Maldives-ITFC agreement; will spend USD300m annually

The Maldives government will be issued USD300 million annually through the USD1.5 billion framework agreement between the state and Islamic Trade Finance Corporation (ITFC).

Following the signing of the agreement, the Maldives Minister of Finance Mr Ibrahim Ameer clarified that an amount of USD300 million will be issued to the state on annual terms for a period of five years in order to boost the country’s commerce and economy.

The use of this fund, will be detailed out and separate agreements will be created for each expense purpose.

“We have a lot of work that needs to be done in order to develop MIFCO. We need to increase the storage and the cannery capacity of MIFCO. Both MIFCO and STO are discussing with ITFC regarding possible outcomes and they have shared proposals regarding their need of increasing the facility’s space and capacity,” Mr Ameer said.

In addition to this, the ITFC’s assistance of the USD1.5 billion will have a portion of it invested in boosting the local Small-Medium Enterprises through increasing the fund capacity of SME Development Finance Corporation (SDFC).

State’s major and top priority projects have funds arranged for them, assured by the Minister of Finance and noted that the framework agreement with ITFC is a guarantee of arranging finances for projects in the coming years.

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