With reference to `IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct?
- The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
- They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.
Select the correct answer using the code given below
[UPSC Civil Services Exam – 2016 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither1 nor 2
The World Bank Group (WBG) consists of five organizations –
- International Bank for Reconstruction and Development (IBRD)
- International Development Association (IDA)
- International Finance Corporation (IFC) (Hence statement 1 is correct)
- Multilateral Investment Guarantee Agency (MIGA)
- International Centre for Settlement of Investment Disputes (ICSID)
IFC Masala Bonds:
- The first Masala bond was issued by IFC in 2014 for the infrastructure projects in India.
- They are the rupee-denominated bonds issued to offshore investors and are a source of debt financing for the public and private sectors. (Hence statement 2 is correct)