The Government of the Maldives and the International Islamic Trade Finance Corporation (ITFC) yesterday signed a $1.5 billion financing framework agreement.
Under this five-year agreement, trade financing facilities will be arranged for the government and private businesses through Maldivian banks.
According to the Finance Ministry, $1.5 billion was initially allocated under the first five-year agreement with the ITFC spanning 2019 to 2024. However, the Ministry noted that the Maldives utilized $1.7 billion in assistance during that period. Since 2008, the institution has provided a total of $3.3 billion in financial assistance to the Maldives.
The new framework will provide financial support for the import of food and other essential commodities, as well as for expanding the country's export trade. The Finance Ministry stated that these opportunities will be available to state-owned enterprises and eligible private companies through local banks.
The Ministry further noted that the agreement includes provisions for trade-related technical assistance and projects aimed at enhancing the capacity to bring Maldivian products to international markets.
Speaking at the signing ceremony, Minister Hassan Zareer highlighted that the assistance provided by the ITFC to the Maldives has expanded significantly since its inception. He noted that while support was previously focused on the energy sector, it now covers the import of food and medical supplies, as well as support for the fisheries sector and small and medium enterprises (SMEs).
The Minister emphasized that the trade finance facility provided to STO since 2017 has facilitated the uninterrupted procurement of essential goods required by the Maldives.
ITFC CEO, Eng. Adeeb Y. Al Aama, stated that the signed agreement would further strengthen the relationship between Maldivian banks and the private sector.
During his visit to the Maldives, he also met with President Mohamed Muizzu and the Governor of the central bank, Ahmed Munawar, to discuss strengthening cooperation across various economic sectors.
The ITFC is a member of the Islamic Development Bank (IsDB) Group. The primary objective of the corporation is to promote trade among Islamic countries and improve socio-economic conditions. Since 2008, the institution has provided more than $100 billion in financing assistance to its member countries.
