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Financial Institutions Announce Revision of Equator Principles
Financial Institutions Announce Revision of Equator Principles
Published 07-06-06
Submitted by International Finance Corporation
The Equator Principles Financial Institutions (EPFIs) today announced the launch of the revised Equator Principles. The revision underscores how far the financial sector has progressed in embedding in the project finance arena a common set of best practices to manage social and environmental risks related to project financing.
Today's revised principles reflect the experience of the 40 financial institutions around the world that currently apply the Principles. The principles also reflect the recent revisions to the International Finance Corporation's (IFC) Performance Standards, upon which the Equator Principles are in part based. In developing these changes, the EPFIs actively involved clients, civil society groups and official development agencies, all of whom provided constructive and valuable feedback that the EPFIs reviewed and considered in the revision process.
The Equator Principles apply globally and to all sectors and have been revised in the following ways:
The EPFIs are proud of the progress the Equator Principles have made in the past three years. The development and application of the Equator Principles have been a huge step forward for the industry, in terms of having a common framework and language for environmental and social issues in the project finance industry. The Equator Principles have enabled the financial institutions to better assess, mitigate, document and monitor the potentially adverse social and environmental risks associated with financing projects.
Participating financial institutions commit to financing only those projects that comply with the Equator Principles, and commit to implementing the revised Equator Principles into business and risk management processes in a manner consistent with its organizational structure. Of the 40 financial institutions that have shared their experience in devising the revised Equator Principles, 33 have today adopted them and the others are expected to do so in the coming weeks.
The full text of the revised Equator Principles and FAQ about the Equator Principles can be found at www.equator-principles.com.
International Finance Corporation
International Finance Corporation
The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services.
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