THE World Bank's private lending arm, International Finance Corporation, said on 12/07/2001 that it had entered into a currency swap agreement with State Bank of India as part of efforts to increase its business in the country further from $400 million last fiscal.

According to the agreement, IFC would provide loans to Indian companies in local currency without their being exposed to foreign exchange risk. "The facility is expected to be particularly useful in IFC's efforts to extend local currency financing for the infrastructure as well as for the general manufacturing sector," IFC director (South Asia department) Bernard Pasquier said in a statement here.

He said this offering would complement IFC's other rupee financing products, which include partial guarantees and structural finance products. "With annual business volume of about $400 million, India has emerged as the largest recipe of IFC financing in the financial year ended 2001. IFC's initiatives in local currency financing is expected to sustain further growth in the size and diversity of its business in India," he said