Islamic Trade Finance Corporation (ITFC) officially has accepted the membership application from the Maldives.
The application of the Maldives for ITFC membership was officially accepted at the Governor's Plenary Sessions held as part of the 46th Annual Meeting of the Islamic Development Bank Group (IsDBG).
Minister of Economic Development Fayyaz Ismail attended the sessions as the head of the Maldives delegation and the acting governor of IsDB. Furthermore, Minister Fayyaz met with the CEO of ITFC Hani Salem Sonbol and discussed ways for working towards more robust collaboration with the Government of the Maldives.
Maldives receive significant financial assistance and expertise from ITFC as a member of the Organisation of Islamic Cooperation (OIC). As such, State Trading Organisation (STO) signed an agreement for a USD 75 million trade financing facility with ITFC for the purchase of oil and staple food.
Additionally, the Government of Maldives and ITFC signed a USD 1.5 billion Framework Agreement in 2019, to facilitate collaboration in trade and economic development. The Framework Agreement assisted the Maldives to manage its foreign exchange needs and enable the establishment of a stronger value chain within the country and between its partners in the OIC through trade financing programmes targeting the main sectors. The agreement also provided a substantial avenue for growth for small and medium enterprises (SMEs) in the country.
ITFC has been a major financier for the Maldives, financing approximately 80 percent of its energy imports since its establishment as an autonomous entity within the IsDB in 2008.