Tokyo, February 2, 2009
—IFC, a member of the World Bank Group, and Japan Bank for International Cooperation (JBIC) today formally agreed to launch a new Bank Recapitalization Fund to provide capital for banks in emerging markets. The fund will help ensure banks in developing countries can continue to lend and support economic recovery and job creation through the current economic and financial crisis.
Lars Thunell, IFC’s Executive Vice President and CEO and JBIC CEO Hiroshi Watanabe signed the agreement at a ceremony at JBIC headquarters in Tokyo.
IFC will manage the fund, through a separate dedicated fund management company. It will provide Tier I and Tier II capital to emerging market banks currently lacking alternative financing given the global financial crisis.
JBIC, a founding partner, will invest $2 billion in the fund. Japan’s investment, which was announced by Finance Minister Shoichi Nakagwa during the IMF-World Bank Annual Meeting in October, reflects the strong partnership between Japan and the World Bank Group as well as that of JBIC and IFC.
“By investing in this fund, we are countering disruptions to the international financial system and to the global economy,” Watanabe said. “The agreement with IFC is an important step in accomplishing our mission toward this end.”
Lars Thunell, IFC EVP &CEO, said, “We want to thank Japan for becoming a founding partner and generously contributing to the fund. We aim to get it up and running as quickly as possible.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
