The Government of the Maldives and the International Islamic Trade Finance Corporation (ITFC) has signed a Framework Agreement, valued at US$1.5 billion (MVR 23 billion), to facilitate collaboration in trade and economic development.
President Ibrahim Mohamed Solih attended the signing ceremony held on 9th October at Kurumba Maldives and witnessed the signing of the agreement.
The agreement was signed on behalf of the Maldives by Ibrahim Ameer, the Minister of Finance; and Hani Salem Sonbol, the Chief Executive Officer of ITFC.
Speaking at the ceremony, Minister Ameer stated that this Framework Agreement is expected to greatly assist 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 Organisation of Islamic Cooperation (OIC) through trade financing programmes targeting the main sectors. It would also provide a substantial avenue for growth for Small and Medium Enterprises (SMEs).
“Under this framework agreement, Maldives will receive USD 300 million each year for 5 years,” said Minister Ameer.
CEO Hani Salem Sonbol also made remarks at the ceremony, extending an official invitation for the Maldives to formally become a member of the corporation.
ITFC is an autonomous entity within the Islamic Development Bank Group (IsDB). Since its establishment in 2008, ITFC has been a major financier for the Maldives, financing approximately 80 percent of its energy imports through the State Trading Organisation (STO).