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Development finance institution

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This is an old revision of this page, as edited by Marcocapelle (talk | contribs) at 20:46, 14 May 2016 (removed Category:Development; added Category:International development using HotCat). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

For other uses of "DFI", see DFI (disambiguation).

A development finance institution (DFI) is an alternative financial institution which includes microfinance institutions, community development financial institution and revolving loan funds.[1] These institutions provide a crucial role in providing credit in the form of higher risk loans, equity positions and risk guarantee instruments to private sector investments in developing countries.[2] DFIs are backed by states with developed economies. In 2005, total commitments (as loans, equity, guarantees and debt securities) of the major regional, multilateral and bilateral DFIs totalled US$45 billion (US$21.3 billion of which went to support the private sector).[2]

DFIs provide finance to the private sector for investments that promote development and to help companies to invest, especially in countries with various restrictions on the market.[2]

References

  1. ^ Andrea Levere, Bill Schweke, and Beadsie Woo, Development Finance and Regional Economnic Development, Washington, DC: CFED, July 2006
  2. ^ a b c Dirk Willem te Velde and Michael Warner (2007) Use of subsidies by Development Finance Institutions in the infrastructure sector Overseas Development Institute

See also

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