The International Islamic Trade Finance Corporation, member of the Islamic Development Bank Group, has approved a $5m Murabaha Financing Facility in favour of Bank of Maldives to support the bank’s private sector businesses, particularly Small and Medium Enterprises 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 Organisation of Islamic Cooperation member countries face the social and economic effects of the coronavirus pandemic, which has disrupted global trade and strained financial resources.
Bank of Maldives’ Chief Executive Officer 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 $5m in trade financing for our business customers.
“The facility will help make a positive contribution to the development of the local business sector.”
Also speaking on the agreement, 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 fertiliser for agricultural production to OIC countries including Bangladesh, Egypt, Kyrgyzstan, the Maldives and Senegal.
