On 14th April 2021,International Finance Corporation (IFC),member of the World Bank Group announced to invest USD 100 million in J.C. Flowers India Opportunities Fund to help Indian financial institutions in resolving distressed assets.
- The investment is part of IFC’s Distressed Asset Recovery Program’s (DARP) work in India.Initially, IFC will invest USD 40 million.
Objective
i.It will help the domestic lenders(Lenders in India) to resolve their distressed assets and free up the capital for new lending.
ii.It will allow mid-sized firms to preserve jobs and avoid insolvency during the pandemic.
Key Points:
i.Under this venture, $27 billion worth dedicated platform for mid sized distressed assets will be created. This will account for more than a third of the country’s corporate stressed assets.
Benefits:
- This partnership helps in recovery as well as revitalization of India’s economy by promoting growth of credit and ensuring the continuity of hard hit businesses.
- Apart from this investment, IFC will help in adoption of environmental and social standards by J.C.Flowers and Eight Capital .
Note – So far IFC has provided $7.7 billion globally including the mobilization of $5billion.It has also helped in recovering over$33 billion non performing assets of banks and in resolving over 18 million obligations of debtors.
About International Finance Corporation(IFC):
Executive Vice President & Managing Director: Makhtar Diop
Headquarters: Washington D.C.,USA.
