Maldives and ITFC sign $1.5 billion trade financing framework

The Maldives and the International Islamic Trade Finance Corporation (ITFC) signed a $1.5 billion framework agreement on Sunday to support trade financing for the government and businesses, including through banks in the country.

The five-year agreement, running from 2026 to 2031, was signed at the Finance Ministry during an official visit by ITFC chief executive Adeeb Yousuf Al-Aama.

Finance Minister Hassan Zareer, who also serves as the Maldives’ governor to the Islamic Development Bank, signed on behalf of the government.

According to the ministry, the framework will support imports of food and other essential goods and help expand exports. Companies with government shareholdings and eligible private businesses will be able to access financing opportunities through banks.

The agreement also provides for trade advisory services, technical assistance and programmes to help Maldivian producers reach international markets, in line with the country’s development goals.

It follows the first five-year framework agreement, which covered 2019 to 2024. Financing used under that agreement reached $1.7 billion, exceeding the $1.5 billion initially allocated. ITFC has provided a total of $3.3 billion in financing to the Maldives since 2008.

Speaking at the ceremony, Zareer said ITFC’s support for the country had expanded from its initial focus on energy to trade and development. This now included food and medical imports, fisheries and support for small and medium-sized businesses.

He highlighted the trade finance facility provided to the State Trading Organisation (STO) since 2017 as a part of the partnership. He said the financing helped maintain purchases of essential goods and supported the continuity of the state’s trading operations.

Al-Aama said the agreement reflected years of cooperation and would strengthen ITFC’s relationships with Maldivian banks and the private sector.

During his visit, he met President Mohamed Muizzu, Zareer and Maldives Monetary Authority Governor Ahmed Munavvar to discuss economic cooperation. He also met STO’s management and visited some of its facilities.

ITFC is a member of the Islamic Development Bank Group. It began operations in January 2008 to promote trade among Organisation of Islamic Cooperation (OIC) member countries and support social and economic development.

The corporation has provided more than $100 billion in financing to OIC members since it began operations. Alongside financing, it provides training and resources to help businesses compete in international markets.