Getting DFC done

Who remembers bipartisanship? It was back for a brief moment last week when U.S. lawmakers launched the process last week to reauthorize the U.S. International Development Finance Corporation, or DFC.

Republicans and Democrats agreed that DFC, which finances private sector development solutions, can help provide an alternative to Chinese investment.

Now it just needs reauthorization before its current mandate expires in October.

DFC committed more than $12 billion across 181 transactions last year. So far, reauthorization discussions have recommended at least doubling lending capacity to $120 billion, if not more.

Among other topics up for debate:

• Whether to count equity investments as grants as currently, requiring full appropriations, or as loans, which would allow less money to be held back to offset potential losses.
• Expanding investments to strategic upper-middle- and high-income countries, such as Panama.

Devex Senior Reporter Adva Saldinger will be watching developments closely.

Read: Congressional hearing kicks off DFC reauthorization efforts