PRESENTED BY:NAINA GUPTA

INTERNATIONAL FINANCIAL

INSTITUTIONS:

International financial institutions (IFIs) are financial institutions that have been established by more than one country, and hence are subjects of international laws. Their owners or shareholders are generally national governments, although other international institutions and other organizations occasionally figure as shareholders. The most prominent IFIs are creations of multiple nations, although some bilateral financial institutions exist and are technically IFIs. Many of these are multilateral development banks (MDB).

WHAT ARE INTERNATIONAL FINANCIAL INSTITUTIONS

(IFI’S)?World Bank Group (WBG): International Bank for Reconstruction and Development (IBRD) International Development Association (IDA) International Finance Corporation (IFC)Multilateral Investment Guarantee Agency (MIGA) International Centre for Settlement of Investment Disputes (ICSID)

International Monetary Fund (IMF)

Regional development banks, such as:African Development Bank (AFDB)Asian Development Bank (ADB)

CONTINUED…..

Inter-American Development Bank (IADB)Bank of the SouthEuropean Bank for Reconstruction and Development (EBRD)

Other regional financial institutions e.g. European Investment Bank (EIB)

Export Credit Agencies of individual country governments, such as:US Export Import Bank (EXIM) Japan External Trade OrganizationHermes Kreditversicherungs (Germany)

INTERNATIONAL FINANCIAL

INSTITUTIONS:

Their common goal…….

to reduce global poverty and improve people's living conditions and standards;

to support sustainable economic, social and institutional development; and

to promote regional cooperation and integration.

PLANS LED BY G-20 SUMMIT IN

WASHINGTON D.C:

1. World Bank Group (WBG)

2. International Monetary Fund (IMF)

3. European Bank for Reconstruction and Development (EBRD)

4. Asian Development Bank (ADB)

5. African Development Bank (AFDB)

6. Inter-American Development Bank (IDB)

G20 leaders and delegates attend the Summit on Financial Markets and the World Economy Saturday at the National Building Museum in Washington, D.C. on November 15, 2008.

WORLD BANK GROUP:

The term "World Bank" generally refers to just the IBRD and IDAThe World Bank's activities are focused on developing countries, in fields such as human development, agriculture and rural development, environmental protection, infrastructure, and governance.

It is concerned with assisting its member countries to achieve sustained economic growth. It

functions as an intermediary for the transfer of financial resources from the more developed to the

less developed countries.

World Bank

Formation- 27 December 1945

Type- International organization

Legal status- TreatyPurpose/focus-

Economic development, poverty elimination

Membership- 187 countriesPresident- Robert Zoellick

Jim Yong Kim (Elect)Main organ- Board of

DirectorsWebsite- worldbank.org

ROLE OF WORLD BANK:

FIGHTS POVERTY BY OFFERING DEVELOPMENTAL ASSISTANCE TO MIDDLE INCOME AND LOW INCOME

COUNTRIES.

GIVE LOANS AND OFFERS ADVICE AND TRAINING IN BOTH THE PRIVATE AND PUBLIC SECTORS.

AIMS TO ELIMINATE POVERTY BY HELPING PEOPLE HELP THEMSELVES.

THE WORLD BANK GROUP CREATED A NEW $1.2 BILLION RAPID FINANCING FACILITY- THE GLOBAL

FOOD RESPONSE PROGRAM (GFRP)- IN MAY 2008 TO SPEED ASSISTANCE TO THE NEEDIEST COUNTRIES.

GFRP HAS APPROVED AND BEGUN DISBURSING $200 MILLION IN 21 COUNTRIES.

INTERNATIONAL BANK FOR RECONSTRUCTION

AND DEVELOPMET (IBRD):

1.The International Bank for Reconstruction and Development was established in 1945.

2. It had 184 members.

3. The IBRD is an international organization whose original mission was to finance the reconstruction of nations devastated by World War II.

4. Now, its mission has expanded to fight poverty by means of financing states.

5. Cumulative lending: $394 billion

6. Fiscal 2004 lending: $11 billion for 87 new operations in 33 countries

INTERNATIONAL DEVELOPMENT

ASSOCIATION (IDA):

1.The International Development Association was established in September 24, 1960.

2. 165 Members is the part of the World Bank that helps the world’s poorest countries.

3. IDA is responsible for providing long-term, interest-free loans to the world's 80 poorest countries, 39 of which are in Africa.

4. Fiscal 2004 commitments: $9 billion for 158 new operations in 62 countries

MULTILATERAL INVESTMENT AND

GUARENTEE AGENCY (MIGA):

1. The Multilateral Investment Guarantee Agency was established in 1988.

2. It had165 members.

3. Cumulative guarantees issued: $13.5 billion (Amounts include funds leveraged through the Cooperative Underwriting Program).

4. Fiscal 2004 guarantees issued: $1.1 billion

INTERNATIONAL FINANCE

CORPORATION (IFC):

1. The International Finance Corporation was established in 1956.

2. It had 176 members.3. Committed portfolio: $23.5 billion

(includes $5.5 billion in syndicated loans).

4. It promotes sustainable private sector investment in developing countries as a way to reduce poverty and improve people's lives.

5. Fiscal 2004 commitments: $4.8 billion for 217 projects in 65 countries.

INTERNATIONAL CENTRE FOR THE SETTLEMENT OF

INVESTMENT DISPUTES (ICSID):

1. The International Centre for Settlement of Investment Disputes was established in 1966.

2. It had 143 members.

3. Total cases registered: 159

4. It provides facilities for the conciliation and arbitration of investment disputes between member countries and individual investors.

