Baku, Fineko/abc.az. The International Finance Corporation (IFC) has not determined the frames of package of crisis response initiatives to support the private sector in emerging markets hit by the global financial crisis and a Sovereign Funds Initiative which will enable IFC, a member of the World Bank Group, to raise and manage commercial capital from sovereign funds for equity investments in some of the poorest developing countries.

IFC Representative Aliya Azimova said that currently the criteria of selection of new Bank Recapitalization Fund members are being determined.

“The Fund is focused on large market players, but today we are discussing the Fund’s expansion onto such countries as Azerbaijan. Azerbaijani banks might also get the access to the Fund’s resources,” Azimova said.

The crisis response facilities consist of a doubling of the IFC Global Trade Finance Program from $1.5 bn to $3 bn, a new $3 bn Bank Recapitalization Fund (Corporation’s involvement for $1 bn), and an Infrastructure Crisis Facility which is expected to mobilize at least $1.5 bn (IFC participation is $300 million). These will be supported by advisory services addressing the needs of clients affected by the crisis. The goal of the Sovereign Funds Initiative is to connect long-term commercial capital from state-owned investors with the substantial investment needs of private companies in developing countries.

The four crisis response facilities are expected to deploy about $30 bn over the next three years. IFC will fund the facilities and has invited other donors, including governments and international financial institutions to contribute financing and expertise. The Japanese government has announced that it will become a founding partner and invest $2 bn in the Bank Recapitalization Fund.

16.02.2009 13:39