The International Islamic Trade Finance Corporation (ITFC) has signed a $150 million Framework Agreement with one of its newest members, the government of Turkmenistan.

Signed as a three-year deal, the Framework Agreement will support bilateral cooperation to finance the import of essential commodities, and will support Turkmenistan’s agricultural and textile sectors.

In a press statement, the ITFC said the agreement will also focus on providing access to finance to Turkmenistan’s private sector, particularly its small and medium-sized enterprises (SMEs).

The agreement, signed in a virtual ceremony yesterday, follows the approval of Turkmenistan’s application to join the ITFC, which was granted at the ITFC General Assembly in September 2021.

The ITFC General Assembly was held during the Annual Meeting of its parent organisation, the Islamic Development Bank (IsDB) Group – a multilateral lending institution.

With a focus on trade promotion, trade capacity-building, and trade cooperation, both parties said the agreement is designed to complement Turkmenistan’s national economic priorities and development plans.

“We see a membership in ITFC as a good platform to enhance inter- and intra-regional trade activity, and to enable our private sector to grow at a faster pace,” said Rahimberdi Jepbarov, chairman of the board at the State Bank for Foreign Economic Affairs of Turkmenistan.

“We are glad to be a member of ITFC as it offers us new opportunities in trade,” added Jepbarov, who is also the governor of the IsDB for Turkmenistan.