Maldives yesterday signed a new USD 1.5 billion framework agreement with the International Islamic Trade Finance Corporation (ITFC) to arrange the trade financing needed by Maldivian businesses.
The five-year agreement, running from this year through 2031, was signed during a special ceremony held at the Ministry of Finance during the official visit of ITFC CEO Engineer Adeeb Yousuf Al Aama to the Maldives. Finance Minister and Maldives’ Governor to the Islamic Development Bank Hassan Zareer signed on behalf of the Maldivian government.
Under the agreement, trade financing opportunities will be made available to private businesses and government shareholding companies through the government and Maldivian banks. Additional financial support will also be provided to import food and other essential goods and to expand trade in Maldives’ export products. Projects to provide technical assistance related to trade and to build the capacity needed to take Maldivian products to international markets will also be taken forward.
This is a new agreement signed following the end of the first five-year agreement that ran from 2019 to 2024. Although USD 1.5 billion was allocated under the previous agreement, a total of USD 1.7 billion was utilised. Since 2008 to date, the corporation has provided USD 3.3 billion in financial assistance to the Maldives. Support that previously targeted only the energy sector has now been expanded to food, pharmaceuticals, fisheries, and small and medium enterprises as well.
During the ITFC CEO’s visit to the Maldives, he met President Dr Mohamed Muizzu and Maldives Monetary Authority Governor Ahmed Munawar and held discussions on strengthening economic ties. ITFC, an institution of the Islamic Development Bank Group, has provided more than USD 100 billion in financing assistance to promote trade among Islamic countries since 2008.
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