International Financial Institutions Flashcards
1
Q
IFI (4)
A
- major lender for medium to long term infrastructure
- acts as a trailblazer for creating new structure
- stabilizing factor during period of volatility
- PRG and PRI for risk mitigation
2
Q
IBRD (4)
A
- original lending arm
- must be part of IMF
- guarantee sovereign borrowing/public and private project from the government
- international bank for reconstruction and development
3
Q
IDA (2)
A
- international development association
- loan to government of poor countries, 0% interest rate
4
Q
IFC (1)
A
- private sectors
5
Q
PRG (2)
A
- protect private lenders against risk of government failing to perform its obligation (borrow from IBRD or IDA)
- partial risk guarantee
6
Q
PCG (4)
A
- borrow from world bank
- partial credit guarantee
- cover private lender against risk during specified period of financing of debt for public investment
- funded public project for extended maturity and improve market term
7
Q
International finance corporation: program benefit (3)
A
- commits to allocate pro rate
- borrower sign a single loan agreement to IFC and IFC signs a participant agreement to a participant
- IFC retains a portion of loan for its own account (A) and sells participation remains to its participant (B)
8
Q
The benefit of IFC lender (4)
A
- environmental and social leadership
- reconstructing and structuring skills
- risk mitigation
- government relation
9
Q
MIGA (4)
A
- multilateral investment guarantee agency
- transfer restriction: protect the investor against loss from currency
- expropriation: protect an investor against loss of reducing ownership from the government
- breach of contract
- war and civil disturbance: protect against damage
10
Q
European bank for reconstruction and development (1)
A
- promote development from a loan, investment to public and private sector entities to Eastern Europe and NIS
11
Q
EBRD resource (2)
A
- only IFI can lend directly to municipalities without sovereign or bank guarantee
- EBRD cannot exceed municipalities annual budget
12
Q
Benefit of EBRD (2)
A
- lower rate, longer-term
- relationship with government, reduce risk, special status
13
Q
Development agencies (5)
A
- Inter-American development bank
- Asian development bank
- African development bank
- CAF
- CABEI
14
Q
Export credit agencies (2)
A
- providing financing for foreign buyers to purchase their countries goods and services
- direct loan, loan guarantee, export credit insurance
15
Q
Export development bank of Canada (4)
A
- support direct investment abroad and into Canada
- bond: annual performance guarantee
- financing: working capital financing, buying financing, and direct lending
- insurance: trade credit and portfolio credit insurance
