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Chapter 18

Sources of Financing
and International Money
Market

Chapter Outline
Nonfinancial

Institutions
- Self Financing and Debt Financing
- Equity Financing
Financial Institutions
Government Agencies

Chapter Outline
International Financial Institutions/Development
Banks
- World Bank
- International Development Association (IDA)
- International Finance Corporation (IFC)
- Multilateral Investment Guarantee Agency (MIGA)
- International Centre for Settlement of Investment
Disputes (ICSID)

Chapter Outline
International

Monetary Fund (IMF)

- SDR
- Functions
Financial Centers
- Euromarket
- Asian Dollar Market

Self Financing

own capital
withholding of dividends
trade credit
joint venture partners
borrowing from affiliated firms and employee
retirement fund
issuing stocks
issuing commercial paper or bonds
venture capital

Equity Financing
Selling

Stock

Financial Institutions
Factoring
Forfaiting
Banks

Houses

Government Agencies
Concessionary

Financing
Mixed/Blended Credit

International Financial Institutions/


Development Banks
World

Bank (IBRD)
International Development Association (IDA)
International Finance Corporation (IFC)
Multilateral Investment Guarantee Agency
(MIGA)
International Centre for Settlement of
Investment Disputes (ICSID)

International Monetary Fund (IMF)


Special

Drawing Right (SDR)


Functions
- Regulatory Function
- Consultative Function
- Financial Function

Financial Centers
Booking

Center vs. Funding Center


Euromarket
Asian Dollar Market

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