Motion seeking parliamentary consideration to join ITFC sent to committee

Motion submitted by President Ibrahim Mohamed Solih seeking parliamentary approval for Maldives to join Islamic Trade Finance Corporation (ITFC) has been sent for further review to Parliament’s Committee on Foreign Relations.

President Solih’s motion seeking parliamentary approval for Maldives to join ITFC, submitted via a letter, was read out at today’s parliamentary sitting by the Secretary General of People’s Majlis, Fathimath Niusha. 

The letter read that during a cabinet meeting held on May 24, discussions were held on whether to join or not to join ITFC – following which he had decided to seek parliamentary approval regarding the matter.

With reference to this, President Solih had requested the parliament to review the request and inform back their decision.

The ITFC is a member of the Islamic Development Bank (IsDB), established with the aim of advancing trade among the Organisation of Islamic Cooperation (OIC) member countries, which would contribute to the overarching goal of improving the socio-economic conditions of people across the globe.

Additionally, the ITFC’s trade finance division provides Shariah-compliant trade financing for OIC members, focusing on financing intra-trade between the member countries.

Though not an official member, Maldives has been engaged with ITFC since 2005. In 2005, ITFC granted the Maldives US$20 million as a tsunami relief package.

Over the years, ITFC continued to offer the Maldives trade financing assistance, the latest of which was provided in May 2020 during the Covid-19 pandemic—the corporation granted Maldives a total of US$20 million for procuring staple foods and medical supplies. A designated sum of US$5 million from the total amount contributed in 2020 was allotted for assisting Small and Medium Enterprises (SMEs) that were affected by the pandemic.