As a result of the global financial crisis, businesses in emerging markets are facing difficulties refinancing debt and banks are dealing with rising levels of Non-Performing Loans. In response, IFC has launched the Debt and Asset Recovery Program (DARP). This program makes direct investments in businesses that need to restructure debt, in pools of distressed assets, and specialized companies that manage distressed assets. It also invests indirectly through investment funds that target pools of distressed assets and companies.
Through the program IFC will partner with other international finance institutions and private sector partners on specific projects. DARP aims to support real and financial sector stability, growth, and development by addressing restructuring needs, cleaning up financial systems, and restoring the health of companies and financial institutions.
IFC will contribute up to $1.55 billion over three years. The program expects to mobilize about $5 billion more from other international financial institutions and private sector partners. We also expect to provide support to IDA countries affected by the financial crisis.