The International Finance Corp., the World Bank's investment arm, is ahead of schedule in its plan set out last year to boost investment commitments by 50%.

IFC's investment commitment rose 24% to $6,7-billion in the fiscal year ended June 30, the lender said in its annual report released in Singapore today. Reserves for loan losses dropped for a third year and non-performing loans also fell.

“The corporation is ahead of schedule in implementing this strategy,” IFC's Executive Vice President Lars Thunell said in the report. ``IFC's projects also generally reap economic benefits that surpass their financial rates of returns.'' The World Bank's investment arm, founded in 1956, has increased investment in companies and projects in high-risk or low-income countries and regions such as sub-Saharan Africa, where it says its help is needed most, providing health care to 2,4-million patients and education to 320 000 students last year.

IFC's loans and investment in companies located in poor or politically unstable countries rose 20% to $1,5-billion last year. Investment in projects located sub-Saharan Africa alone increased “nearly” 60% last year to $700-million.

IFC's net income dropped 37% from the 2005's record profit to $1,28-billion partly because of a non-recurring income in fiscal 2005 from “changes in carrying the value of equity investments,” the report said.