News : Germany is an important partner of the International Finance Corporation, says German Development Minister

News on Germany & South Asia: German Development Minister Dirk Niebel

Germany is an important partner of the International Finance Corporation, says German Development Minister

February 04, 2010

German Development Minister Dirk Niebel had a meeting with the head of the International Finance Corporation Lars Thunell on 1st February, 2010. At the meeting Niebel said, "Germany is an important partner of the International Finance Corporation, the main pillar of the international financial architecture for the support of the private sector".

The IFC is an independent member of the World Bank Group; Minister Niebel is a World Bank Governor. It was the first meeting between Minister Niebel and the head of the IFC.

Federal Minister Niebel praised the IFC as the main pillar for the support of the private sector within the World Bank Group. The chief topic of the meeting was the role of the IFC during and after the economic and financial crisis. Minister Niebel praised the contribution made by the IFC towards fighting the crisis, particularly its innovative crisis facility.

Germany is an important partner in the infrastructure crisis facility and in the microfinance sector and one of the major supporters in this field. As he had done when he met World Bank President Zoellick in Berlin in mid-January, the Minister also made it clear that the necessary lessons would need to be learnt from the crisis. The Minister called for a strategic reorientation and in particular for the IFC to lead the way on social and environmental policy issues in the future.

With regard to the discussions about a possible capital increase, he said that Germany stood by the commitments made within the framework of the G20, namely to ensure a solid financial basis for the World Bank Group.

IFC head Thunell set out the IFC’s strategy 'IFC 2013', which envisages a restructuring of the corporation’s portfolio so as to put greater emphasis on sub-Saharan Africa, climate change, securing ecological and social sustainability, renewable energies and energy efficiency. Thunell welcomed Germany’s traditional involvement in the IFC, particularly the close cooperation between the IFC and the Kreditanstalt für Wiederaufbau (KfW) and the German Investment and Development Company (DEG).

He said that he could envisage further IFC engagement with German businesses in the fields of infrastructure, renewable energies and environmental technology, and co-financing with German banks. Germany would remain an important strategic partner for the IFC and thus a guarantor for the IFC’s ability to continue its important work of supporting efforts to promote the private sector in developing countries.