International Financial International Financial InstitutionsInstitutions

By:By:

Anshul shokeenAnshul shokeenCharu sharmaCharu sharmaSaurabh sainiSaurabh sainiManisha kawatraManisha kawatra

International Financial International Financial InstitutionInstitution

International International bank of bank of

Reconstruction Reconstruction and and

DevelopmentDevelopment(IBRD)(IBRD)

International Finance Corporation (IFC)

IBRDIBRD

 The IBRD is an international organization whose original mission was to finance the reconstruction of nations devastated by World War II. Now, its mission has expanded to fight poverty by means of financing states. Its operation is maintained through payments as regulated by member states. It came into existence on December 27, 1945 following international ratification of the agreements reached at the United Nations Monetary and Financial Conference of July 1 to July 22, 1944 in Bretton Woods, United States.

 The IBRD is an international organization whose original mission was to finance the reconstruction of nations devastated by World War II. Now, its mission has expanded to fight poverty by means of financing states. Its operation is maintained through payments as regulated by member states. It came into existence on December 27, 1945 following international ratification of the agreements reached at the United Nations Monetary and Financial Conference of July 1 to July 22, 1944 in Bretton Woods, United States.

Objectives and missionObjectives and mission

To assist in the reconstruction and development of To assist in the reconstruction and development of territories of its members by facilitating the territories of its members by facilitating the investment of capital for productive purpose.investment of capital for productive purpose.

To promote private foreign investment by means of To promote private foreign investment by means of guarantees on participation in loans and other guarantees on participation in loans and other investment made by private investors.investment made by private investors.

To promete the long-range balanced growth of To promete the long-range balanced growth of international trade and maintenance of equilibrium international trade and maintenance of equilibrium in the balance of payments of member countries.in the balance of payments of member countries.

To arrange the loans or guarantees by it in relation To arrange the loans or guarantees by it in relation to international loans through other channels .to international loans through other channels .

Goals of World BankGoals of World Bank

The WORLD BANK centers its efforts on The WORLD BANK centers its efforts on reaching these goals:reaching these goals:

Eradicate extreme poverty and hunger.Eradicate extreme poverty and hunger. Achieve universal primary education.Achieve universal primary education. Promote gender equalityPromote gender equality Reduce child moralityReduce child morality Combact HIV/AIDSCombact HIV/AIDS Ensure environmental sustainability. Ensure environmental sustainability.

MembershipMembership Membership in the IBRD rose Membership in the IBRD rose

gradually from 41 governments in gradually from 41 governments in 1946 to 184 as of July 2002. Any 1946 to 184 as of July 2002. Any country can join as a member of country can join as a member of the IBRD by signing its charter. the IBRD by signing its charter. The member of IMF are also the The member of IMF are also the member of IBRD. A government member of IBRD. A government may withdraw from membership may withdraw from membership at any time by giving notice of at any time by giving notice of withdrawal. Membership also withdrawal. Membership also ceases for a member suspended ceases for a member suspended by a majority of the governors for by a majority of the governors for failure to fulfil an obligation, if that failure to fulfil an obligation, if that member has not been restored to member has not been restored to good standing by a similar good standing by a similar majority within a year after the majority within a year after the suspension.suspension.

Organization structureOrganization structure

Board of GovernorsBoard of Governors

Executive directors

President

Finance department

Operations department

Economic Research

Staff department

Law Dpt. secretariat

StructureStructure

Board of GovernorsBoard of Governors Executive directorsExecutive directors PresidentPresident

ResourcesResources

member80%

gold & us dollars

2%

own currency

18%

gold & us dollarsown currencymember

INTERNATIONAL FINANCE INTERNATIONAL FINANCE CORPORATIONCORPORATION

The International Finance Corporation was established in July 1956 with the specific purpose of financing private sector enterprises in developing countries.It is an affilate of the IBRD. However, it has separate legal entity, funds and functions.

ObjectivesObjectives

Acc to the article of agreement, Acc to the article of agreement,

the objectives of the IFC are as follows:the objectives of the IFC are as follows:

The purpose of the IFC is to further economic The purpose of the IFC is to further economic development by encouraging growth of private development by encouraging growth of private enterprise in member countries, perticularly in enterprise in member countries, perticularly in the less developed area , thus supplementing the the less developed area , thus supplementing the activities of the International Bank of activities of the International Bank of Reconstruction and development.Reconstruction and development.

FunctionsFunctions

The IFC performs the following functions:The IFC performs the following functions:

Investment in private enterprise in member countries, in Investment in private enterprise in member countries, in association eith private investors and without government association eith private investors and without government guarantee in case where sufficient private capital is not guarantee in case where sufficient private capital is not available on resonable terms.available on resonable terms.

Bring investment opportunities, private capital of both Bring investment opportunities, private capital of both foreign and domestic origin, and experienced management.foreign and domestic origin, and experienced management.

Stipulate condition to the flow of private capital, domestic Stipulate condition to the flow of private capital, domestic and foreign into productive investments in member and foreign into productive investments in member countries.countries.

Assistance to Member countriesAssistance to Member countries

The IFC provides financial assistance to large, The IFC provides financial assistance to large, medium and small scale private sector medium and small scale private sector enterprises in the member countries. Assistance enterprises in the member countries. Assistance is given in several forms:is given in several forms:

Direct investmentDirect investment LoansLoans Resource mobilizationResource mobilization Risk management productsRisk management products Credit guaranteesCredit guarantees Technical assistanceTechnical assistance

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