The International Finance Corporation IFC, a World Bank subsidiary, in collaboration with the German State Development Bank KFW have announced intentions to set up a microfinance company in Yemen with a capital of € 5 million, Saba reported. The state-run 26sep.net quoted an IFC official as saying the company would later be turned into a microfinance bank after microfinance legislation issued by the Yemeni government. Bushra Nasr said the focus of the IFC on microfinance in the country comes as part of its strategy aimed at improving the financial sector through promoting competitive capability of the private sector to create more job opportunities for people. The IFC in cooperation with the Netherlands embassy in Yemen will also establish a program that will focus on building people capability, Nasr added, stressing the importance of microfinance and the need to differentiate between it and loans and grants. The Washington-based International Finance Corporation IFC is the World Bank subsidiary that promotes private sector investments in developing countries.
