International Islamic Trade Financing Corporation (ITFC) has granted State Trading Organization (STO) a USD 75 million trade financing facility.
ITFC – a branch of Islamic Development Bank (IsDB) – had agreed to this grant following discussions held at a session of their annual general meeting yesterday. The meeting which kicked off last Wednesday at Uzbekistan’s capital Tashkent – is to conclude tomorrow.
The agreement pertaining to the financing facility was signed by ITFC’s CEO Hani Salem Sonbol on behalf of the Corporation. STO’s Managing Director Hussain Amru signed on behalf of the Company.
As per STO – the dollar trade financing facility signed is a Murabaha facility.
ITFC noted that the facility granted to STO is integral to the recovery of the Maldivian economy that has been trampled by the COVID-19 pandemic. The grant will be used to finance the strategic commodities of petroleum products and staple food.
Since 2019, STO has been successfully decreasing its running costs – and subsequently increasing profits. ITFC has played a key role in this journey – through the provision of financing facilities to the Company in multiple instances over several years time.