With reference to the lending operations of the International Finance Corporation (IFC) and International Bank for Reconstruction and Development (IBRD), consider the following
1. IBRD funds only governments, IFC funds only private companies and projects
2. IBRD finances projects with sovereign guarantees, while the IFC finances projects without sovereign guarantees
Which among the above is / are correct statements?
Established in 1956, IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world. It promotes sustainable private sector development primarily by: Financing private sector projects and companies located in the developing world; Helping private companies in the developing world mobilize financing in international financial markets; Providing advice and technical assistance to businesses and governments. The IBRD provides loans to governments, and public enterprises, always with a government (or “sovereign”) guarantee of repayment subject to general conditions.
This question is a part of GKToday's Integrated IAS General Studies Module