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IFC’s position for not financing these types of projects ranges from economic reasons to health and cultural concerns. A reasonableness test will be applied when the activities would have a significant development impact but circumstances of the country require adjustment to the IFC Exclusion List.

The financial institution cannot finance activities that fall on the IFC Exclusion List. Therefore, as part of its procedures, financial institutions are required to verify that the activities of a commercial client/investee are not on the IFC Exclusion List.

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