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 Houses
 Forfaiting
 Banks
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