(Maldives, October 9th, 2019): The International Islamic Trade Finance Corporation (ITFC), has signed a major US$1.5 billion framework agreement with the Republic of Maldives. The five-year framework agreement, signed by the CEO, Eng. Hani Salem Sonbol and the Maldives’ Finance Minister, Mr. Ibrahim Ameer, mobilises financial resources of up to US$1.5 billion over five years for the country’s fuel sector.
In addition to fuel, the agreement also provides for integrated trade solutions in other key sectors such as fisheries, where ITFC will combine trade development interventions alongside transactional financing to support local fishing communities. The signing was graced by the presence of the President of the Republic of Maldives, His Excellency Ibrahim Mohamed Solih.
In his speech Eng. Hani Salem Sonbol commented:
“The stable supply of fuel and fuel products is a critical economic growth component for the Maldives, particularly in the facilitation of trade and import/export activity as well as to sustain energy generation for the country. ITFC is also enhancing its relations with the Maldives by diversifying into other sectors of importance, such as fisheries and adding trade development components to its interventions. This high-level framework agreement reflects ITFC’s commitment towards supporting sustainable development in the Maldives, whilst also promoting regional connectivity through the flow of Intra-OIC trade.”
During the signing ceremony, Minister of Finance, Mr Ibrahim Ameer thanked ITFC for their generous support for the development of Maldives and renewed his hopes for a future filled with successful collaborations.
ITFC already finances approximately 80 per cent of the country’s energy imports through the State Trading Organization PLC. The fuel sector is particularly important as an economic enabler in the Maldives and a major percentage of the Maldivian population will be provided with reliable access to electricity through electricity generation from fuel financed by ITFC.
The Maldives’s two major contributors to GDP – tourism and fishing – also rely heavily on fuel. The new agreement enables ITFC to continue to contribute strongly towards the development of value chains within the country and between OIC member states through trade financing and programs targeting these all-important sectors.
About the International Islamic Trade and Finance Corporation (ITFC)
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the purpose of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving the socio-economic conditions of the people across the world. Commenced operations in January 2008, ITFC has since consolidated all trade finance businesses that used to be handled by various windows within the IsDB Group. Earning the A1 rating by Moody’s reflects the Corporation’s efficiency in service delivery by responding swiftly to customer needs in a market-driven business environment.
Since 2008, ITFC has provided more than US$45 billion of trade financing to OIC Member Countries, making the Corporation the leading provider of trade solutions for OIC Member Countries’ needs. With a mission of being a catalyst for trade development among OIC Member Countries and beyond, the Corporation helps entities in Member Countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to successfully compete in the global market.