Saudi: ITFC, ISFD announce $150mln support programme for LDMCs

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Riyadh - The International Islamic Trade Finance Corporation (ITFC) and the Islamic Solidarity Fund for Development (ISFD), members of the Islamic Development Bank (IsDB) Group, penned a $150 million Mudaraba deal.

The trade finance support programme seeks to back the least developed member countries (LDMCs) that are affected by the COVID-19 pandemic and the food security crises, according to a press release.

Benin, Burkina Faso, The Gambia, Mali, and Senegal are among the initial countries to benefit from the Mudaraba agreement. This is in addition to Sierra Leone, Togo, Chad, Comoros, Djibouti, Mauritania, and Uganda.

The initiative aligns with the objectives of IsDB's programmes on strategic preparedness (SPRP) response to food security (FSRP) to meet the LDMCs' needs for medical and food supplies through sovereign trade finance.

Furthermore, the partnership aims to endorse small and medium enterprises (SMEs), as they are considered the backbone of many economies of IsDB member states, particularly those severely affected by the global crises.

Hiba Ahmed, Director General of ISFD, said: "This programme presents an innovative approach in addressing one important dimension of the multidimensional aspects of poverty which is the requirement to strengthen the economic resilience of our member countries through the empowerment of youth, women, and [Ministry of Micro, Small, and Medium Enterprises] MSMEs."