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.
In 2009, IFC established the Debt and Asset Recovery Program to make direct investments in businesses that need to restructure debt in pools of distressed assets and in specialized companies that manage distressed assets. The program also invests indirectly through investment funds that focus on such assets and companies.
IFC will contribute up to $1.6 billion over three years. The initiative aims to mobilize about $5 billion more from other international financial institutions and private sector partners. IFC also expects to provide support to lower-income countries affected by the financial crisis.
Last Updated: 12 Nov 2010 |
