gs1medium

With reference to ‘IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct?

  1. 1.The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
  2. 2.They are the rupee-denominated bonds and are a source of debt financing for the public and private sectors.
  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
▶ Answer & Explanation

Correct answer: C. Both 1 and 2

The International Finance Corporation (IFC) is indeed a member of the World Bank Group and aims to promote private sector investment in developing countries. Masala Bonds are rupee-denominated debt instruments issued in international markets, offering investors a way to invest in Indian infrastructure and development projects, thereby providing debt financing for both public and private entities.

Source: UPSC gs1 2016

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