The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has announced the launch of the Pacific Microfinance Initiative to improve access to basic financial services, particularly for women, rural households, and enterprises in Papua New Guinea, Timor-Leste, and the Pacific Islands. The four-year, AUD 12.3 million (USD 11.1 million) initiative consists of AUD 9.5 million (USD 8.55 million) from the Australian government. The source of the remaining AUD 2.8 million (USD 2.52 million) has not been released.
“Together with the Australian government, IFC will help expand loans, savings, and other basic financial services in the Pacific,” said Karin Finkelston, IFC Director for East Asia and Pacific. “The goal is to allow households and businesses to transition from every day survival to establishing businesses that are sustainable in the long term.”
A press release from IFC claims that it will provide performance-based grants and business advice to financial service providers with the aim of developing business plans with measurable expansion targets. Grant disbursement will be contingent on meeting the pre-agreed performance targets.
About The International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that ‘collectively determine its policies, and approve investments.’ In fiscal year 2009, its new investments totaled USD 14.5 billion.
By Matthew Fox, Research Assistant
Sources and Additional Resources:
International Finance Corporation (IFC): Press Release, 26 August 2010: http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=32DD08F5F2A3F0378525778B00540D0B
MicroCapital Universe: International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)
MicroCapital Universe: Pacific Microfinance Initiative: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Pacific+Microfinance+Initiative
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