USD 1.5B agreement with ITFC to finance public and private sector trade operations

The Government of Maldives and the International Islamic Trade Finance Corporation (ITFC) have signed a new five-year Framework Agreement that will facilitate the mobilization of up to USD 1.5 billion to finance public- and private-sector trade operations in the Maldives.

The agreement, which covers the period from 2026 to 2031, was signed at the Finance Ministry in Malé during an official visit by ITFC Chief Executive Officer Eng. Adeeb Yousuf Al Aama.

Finance Minister and Islamic Development Bank Governor for the Maldives Hassan Zareer signed the agreement on behalf of the Maldivian government.

Under the framework, financing will be provided for the import and export of essential and strategic commodities, as well as trade financing for state-owned enterprises and eligible private-sector companies.

The agreement also allows for financing lines to be established through Maldivian financial institutions, enabling expanded support for small and medium-sized enterprises and other private-sector businesses.

Beyond financing, ITFC and the government will explore trade-related technical assistance, advisory services and initiatives designed to strengthen trade capacity and improve access to international markets. These programs will be aligned with the Maldives’ national development priorities.

Minister Zareer said ITFC’s support for the Maldives had grown significantly since the institution’s establishment, evolving from assistance focused on the country’s energy needs into a broader partnership encompassing trade and development.

According to the Minister, the partnership now supports the import of staple food and medical supplies while contributing to the development of key economic sectors, including fisheries and SMEs.

He identified the rollover trade finance facility extended to State Trading Organization PLC since 2017 as a key component of the partnership.

“This mechanism continues to provide vital liquidity support, ensuring uninterrupted bulk procurement of essential commodities and guaranteeing operational predictability for state trade,” Minister Zareer said.

He added that ITFC had remained one of the Maldives’ most reliable development partners during periods of volatility in global markets.

ITFC CEO Al-Aama said the new framework builds on a partnership developed over several years and will broaden cooperation with Maldivian financial institutions and the private sector.

“Through the agreement, ITFC will work with the government and its partners to mobilize financing for essential trade while expanding our cooperation with the private sector and financial institutions,” he said.

The latest agreement follows the first five-year Framework Agreement signed between ITFC and the Maldives in 2019, which concluded in October 2024. During that period, ITFC approved US$1.7 billion and disbursed USD 1.5 billion in financing to the Maldives.

Since beginning operations in 2008, ITFC has approved more than USD 3.3 billion in financing for the Maldives. The funding has supported the import of petroleum products, food commodities, medical supplies and construction materials, in addition to financing private-sector operations.

During his visit, Al-Aama held meetings with President Dr Mohamed Muizzu, Minister Hassan Zareer and Maldives Monetary Authority Governor Ahmed Munawar. Discussions centred on strengthening cooperation in trade finance and supporting the Maldives’ broader economic priorities.

The ITFC delegation also met with representatives of STO, the corporation’s principal financing partner in the Maldives.

The delegation visited STO’s perishable and staple-food warehouse facilities in Malé, as well as the Funadhoo Oil Terminal, to review operations associated with commodities financed through ITFC facilities.