The portfolio retained its high quality in FY97, despite its record growth during the last few years and IFC's pioneering investments in new sectors and regions. To sharpen the focus on portfolio matters, the senior management structure was reorganized in FY97, and responsibility for portfolio management was given to one of the two operations vice presidents. More extensive use of local staff in resident missions for portfolio supervision is envisaged, particularly with the strengthening of certain offices such as those in Moscow and New Delhi.
Operational departments evaluate projects case by case when difficulties arise.
For proj-ects with particularly severe problems, IFC's special operations unit determines appropriate remedial action. In such situations, IFC seeks to negotiate agreements with all creditors and shareholders to allocate responsibilities, so that problems can be worked out while the project continues to operate. In exceptional cases, when the parties reach an impasse in negotiations, IFC takes all necessary and appropriate measures to protect its interests. The interest collection rate improved to 95.7 percent, from 94.8 percent at end-FY96. The larger disbursed loan portfolio and the improved interest collection rate contributed to strong growth in interest income.