IFC Helps Businesses in the Poorest Countries with $4b COVID-19 Financing

The International Finance Corporation ( IFC) has said that it has so far extended USD 4 billion to private sector companies in the poorest countries to help combat the coronavirus pandemic.

The IFC — the largest global development agency focused on the private sector in emerging markets — in March committed USD 8 billion in fast-track funding to support pandemic-hit private sector companies, reports BSS.

Of the $8 billion in IFC Covid-19 fast-track funding approved by the IFC Board in March 2020, $4 billion has been committed to date, of which almost half is expected to benefit people in the poorest countries and fragile states, with the remainder helping to finance the fight against Covid-19 in other developed countries and emerging markets.

"Supporting the private sector will be key to helping developing countries achieve an equitable, sustainable and resilient recovery and curb the current increase in extreme poverty," said David Malpass, President of the World Bank Group.

"Our goal with IFC's fast-track facility, Covid-19, is to provide the liquidity required for corporate and financial institution clients to provide working capital, support employment and promote trade," he said in an IFC press release.

"IFC's fast-track Covid-19 facility was designed to provide immediate liquidity to our financial institutions and real sector clients to preserve jobs and prevent short-term damage," said Stephanie von Friedeburg, Interim Managing Director, Executive Vice President and Chief Operating Officer of IFC.

"By supporting private sector clients and interventions, we are hoping in the longer term to help reignite economic growth, paving the way for a better, more resilient and sustainable future once Covid-19 recedes." added Stephanie.

IFC has committed an additional $ 2 billion under the facility, supporting each area in which IFC operates. This support is being used for a variety of purposes, from improving health providers to supporting the devastated tourism industry to keeping viable companies alive, thus saving jobs. A further $623 million has been mobilized from private sector partners for these clients.

IFC 's response is part of the World Bank Group's initiative to take large, rapid action to help developing countries enhance their response to the pandemic, increase disease surveillance and boost public health initiatives. The World Bank Group has the financial ability to deploy $160 billion over the next 15 months, including a possible $47 billion from IFC in total funding to the private sector.

Looking ahead, IFC will collaborate with its partners to help restructure and recapitalize viable companies and set the stage for an inclusive, sustainable and resilient recovery. In August, IFC also unveiled the $4-billion Global Health Platform, which helps developing countries increase access to medical supplies such as masks, ventilators, test kits and, finally, the Covid-19 vaccine.