Foreign Funding: Institutions

The fundamental mission of International Monetary Fund (IMF) is to ensure the stability of the international monetary system. It does so in three ways:

(i)keeping track of the global economy and the economies of member countries;

(ii)lending to countries with balance of payments difficulties; and

(iii)giving practical help to members.

Objectives of IMF

IMF was developed as an initiative to promote international monetary cooperation, enable international trade, achieve financial stability, stimulate high employment, diminish poverty in the world and sustain economic growth. Initially, there were 29 countries with a goal of redoing the global payment system. Today, the organization has 190 members.

•To improve and promote global monetary cooperation of the world.

•To secure financial stability by eliminating or minimizing the exchange rate stability.

•To facilitate a balanced international trade.

•To promote high employment through economic assistance and sustainable economic growth.

•To reduce poverty around the world.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2024, Q. 6A(i) (Syllabus 2022).

International Monetary Fund (IMF) is an organisation working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and reduce poverty around the world. The primary purpose of IMF is to ensure the stability of the international monetary system - the system of exchange rates and international payments that enable countries and their citizens to transact with each other.

The following are the fundamental mission of IMF:

(i)keeping track of the global economy and the economies of member countries;

(ii)lending to countries with balance of payments difficulties; and

(iii)Other assistance to members countries

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, June 2024, Q. 4(d) (Corporate Funding and Listings in Stock Exchanges paper, Syllabus 2017).

The International Finance Corporation (IFC) is a sister organization of the World Bank and member of the World Bank Group and is the largest global development institution focused exclusively on the private sector in developing countries.

Functions of IFC

•It provides a wide range of investment and advisory services that help businesses and entrepreneurs in the developing world meet the challenges they face in the marketplace.

•It offers innovative financial products to private sector projects in developing countries. These include loans for IFC's own account (also called A-loans), equity financing, quasi-equity financing, syndicated loans (or B-loans), risk management products, and partial credit guarantees. IFC often provides funding to financial intermediaries that on-lend to clients, especially small and medium enterprises.

•It also provides advisory services that help build businesses. Much of IFC's advisory work is conducted by facilities managed by IFC but funded through partnerships with donor Governments and other multilateral institutions. Other sources of funding include donor country trust funds and IFC's own resources.

•It can provide a mix of financing and advisory services that is tailored to meet the needs of each project. However, the bulk of the funding, as well as leadership and management responsibility, lies with private sector owners and investors.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2021, Q. 4(b) (Corporate Funding and Listings in Stock Exchanges paper, Syllabus 2017).

The International Monetary Fund (IMF) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and reduce poverty around the world. Created in 1945, the IMF is governed by and accountable to the 189 countries that make up its near-global membership.

The IMF's primary purpose is to ensure the stability of the international monetary system, the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. The Funds mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability.

The IMF assists countries hit by crises by providing them financial support to create breathing room as they implement adjustment policies to restore economic stability and growth. The IMF's fundamental mission is to ensure the stability of the international monetary system which it does so in three ways:

(i)keeping track of the global economy and the economies of member countries:

(ii)lending to countries with balance of payments difficulties; and

(iii)giving practical help to members.

It also provides precautionary financing to help prevent and insure against crises. The IMF’s lending toolkit is continuously refined to meet countries’ changing needs.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, June 2021, Q. 3(a) (Corporate Funding and Listings in Stock Exchanges paper, Syllabus 2017).

The Asian Development Bank (ADB) was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and co-operation in one of the poorest regions in the world.

The Asian Development Bank is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.

Asian Development Bank in partnership with member governments, independent specialists and other financial institutions is focused on delivering projects in developing member countries that create economic and developments impact.

As a multilateral development finance institution, Asian Development Bank provides:

•Loans

•Technical assistance

•Grants

Asian Development Bank maximizes the development impact of its assistance by:

•Facilitating policy dialogues,

•Providing advisory services, and

•Mobilizing financial resources through co-financing operations that top official, commercial, and export credit sources.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2019, Q. 4(a) (Corporate Funding and Listings in Stock Exchanges paper, Syllabus 2017).

Asian Development Bank : Asian Development Bank (ADB) assists its member and partners, by providing loans, technical assistance, growth and other equity investments to promote social and economic development ADB is composed of 67 members 48 of which are from the Asia and the Pacific region.

The ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.

International Monetary Fund (IMF) : The IMF’s primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. The Funds mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, June 2019, Q. 2A(iii) (Corporate Funding and Listings in Stock Exchanges paper, Syllabus 2017).