IFC launches private-sector aid funds

WASHINGTON (Reuters) - The International Financial, the World Bank's private-sector lender, on Thursday approved facilities for trade, bank recapitalization and infrastructure to ease credit strains in emerging markets.

The facilities include a doubling of the IFC trade finance program to $3 billion (2 billion pounds), a new $3 billion bank recapitalization fund and an infrastructure crisis facility, which is expected to mobilize at least $1.5 billion.

In an interview with Reuters, IFC Executive Vice President Lars Thunell said private-sector companies in Asia, Latin America and Africa were hard hit by the global credit squeeze and a broader economic slowdown.

In addition, the group also approved a sovereign funds initiative which will enable IFC to raise and manage commercial capital from sovereign funds for equity investments in Africa and other developing regions.