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