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Washington, D.C., September 21, 2005
– The International Finance Corporation, the private sector arm of the World Bank Group, announced Wednesday its third consecutive year of record growth, setting the stage for a substantial expansion in its work to promote sustainable private sector development in the emerging markets.
“We are very proud of the past year’s accomplishment and celebrate the strong performance of so many emerging markets that made our results possible,” said Assaad J. Jabre, the Corporation’s Acting Executive Vice President.
He added that, “Much remains to be done, particularly in our frontier markets, where economic growth must accelerate to continue improving people’s lives and help meet the Millennium Development Goals.”
The Corporation’s operating income rose to $1.95 billion in FY05, from $982 million in FY04. Its committed portfolio was $19.3 billion at June 30, 2005, an increase of 7.6 percent over the previous fiscal year. IFC also held and managed for participants $5.3 billion in syndicated loans.
Mr. Jabre noted several highlights of the past fiscal year:
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IFC’s annual investments in Africa have risen 77 percent over the past three years, to $445 million in FY05.
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During FY05, IFC's investments in microfinance projects increased to $323 million, representing 69 projects across 43 countries and reaching 1.2 million microcredit clients in low-income households.
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IFC is making home ownership a reality for low-income families in developing countries by investing in housing finance. Its committed portfolio in the sector now stands at $1.3 billion, representing 57 housing finance projects in 34 countries.
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Last fiscal year IFC invested $1.1 billion in support of small and medium enterprises, a key engine of employment and economic growth for developing country economies.
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IFC established the Global Trade Finance Program, which helps banks deliver trade financing and makes it easier for entrepreneurs in challenging markets to import and export goods.
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With donors, IFC sponsored technical assistance for the development of financial markets in more than 60 countries, with an emphasis on access to finance for small businesses and on high-risk or low-income economies, particularly in Africa and the Middle East.
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With the World Bank, IFC continued to assess the investment climate of developing countries, including through the annual
Doing Business
report.
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To help develop local financial markets, IFC raised $1.1 billion for its clients through structured finance; the Corporation's disbursements included $321 million equivalent in derivatives-based local currency products.
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IFC increased investments in renewable energies and helped develop the market for carbon finance.
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The Corporation advised governments on bringing private participation into infrastructure, health care, and other public services, working on 25 assignments in FY05.
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To support tsunami relief, IFC set up a matching grant program for partner companies in East and South Asia. IFC also established a tourism loan facility to support the recovery.
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IFC launched key initiatives to support women entrepreneurs and grassroots businesses.
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The Corporation helped set up a regional association of African business schools and assisted private companies in addressing HIV/AIDS.
Looking to IFC’s 50th anniversary during 2006, Mr. Jabre remarked, “Our ambition is to make a difference in developing and transition countries by improving the business environment, by building capacity in the private sector, and by working with partners who share our commitment to improving corporate governance and raising environmental and social standards. To achieve real progress we must invest in sustainable economic growth."
In FY05, IFC committed investments for its own account of $5.37 billion, a 13 percent increase over FY04. In addition, the Corporation made loan syndications of $1.1 billion and mobilized a further $1.1 billion through structured finance.
Of the commitments IFC signed for its own account, $4.54 billion were in loans, $612 million were in equity, and $220 million were in structured finance and risk management products. Some 28 percent of these investments went to low-income or high-risk countries. Expenditures for IFC’s technical assistance and advisory activities, which are delivered through a network of donor-funded facilities and programs, amounted to about $108 million for FY05.
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. For more information, visit
www.ifc.org
.
2121 Pennsylvania Avenue, N.W., Washington, D.C., 20433, Telephone 202-473-3800, Fax 202-974-4394
Transcript of IFC -Annual Report Press Briefing by Mr. Assaad Jabre- Acting Executive Vice President-IFC, Sept. 21.2005 - 11:00 AM-Washington D.C.
http://www.ifc.org/ifcext/home.nsf/AttachmentsByTitle/ar_transcript/$FILE/ar_transcript.pdf
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