A framework agreement has been signed between the government of Maldives and the International Islamic Trade Finance Corporation (ITFC) to facilitate collaboration in trade and economic development, worth USD 1.5 billion.

Speaking at the signing ceremony held at Kurumba Maldives on Wednesday, Minister of Finance and Treasury, Ibrahim Ameer who signed on behalf of the government, revealed that the agreement has been signed for a duration of five years.

The minister estimated USD 300 million out of the financial aid provided from ITFC to be allocated for different development projects, to be fanned out throughout the next few years.

ITFC’s financial aid will supposedly pave way to carry out more development projects, efficiently and help the government manage its foreign exchange needs as well as enable the establishment of a stronger value chain between partners in the Organization of Islamic Cooperation (OIC) through trade financing programmes targeting main sectors.

President Ibrahim Mohamed Solih attended the signing ceremony on Wednesday morning.

While the Chief Executive Officer (CEO) of ITFC Hani Salem Sonbol signed on behalf of the corporation, the agreement will provide a substantial avenue for growth for Small and Medium Enterprises (SME).

During the ceremony, CEO Sonbol extended an official invitation for Maldives to become a member of the corporation, formally.

Since establishment in 2008, ITFC has been a major financier for Maldives having financed approximately 80 percent of its energy imports through the State Trading Organization (STO). It is an autonomous entity within the Islamic Development Bank Group.