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ITFC extends financial support for STO, MIFCO

Mohamed Rehan
25 September 2022, MVT 20:34
During Sunday's MoU signing between STO and ITFC-- Photo: Fayaz Moosa | Mihaaru
Mohamed Rehan
25 September 2022, MVT 20:34

Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank Group (ISDB), extends their financial assistance to State Trading Organization (STO).

ITFC signed the memorandum of understanding with the largest Maldivian state-owned enterprise (SOE) on Sunday, September 25 towards funding for essential purchases.

Under the agreement, on the concept of Murabaha through the Murabaha trade facility, STO will receive essential supplies including medicine, fuel and staple foods on a reduced-rate credit scheme. The financial assistance is reportedly worth USD 189 million.

STO Chief Executive Hussain Amru signed on behalf of the SOE, while ITFC Chief Executive Ang Hani Saleem Sombol signed on behalf of the financial institute. The MoU signing took place on Sunday afternoon, at Jen Maldives Male' by Shangri-La.

The ITFC's olive branch is part of the efforts by the institute in helping countries to bounce back after the Covid-19 pandemic.

STO earlier took a similar Murabaha trade facility worth USD 175 million through ITFC.

Additional to the arrangement with STO, a second agreement was signed with Maldives Industrial Fisheries Company (MIFCO) towards development and expansion of the fish processing company.

Apart from capacity extension and development of MIFCO, the agreement serves as a funding for the company to improve its export destination portfolio.

STO Chief Mr. Amru highlighted the importance of a financial assistance at within the current circumstances. He notes such a financial aid amid surging productivity and consumer costs globally meant as a silver lining for progressive growth of the SOEs.

Amru further made emphasis on the developmental scope for MIFCO with the financial aid. He notes the assistance will help rejuvenate the fisheries industry in the Maldives stronger than before.

Meanwhile, ITFC CEO announced Maldives a member of the group. Becoming a member comes with all the benefits of other member nations to ITFC.

The signing ceremony was graced by Ministry of Finance Ibrahim Ameer, who is also the ISDB governor.

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