5. Fiscal 2004 cases registered: 30

INTERNATIONAL MONETARY FUND

(IMF):The International Monetary Fund was created in 1944, with a goal to stabilize exchange rates and supervise the reconstruction of the world’s international payment system.1- Promote international monetary cooperation.2-Shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.3-Facilitate the expansion and balanced growth of international trade.4-Promote Exchange stability and maintain orderly exchange arrangements among members. 5-Assist in establishing a multilateral system of payments.The IMF provides financial assistance to

members to help them to correct balance of payments problems in a manner that

promotes sustained growth.

International Monetary Fund

Formation- Adopted: July 22, 1944 (67 years ago) Entered into force: December 27, 1945

Type- International Economic Organization

Headquarters- Washington, D.C.Membership- 1 nation (founding);

188 nations (to date)Official languages- English, French,

and SpanishManaging Director-

Christine LagardeMain organ- Board of GovernorsWebsite- www.imf.org 

ROLE OF INTERNATIONAL MONETARY FUND:

BENEFITS TO INDIA BY IMF:

Freedom to Rupee

Membership of the World bank

Importance of India in international field

Technical advice and training

EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD):

EBRD provide project financing for banks, industries and businesses, both new ventures and investments in existing companies. We also work with publicly owned companies.

Founded in 19911- Financial institution investing in public and private sectors2- Multinational shareholding: 60 countries, EIB and EU3- Operates in 27 countries of Central and Eastern Europe and the former Soviet Union)4- Institution with broader mandate: foster transition to market economy

ROLE OF EUROPEAN BANKS FOR RECONSTRUCTION AND

DEVELOPMENT:Structuring the financing of municipal infrastructure, equipment and

services Promote commercialization and corporatization of services Development of regulatory structures Promotion of appropriate private sector involvement Environmental improvement Facilitate EU grant and commercial loan co-financing

EBRD assists in developing municipal creditworthiness and improving budgetary and fiscal practice

EBRD mobilizes financing for municipal advisory services Support in project appraisal and transaction structuring Provide most appropriate financing structure from a wide array of financial

instruments Mobilization of co-financing and syndication

ASIAN DEVELOPMENT BANK (ADB):

The Asian Development Bank (ADB) is a regional development bank established to facilitate economic development of countries in Asia.

ITS STATED GOALS:1- Promoting economic growth2.Reducing poverty 3.Developing human resources 4.Improving the status of women 5.Protecting the environment

The Bank's operations cover a wide spectrum of activities and have been classified according to the following sectors: 1.Agriculture and natural resources 2.Transport and communications3.Energy4.Industry and non-fuel minerals5.Finance6.Socialinfrastructure

Asian Development Bank

Motto- Fighting poverty in Asia and the Pacific

Formation- 22 August 1966Type- Regional organizationLegal status- TreatyPurpose/focus- CreditingHeadquarters- Mandaluyong

City, Metro Manila, Philippines

Region served- Asia-PacificMembership- 67 countriesPresident- Haruhiko KurodaMain organ- Board of DirectorsStaff- 2,500+Website- http://www.adb.org

ROLE OF ASIAN DEVELOPMENT BANK:

1- Provides loans and equity investments to its developing member countries

2- Provides technical assistance for the planning and execution of development projects and programs and for advisory services

3-Promotes and facilitates investment of public and private capital for development

4-Assists in coordinating development policies and plans of its DMCs

AFRICAN DEVELOPMENT BANK (AFDB):

Established in 1964 with a mandate to promote economic and social development in Africa, the African Development Bank is a regional multilateral development finance institution comprising the African Development Bank, the African Development Fund, and the Nigeria Trust Fund. The opacity of its operations and its emphasis on major regional infrastructure projects have generated concern among African and international civil society.

African Development Bank

Formation August 4, 1963

Type International organization

Legal status Treaty

Purpose/focus Regional development

Membership 78 countries

President Donald Kaberuka

Main organ Board of Executive Directors

Website http://www.afdb.org

ROLE OF AFRICAN DEVELOPMENT BANK:

The main role of the African Development Bank is to help the development of countries in Africa by making loans and equity investments in various projects and programs.

African Development Bank also provides technical assistance on development projects.

African Development Bank helps in coordinating the development projects of the various countries involved.

INTER-AMERICAN DEVELOPMENT

BANK (IDB):

The Inter-American Development Bank was founded in 1959. The IDB has 48 member countries, including 26 Latin American and Caribbean borrowing members.  The bank supports efforts by Latin America and the Caribbean countries to reduce Poverty and Inequality and is the largest source of development financing in this area, besides loans, grants are provided as well as technical assistance and do research. The IDB has a strong commitment to achieve measurable results, increased integrity, transparency and accountability.

Inter-American Development Bank

Type International organization

Headquarters Washington, DC

Membership 48 countries

Official languages

English, Spanish, French, Portuguese

President Luis Alberto Moreno

Main organ Board of Governors

Staff About 2,000

Website iadb.org

ROLE OF INTER-AMERICAN DEVELOPMENT BANK:

1- Using its lending operations, regional initiatives, research and knowledge dissemination activities, institutes, and programs, the IDB helps to foster sustainable economic and social development in Latin America and the Caribbean.

2- Through its financing, the Bank prioritizes poverty reduction and social equity, environmentally sustainable growth, modernization of the state, and regional integration.

3- IDB has the following main areas of action: Reducing poverty and social inequalities; Addressing the needs of small and vulnerable countries; Fostering development through the private sector; Addressing climate change, renewable energy and environmental sustainability;

and Promoting regional cooperation and integration.

THANK YOU FOR YOUR KIND ATTENTION