what was the overseas private investment corporation opic 
the overseas private investment corporation opic was a u s development finance institution this government agency assisted private businesses that wanted to invest abroad opic encouraged development in emerging markets through private sector investment overseas by assisting corporations to analyze and manage risks while encouraging development in emerging markets this helped the agency advance the country s foreign policy and national security goals opic was consolidated with the u s agency for international development s usaid development credit authority to form the u s international development finance corporation in 2019 1understanding the overseas private investment corporation opic the overseas private investment corporation was established in 1971 as a u s government agency under then president richard nixon 2 it was the country s one and only development finance institution dfi and was based in washington d c dfis are government owned organizations that invest in private sector projects and promote national interests 3as the country s dfi opic helped private sector investment abroad opic backed projects were reinforced and aligned with u s foreign policy they fostered economic and political stability along with free market ideals especially in conflict ridden areas 45its initial portfolio included political risk insurance worth 8 4 billion along with 169 million in loan guarantees that portfolio expanded to more than 20 billion reaching out to more than 160 different developing countries 2 direct loans and guarantees ranged from a few million to 350 million for up to 20 years in underserved areas without easy access to commercial financing 5funding was only provided to companies with a sound business model for which it charged market based fees this allowed the agency to operate without the need for any taxpayer assistance the agency reported that it actually generated money for american taxpayers contributing as much as 3 7 billion toward reducing the national deficit between 2006 and 2016 5according to opic s operating statute the projects it helped could not cause job loss in the united states 4special considerationsas mentioned above opic was consolidated with usaid s development credit authority to form the u s international development finance corporation dfc in 2019 the merger was realized after the passing of the better utilization of investments leading to development act was passed on oct 5 2018 the new entity allows the use of newer and more innovative financial products to help distribute private capital to developing economies 1just like its predecessor dfc aims to advance the interests of american foreign policy and national security as the private sector helps the development of emerging market economies it accomplishes this through political risk insurance and debt financing comprising of direct loans and guarantees of up to 1 billion for up to 25 years it also provides the dfc allows private sector investment in several sectors including energy health care critical infrastructure technology businesses are required to meet specific standards and have an established history in their specific industries 1