The International Islamic Trade Finance Corporation (ITFC) has extended a loan of US$ 15 million to the State Trading Organization (STO) of Maldives. The loan was granted to assist in the procurement of food items and medical equipment amid the COVID-19 pandemic.
The ITFC has introduced a US$ 300 million package to assist countries in their fight against the COVID-19 pandemic. The package is part of the US$ 2.3 billion assistance announced by the Islamic Development Bank (IDB).
The government-owned enterprise said the timely loan will assist in the purchase of 'Immediate Life-saving Front Line Personal Protective Medical Equipment'. The financing and grant provided by ITFC will help STO to procure staple foods, and personal protection equipment such as anti-fog face shields, safety goggles and protective uniforms.
STO's Managing Director Hussain Amr Mohamed Rashad said the Maldives began preparing for COVID-19 during the early stages of the pandemic, and that a risk assessment was conducted and a national response guideline as well as a health emergency coordination committee was established. He further noted that the government was quick to make arrangements to ensure the country has testing capacity, and an adequate amount of test kits. The grant extended to STO by ITFC will further strengthen the government's risk assessments, screening and contact tracing processes and testing capacity, said Amr.
This is not the first time ITFC has extended such financing to STO. The organization arranged a US$ 100 million credit facility to STO in 2017.
