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What are the differences between the Banks guarantee and IFCs B-Loan?

April 26, 2017Bank differences guarantee ifc

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What are the differences between the Banks guarantee and IFCs B-Loan?

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The IFC B-loan differs significantly from the Bank’s guarantee. IFC is the lender of record both for its own account (the A-Loan) and for account of participants, who enter into individual participation agreements with IFC. All project risks, commercial and political, are shared by IFC and its participants.IFC does not guarantee B-lenders, nor does it obtain counter-guarantees from host governments. The Bank’s guarantee, by contrast, covers specific and agreed debt service risks borne by direct lenders.