The International Islamic Trade Finance Corporation (ITFC) has provided a $189 million financing scheme to the State Trading Organization (STO).
The financing scheme was arranged under the Murabaha Islamic financing model. Under the financing scheme, STO will purchase oil, medicines, staple food, and medical equipment.
STO's Managing Director Hussain Amr signed the agreement on behalf of the company at a ceremony held Sunday. An additional agreement related to the deal was signed between MIFCO and ITFC. The agreements were signed on behalf of ITFC by its CEO, Hani Salem.
After the signing ceremony at Hotel Jen on Sunday, Amr said the scheme would provide facilities to MIFCO and increase the benefits to fishermen. It also ensures access to basic goods, he said.
"This is a huge help to the Maldives to overcome its current economic challenges," Amr said.
This is not the first time ITFC has provided assistance under the Islamic financing model. A $100 million credit facility was provided in 2017, a $1.5 billion finance scheme in 2019, and a loan in 2020.
The Cabinet decided on May 24 this year to become a member of the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (ISDB) group. The Maldives was appointed an official member of the ITFC at the Islamic Development Bank (ISDB) Annual General Meeting held in Uzbekistan earlier this month.
