ITFC Signs Important Agreements With STO & MIFCO

Yesterday, International Islamic Trade Finance Corporation (ITFC) signed two landmark agreements with the Republic of Maldives. ITFC holds membership of the Islamic Development Bank Group (IsDB) and the agreements were signed with STO and MIFCO to support the commodities sector in the country. Currently, the Chief Executive Officer (CEO) of ITFC, Eng. Hani Salem Sonbol is on an official visit to the Maldives.

A trade financing agreement was signed between STO and ITFC to renew and increase existing Murabaha trading facility. This will provide support in procuring necessary essentials such as petroleum products, staple foods, medicine and medical equipment to the country as it recovers from the economic repercussions of the COVID-19 pandemic.The agreement was signed by Chief Executive Officer and Managing Director of STO, Mr. Husen Amru Mohamed Rasheed and CEO of ITFC, Eng. Hani Salem Sonbol.

A Memorandum of Understanding (MoU) was also signed between Chairman of MIFCO, Mr. Husen Amru Mohamed Rasheed and CEO of ITFC, Eng. Hani Salem Sonbol. The MoU will facilitate the provision of trade-related technical assistance to MIFCO, improving its competitiveness and accessibility in international markets. The fishing industry is a main sector of the Maldives, with half the country’s workforce employed in the sector.

Speaking at the ceremony, CEO of ITFC, Eng. Hani Salem Sonbol remarked “ITFC is extremely pleased to sign its largest syndicated trade finance agreement with STO to finance the import of strategic commodities during the recovery from the pandemic. The MoU with MIFCO is also a major milestone given the fishing sector’s importance to the economy. Capacity building and technical assistance initiatives offered to MIFCO is expected to boost competitiveness. We look forward to continuing trade finance and development support to Maldives.’

STO CEO, thanked ITFC for its continued support, highlighting that the renewal of enhanced facility comes at a critical time as global commodity prices soared due to Russia-Ukraine war. The facility will enable to ensure energy, food and medicine security in the country, while supporting economic stability and growth in key sectors.

On this occasion, ITFC also declared the Republic of Maldives as a member country of the International Islamic Finance Corporation.