The World Bank President plans further sales of securitized assets.
World Bank President David Malpass stated in an interview with the Financial Times that they plan to continue selling some of their loan portfolio to private investors. Malpass plans to sell more securitized debt to private investors such as pension funds and insurance companies in order to transfer some of the loan risks. The first-ever loan securitization issued by the International Finance Corporation is part of its comprehensive plan to attract private capital, which also includes increasing local currency loans and providing investment guarantees. According to reports citing anonymous sources, the transaction by the International Finance Corporation took about two years to prepare and used existing floating-rate dollar-denominated corporate loans as collateral, covering loans provided to 57 borrowers.
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