IFC, which is the largest global development institution focusing on the private sector in new markets, committed in March USD 8 billion. in rapid track funding to help pandemic-affected companies in the private sector.
“Of the $ 8 billion pandemic funding approved by our board in March, $ 4 billion has been committed so far, almost half of which is expected to benefit the people of the poorest countries,” Mengistu Alemayehu, IFC Regional Director for South Asia, said in a statement.
He added that the rest will support the fight against the pandemic in other developing countries and new markets.
IFC’s pandemic response is focused on reaching the most vulnerable people in developing countries.
“Support for the private sector will be crucial to help developing countries achieve an inclusive, sustainable and resilient recovery and stem the current rise in extreme poverty,” World Bank President David Malpass was quoted as saying in the statement.
He added that the IFC’s goal is to track its pandemic facility to provide the necessary liquidity to companies and financial institution clients, which will provide working capital, support jobs and facilitate trade.
Of the mentioned amount of 8 billion. USD is 2 billion. USD under the trade financing framework for the fast track facility, and today it said that the entire facility has been deployed, most of which has gone to small businesses.
“By supporting the private sector, we hope in the long run to help restore economic growth and pave the way for a better, more resilient and sustainable future when the pandemic returns,” said Stephanie von Friedeburg, interim CEO of IFC.
In addition to the quick loans, IFC has also committed an additional DKK 2 billion. USD to fund healthcare providers, tourism operators and anything that helps save jobs.
The World Bank Group has the financial capacity to deposit 160 billion. USD over the next 15 months, including potential 47 billion. USD, from IFC in the total support to the private sector.
In August, IFC also launched the global healthcare platform of 4 billion. USD to help developing countries expand access to medical supplies such as masks, ventilators, test kits, and eventually a pandemic vaccine.
In 2019-20, IFC invested DKK 22 billion. USD in private companies and financial institutions in developing countries to end extreme poverty and increase shared prosperity.