Question
With reference to `IFC Masala Bonds', sometimes seen in the news, which of the statements given below is/are correct?
1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.
Select the correct answer using the code given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer:
C
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Explanation:
IFC Masala Bonds are rupee-denominated bonds issued by the International Finance Corporation (IFC), which is indeed an arm of the World Bank Group. These bonds are designed to fund private sector projects in India and are an important source of debt financing for both the public and private sector entities. By issuing Masala Bonds, the IFC aims to mobilize funds from international investors in the Indian market and support sustainable development initiatives in the country.