With central and eastern Europe at the centre of the financial crisis, attention will inevitably be focused on that region although the $3 billion fund’s strict guidelines mean that its portfolio will be diversified throughout the developing world. No more than 10% of the fund can be invested in any single bank; no more than 20% invested in one country; and no more than 25% invested in one region.
"Eastern Europe is probably the emerging region most affected by the crisis but several other countries will be impacted too," says Jyrki Koskelo, vice-president for Europe, central Asia, Latin America and the Caribbean, and global financial markets at the IFC.
Further boost
The idea of the Bank Recapitalization Fund first came up in the second...
