The International Islamic Trade Finance (ITFC), a member of the Islamic Development Bank Group (IsDB) signed two landmark agreements to support essential commodities sector in the Maldives.
The landmark agreement signing were witnessed by Minister of Finance and IsDB Governor Ibrahim Ameer, during an official visit of Eng. Hani Salem Sombol, the Chief Executive Officer of ITFC.
ITFC signed a USD189 million financing facility with State Trade Organization (STO), with the latter’s Chief Executive Officer Mr. Hussain Amru signing on behalf of the Maldivian state-owned enterprise (SOE). STO attests this financing, which is a renewal and increment on the existing Murabaha trade facility, will provide support for the procurement of petroleum products, staple food, medicine, and medical equipment. These provisions are acquired to better aid Maldivian economic recovery efforts post Covid-19 pandemic’s blow.
A second agreement was signed with Maldives Industrial Fisheries Company (MIFCO). ITFC signed a memorandum of understanding (MoU) with the fisheries company to support MIFCO with relevant trade-related technical assistance. The arrangement is aimed to enhance competitiveness of MIFCO and its access to global markets.
Speaking at the signing ceremony, Mr. Sonbol said;
“ITFC is extremely pleased to sign its largest syndicated trade finance agreement with STO to finance the import of strategic commodities to support the recovery of the economy from the pandemic. Apart from the support extended on the trade financing front, the MoU with MIFCO is also a major milestone given the fishing sector’s strategic importance to the economy. Capacity building and technical assistance initiatives offered to MIFCO is expected to boost the fisheries sector’s competitiveness. We therefore look forward to continuing our trade finance and development support of the Maldives.”
STO CEO highlighted the successful long-standing partnership and cooperation between Maldives and ITFC. He had acknowledged the support ITFC provides to procure essential commodities.
Mr. Amru further expressed gratitude for the MoU signed with MIFCO, which he observes as an important step towards fisheries sector growth in Maldives.