The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, and the government of the Republic of Maldives have signed a new five-year Framework Agreement. ITFC is to mobilise up to US$1.5 B to support trade financing operations in the Maldives between 2026 and 2031.
The agreement was signed at the Ministry of Finance and Public Enterprises in Malé by Eng. Adeeb Yousuf Al-Aama, CEO of ITFC, and HE Hassan Zareer, Minister of Finance and Public Enterprises and IsDB Governor for the Maldives, during the ITFC CEO's official visit to the country.
HE Hassan said: "Since its establishment, ITFC has been a steadfast development partner to our nation. What began as crucial support for our energy requirements has evolved into a comprehensive partnership spanning the importation of staple foods and medical supplies, while catalysing growth in the vital sectors such as fisheries and SMEs.
"A key anchor of this relationship is the ongoing revolving trade finance facility extended to STO since 2017, which continues to provide vital liquidity support, ensuring uninterrupted bulk procurement of essential commodities and guaranteeing operational predictability for state trade. During periods of global volatility, ITFC has consistently proven to be among our most dependable development partners."
The State Trading Organization (STO) in the Maldives is a government-majority-owned trading company that handles national food security, fuel imports, and essential supplies, while SME refers to small and medium enterprise.
Eng. Al-Aama said: "This new Framework Agreement builds on a partnership that has developed over many years. Through the agreement, ITFC will work with the government and its partners to mobilise financing for essential commodities as well as support to the private sector through local financial institutions. We will continue to work with the Maldives on the trade financing priorities identified by the government whilst exploring further cooperation in the areas of trade development."
The new agreement follows the first five-year Framework Agreement between ITFC and the Maldives, signed in 2019 and concluded in 2024, during which ITFC approved US$1.7 B in funding. Since its inception in 2008, ITFC has approved more than US$3.3 B in financing for the Maldives for the import of petroleum products, staple food, medicine and medical equipment, and construction materials, alongside financing for the private sector.