A financing framework agreement worth USD 1.5 billion was signed yesterday between the Maldivian government and the International Islamic Trade Finance Corporation (ITFC).
Under the five-year agreement, arrangements will be made for trade financing facilities required by private businesses and the government via Maldivian banks.
The agreement, which has been put in place until 2031, was signed by CEO Engineer Adeeb Yousuf Al Aama at a ceremony held at the Ministry of Finance and Public Enterprises during his visit to Maldives.
Finance Minister Hassan Zareer signed on behalf of the government.
The ministry stated that financial aid to import food stuff and other essential goods, and financial aid for businesses that export goods will be provided under the framework.
Additionally, the Finance Ministry said that state-owned enterprises (SOE) and private companies that meet the requirements will see more opportunities from the trade facility that will be provided by the banks. The ministry went on to say that technical assistance related to the business and guidance will be offered, along with starting projects that are in line with developmental goals such as increasing capabilities that are required to bring Maldivian products to the international market.
During yesterday's ceremony, Minister Zareer said that the aid ITFC has been offering Maldives since the formation of the company has greatly expanded.
Minister Zareer said the company would previously only focus on and provide aid to the energy industry, but that they have switched their focus to the business and development industries, which includes importing food stuff and medical equipment, along with providing aid for the growth of fisheries and small and medium enterprises (SME).
The minister highlighted the trade financing facility that has been provided to the State Trading Organization (STO) since 2017, which by his words is an important part of their professional relationship. The minister said that due to the facility, funding will be set up for essential products required by Maldives without interruption, and will facilitate sustainable business transactions for the SOEs.
ITFC's CEO stated that the agreement that was signed yesterday is the result of a long-standing relationship and because of it, the relationship between Maldives' banks and the private sector will be strengthened further.
The five-year agreement the CEO spoke of was regarding the end of the one signed from 2019 to 2024.
Even though USD 1.5 billion in aid was granted to Maldives by the ITFC under the previous agreement, USD 1.7 billion was used. And from 2008 until now, the corporation has given a total of USD 3.3 billion in financial aid to Maldives.
During Adeeb Yousuf Al Aama's visit to Maldives, he met with President Dr. Mohamed Muizzu, Finance Minister Zareer and Governor of the Maldives Monetary Authority (MMA) Ahmed Munawar and discussed how the relationship with the economic industries can be strengthened, said the ministry.
