IFC provides $4m to poorest countries to fight COVID-19

Kathmandu, Oct. 30

The International Finance Corporation (IFC) has supported businesses in the poorest countries to fight the COVID-19 pandemic with financing of $4 billion.

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

“IFC’s pandemic response is focused on reaching the most vulnerable people in the developing countries,” it said in a statement on Friday.

Supporting the private sector will be crucial to helping the developing countries achieve an inclusive, sustainable and resilient recovery and stem the current rise in extreme poverty, said World Bank Group President David Malpass.

IFC is a member of the World Bank that focuses on the private sector in the emerging markets. 

“Our goal with IFC’s fast-track COVID-19 facility is to provide needed liquidity for corporate and financial institution clients, which will provide working capital, support jobs and facilitate trade,” he said.

IFC’s Board in March approved $8 billion in financing to help companies affected by the outbreak. IFC has since fully deployed the $2 billion allocated under the trade-finance envelope of the fast-track facility. This support is helping client financial institutions keep liquidity flowing to businesses that depend on trade, especially micro, small and medium-sized enterprises (MSMEs), a major source of employment.

IFC has committed an additional $2 billion under the facility, benefiting every region in which IFC operates. This financing is being used for a range of purposes, from bolstering healthcare providers to helping the battered tourism sector and keeping viable businesses afloat, thus saving jobs. 

Published in The Rising Nepal daily on 31 October 2020.