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U.S. International Development Finance Corporation (DFC)

Its 5 cross-references, woven across the glossary's 18 categories

The US federal agency that succeeded OPIC and, among other things, insures private investment in developing countries against political risk.

Definition

The U.S. International Development Finance Corporation is the US federal development finance agency, created by the BUILD Act of October 5, 2018 and operating since December 2019. It took over the activities of the Overseas Private Investment Corporation, including political risk insurance, and added equity investment. Its cover protects against expropriation, currency inconvertibility and transfer restriction, and political violence, for projects in developing countries. It acts as a public insurer of last resort where the private market caps its capacity or withdraws, and often co-insures with it or with MIGA. For the private underwriter, its presence on a project counts as much as its share: a host state thinks twice before expropriating an investment whose insurer is an agency of the US government.

Example

The BUILD Act, signed into law on October 5, 2018, raised the agency's total exposure ceiling to 60 billion dollars, against 29 billion for the OPIC it replaced, more than doubling the public capacity to insure, lend and guarantee.

Related terms
Also known as

DFC, US International Development Finance Corporation, OPIC, Overseas Private Investment Corporation

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