Maldives has signed a trade financing facility agreement worth USD 75 million, with the International Islamic Trade Finance Corporation (ITFC).

The agreement was signed on Thursday, during the 46th Islamic Development Bank (IsDB) Annual Meetings held in Tashkent, Uzbekistan, where Managing Director and CEO of State Trading Organization (STO), Hussain Amru Mohamed Rashad signed the agreement on behalf of the organization, whereas Hani Salem Sonbol, the CEO of ITFC signed on behalf of the finance corporation.

The USD 75 million ‘Murabaha’ trade financing facility agreement revolves around the financing of strategic commodities of petroleum products alongside staple food.

According to the finance corporation, the trade agreement will prove to be an important aspect in the government’s efforts to revive the country’s economy, which has been in a muddle due to the challenges faced by the Covid-19 crisis. As such, the financing will be critical to support the livelihoods of Maldivian communities as well as providing support for the government’s steady efforts towards economic recovery post-pandemic.

ITFC, through which the trade financing will be carried out, is a member of the IsDB, established with the purpose to advance trade among member countries of the OIC, which in turn will contribute immensely to the principal goal of enhancing socio-economic conditions globally.

Since 2019, STO has been cutting back on expenses and in turn observed a hike in net profits. This has led to a spike in confidence from international companies and organizations with which STO carries out business and trade.

While ITFC is a corporation that has been paving trade facility for STO for years, the links between both companies have noticeably flourished during the management of the current MD.

The Maldivian delegation that took part in the IsDB Annual Meetings is led by the Ministry of Economic Development, Fayyaz Ismail, and comprises of STO Board of Director Shimad Ibrahim, Chief Financial Officer Mohamed Nizam and Manager of Finance at STO Aminath Shamrath.

As part of the trip, Minister Fayyaz also sat down with the ITFC CEO, Salem where discussions were held regarding ways through which efforts may be enhanced towards strengthened collaboration between the Maldivian government and ITFC.