February 17, 2009—IFC posted a net loss of $539 million during the October–December quarter, the second quarter of IFC's Fiscal Year 2009. Financial results were affected by weakness in global stock markets, which reduced the value of IFC's equity holdings.
During the July–September quarter, IFC earned net income of $72 million.
IFC has adequate liquidity, low leverage and an international AAA credit rating. It is well-positioned to continue to make investments in the areas where IFC is needed most and can have the most development impact.
IFC's risk management policies are conservative and its staff and management team is experienced in working through financial crises. IFC is adapting its business model to navigate the current crisis and paying close attention to portfolio management. Private capital flows to emerging markets are dropping sharply. Demand for IFC investment and advisory services has grown as a result of the crisis.
IFC has launched a series of new initiatives to respond to the crisis and meet the increased need for support in developing countries. The initiatives include new credit facilities for trade finance, infrastructure investment, bank recapitalization, and microfinance.
IDA countries continue to be a priority for IFC, especially in light of the global economic downturn and its impact on the poor. IFC has continued to support the IDA trust fund in FY09.
For more information, visit www.ifc.org/investors.
Contact:
Elizabeth Price
Communications Officer
Phone: (202) 458-0387
E-mail: EPrice@ifc.org
