Development Banks
Development Banks are increasingly popular in monitoring and supervision of various government functions that are established in order to stimulate the national economy.
Indeed number of Development Banks have a more international reach, be it regional or global (for instance The World Bank).
Vision Finance offers development banks various services, from capital raising, hedging, investment, to establishment of the strategy aimed at maximizing the benefits to the country.
Promotion of Selected Industries
Number of Development Banks that we worked with were based in the Oil producing countries, and as the result they focused on the non-oil sectors in order to stimulate other parts of the economy.
It is well know in economic theory, that presence of the strong and profitable commodity sectors such as oil production or metals mining often has a crowding out effect on the other industries, by not only taking vast majority of the allocated investments, but also in recruiting the talented personnel.
Provision of Guarantees
Development Banks often have the legal powers to provide selected companies with the government guarantees, ensuring that the identified special industries obtain the needed financing.
Establishment of Export Agencies
One of the frequent roles of the Development Banks is provision of the guarantees on the loans that are made to foreign companies who use the money to acquire equipment and services from the domestic companies.
Development of Local Financial Markets
Number of our clients, both corporates and financial institutions are keen at hedging their risks with respect to local currency. Importers and Exporters alike are keen to have a forecastable pricing policies, enabling them to have steady revenues and wages. They are often looking to hedge.
Development Banks are hence fundamental in both enabling and at times often stimulating the development of local markets.