Interim funds to be scaled up through close collaboration with strategic partners to offer trade finance and trade development solutions that meet the direct needs of member countries 

(Jeddah, KSA, April 06 2020)– Societies and economies are being affected by the unprecedented and unpredictable nature of the COVID-19 pandemic. These include a major shift in global trade routes, changes in consumption and extraordinary levels of monetary easing and stimulus packages at a scale never experienced before. The International Islamic Trade Finance Corporation (ITFC) is moving quickly to consolidate efforts to mitigate the socio-economic risks that the virus poses to all our stakeholders in member countries of the Organization of Islamic Cooperation (OIC).

As we assess how COVID-19 affects the work we do and the impact on member countries, ITFC is engaging closely with government stakeholders, partners, businesses and the financial institutions we work with. That dialogue enables us to respond in a coordinated manner to soften the economic fallout. This is in addition to practical measures that have already been taken.

ITFC has moved quickly to put in place emergency financing measures to ensure that member countries continue to receive the support needed. Our COVID-19 ‘Rapid Response Initiative’ (RRI) has made US$ 300 million immediately available. 

ITFC is also responding to the different requests made by Member Countries to provide immediate crisis-related technical assistance programs, including capacity building for medical personnel and capacity enhancement of laboratories. ITFC is also assisting in sourcing medical equipment and medicines from its network.

These funds are being directly funneled towards eligible OIC member countries in most need of support – for critical supplies of energy, healthcare, food security and other life support requirements. ITFC is in continuous consultations with OIC member countries to ascertain their most pressing needs as the pandemic unfolds.

An additional fund – the ‘Recovery Response Program’ (RRP) – earmarks another $550 million for deployment over the next two years. The RRP is aimed at fixing the socio-economic damage which is expected to last longer than immediate impact of the virus.

ITFC is actively engaging international, regional and local partners as a strategic means of scaling these interim financing measures to contribute to the critical needs of the member countries and where necessary, on the mobilization of trade development support services during the pandemic. This includes helping OIC member countries with strategies for the control and production of healthcare facilities.

ITFC employees continue to work remotely through virtual platforms and other online means of communication, to ensure business is running as usual. We remain fully engaged and responsive to the business and socio-economic needs of the many millions of people we serve.

Whilst the challenges and impact of COVID 19 continue to evolve, we are certain by uniting and standing in solidarity with our member countries, we will overcome the crisis.

ITFC were winners of the 2020 TFG International Trade Finance Awards, in cooperation with BAFT. Read their interview here.

Latest Covid-19 updates

  • Shippers navigate a troubled market
    If you read the international shipping media during the final quarter of 2022, you would be forgiven for thinking that it’s “Game Over” for international trade.
  • Global trade finance – reasons to be hopeful in 2023
    In TFG’s conversations with industry experts, we have learned quite a lot about trade volumes and commodities, trade technology, and trade credit insurance. While there is plenty of uncertainty regarding the global outlook in 2023, it is clear that there are many areas of optimism for international trade.
  • 21 banks report credit risk trade back to pre-pandemic levels, new ICC Trade Register 2022 reports
    ICC Trade Register confirms that for larger banks, credit risk in trade, supply chain, and export finance fall back to pre-pandemic levels.
  • VIDEO | Trade in emerging markets: managing the opportunities and risks
    At ITFA 2022, Trade Finance Global (TFG) spoke to Lucio Lopez, managing partner of one of Brazil’s leading commercial law firms, about how businesses looking to expand into emerging and developing markets like Asia, Africa, or Latin America.
  • Can Europe be the first carbon-neutral continent?
    The aim of the strategy – to “make Europe the first carbon-neutral continent” – was always ambitious. The question now is whether the events over the last 30 months have put the targets out of reach.
  • African trade finance enters an exciting new phase
    It is often debated whether the reported existing trade finance gap, which over the last 3 years has oscillated between $100 billion and $120 billion, will diminish or whether the nature of illiquid, growth-focused, emerging market economies means that the gap will never truly close.