The IFC finances various projects in the private sector through loan and equity
participation. In contrast to IBRD or IDA, the IFC does not require government
guarantees; it emphasizes providing risk capital for manufacturing firms that have a
reasonable chance of earning adequate returns and providing economic benefits to the
community.
- Regional Development Banks
Regional development banks provide funds for financing of manufacturing, mining,
agricultural and infrastructure projects considered important to development. Repayment
terms for loans, in most cases, are over a 5 to 15 year period at favourable interest rates.
Some of the regional development banks are as follows:
European Investment Bank (EIB). It gives loan to lesser-developed regions in Europe
and to associated members in Africa.
Asian Development Bank (ADB). The ADB guarantees or makes direct loans to private
ventures in Asian/Pacific countries and helps to develop local capital markets by
underwriting securities issued by private enterprises.
African Development Bank (ADB). The bank guarantees or makes loans and provides
technical assistance to member states for various development projects.
European Bank for Reconstruction and Development (EBRD). This bank has been
established to finance the privatization of Eastern Europe.