editors: gcl, Giovanni AVERSA