Due to the global financial crisis, businesses face difficulties refinancing debt and banks have rising levels of nonperforming loans. High levels of such troubled assets in developing countries mean individuals and businesses suffer reduced access to affordable finance.
IFC established the Debt and Asset Recovery Program to help companies and banks deal with debt and troubled assets in developing countries and support recovery from the global financial crisis.
DARP will invest directly in businesses that need to restructure debt and in pools of distressed assets and indirectly via investment funds targeting pools of distressed assets and companies.
IFC will contribute up to $1.55 billion over three years and the program expects to mobilize an additional amount from other international financial institutions and private sector partners for a total program size of $5-6 billion.
The program will support projects in low-income and poor countries. It was launched at the Private Sector Development Institutions Roundtable held in Istanbul, Turkey, during the 2009 Annual Meetings of the World Bank Group and International Monetary Fund.
Last Updated: 11 Jan 2010 |
