The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, has approved a US$5 million Murabaha Financing Facility in favour of Bank of Maldives to support the Bank’s private sector businesses, particularly SMEs importing raw materials from the international markets.
Bank of Maldives is the first partner institution in the Maldives to work with ITFC as it expands its financing outreach to the private sector through local banks in the country. The financing comes at a critical time as SMEs in the Maldives and other OIC member countries face the social and economic effects of the coronavirus pandemic, which has disrupted global trade and strained financial resources.
Bank of Maldives CEO and Managing Director, Tim Sawyer commented “While the economy has been severely impacted by the COVID-19 pandemic, the Bank has continued to take proactive measures to support local businesses. We are delighted to extend this support further with our partnership with ITFC to provide US$5 million in trade financing for our business customers. The facility will help make a positive contribution to the development of the local business sector.”
Commenting on the Murabaha Financing Facility, Eng. Hani Salem Sonbol, ITFC CEO, said: “We are proud to partner with Bank of Maldives in supporting SME growth and the import of raw materials. A central tenet of the ITFC strategy is to facilitate lines of financing to local partner financial institutions like Bank of Maldives to provide SME access to working capital that is key for the country’s economic growth and their ability to participate in global value chains. As such, it is contributing to the development of intra-OIC trade flows and ultimately leading to socio-economic development in member countries.”
The financing and grants being rolled out by ITFC, as part of the IsDB Group COVID-19 Response Package, are supporting preparedness for the pandemic through the provision of medical supplies, staple foods and fertilizer for agricultural production to OIC countries including Bangladesh, Egypt, Kyrgyzstan, the Maldives and Senegal.