WASHINGTON, D.C., April 9, 1999 ---
Multilateral development banks, national development finance institutions, and export credit agencies will be meeting collectively to discuss their private sector financing activities for the first time on April 12 and 13, 1999. World Bank Group President, James D. Wolfensohn, and IFC Executive Vice President, Peter L. Woicke, will open the conference on Monday. Stephen G. Thieke, Managing Director and Head of Corporate Risk Management at JP Morgan will give the keynote speech. During the two days of meetings, representatives of the institutions will consider ways to better share information and improve effectiveness in providing financing and other support to the private sector in developing countries. The conference is hosted by the International Finance Corporation, the largest multilateral source of loan and equity finance for private investment in developing countries.
Together, national and international financial institutions provided $29 billion of financing to the private sectors of developing countries in 1997, representing 9 percent of all such financing. That share rose to 11 percent in 1998 as private investors withdrew in the wake of the Asian financial crisis. The share of debt financing provided by the international financial institutions grew even more, accounting for 21 percent in 1997 and 37 percent by last year.
The 33 international financial institutions at the conference are government-owned or agents of governments that provide financing, advice, and guarantees for private investments in developing countries. Financial difficulties in many developing countries have created a strong push for greater cooperation among the institutions and sharpened the conviction that in an increasingly difficult global financial environment, these institutions could all be more effective by sharing knowledge more widely.
The conference draws together multilateral development banks including the European Bank for Reconstruction and Development, Asian Development Bank, InterAmerican Development Bank, African Development Bank, Nordic Investment Bank and the European Investment Bank; bilateral development institutions such as the Commonwealth Development Corporation (UK), DEG (Germany), OECF (Japan), and Proparco (France); and export-import banks and guarantee institutions such as US Exim, and OPIC, Japan Exim, SACE (Italy), and ECGD (UK).
During the meetings, participants will address issues such as lessons learned from the recent financial crises and how these institutions can support the private sector and improve the enabling environment for private sector activity in the developing world. They will also consider enhanced structuring and efficiency in cofinancing activities, working out jeopardy projects, supporting small business more effectively, and working better together on environmental aspects of private sector projects.
The conference is one outcome of a global study by IFC which, for the first time, gathered data on private sector financing of these international financial institutions.
IFC, part of the World Bank Group, fosters economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses.
