The International Islamic Trade Finance Corporation Starts Business
Dr Ahmed Mohammed Ali, President of the Islamic Development Bank Group, announced that the General-Assembly Meeting of the International Islamic Trade Finance Corporation (ITFC) will be held on February 24, 2007 in Jeddah.
Economy and Finance Ministers of IDB (56) Member Countries, and heads of financial institutions will attend the Meeting and officially launch ITFC.
The Board of Governors of the Islamic Development Bank had earlier announced plans to launch the International Islamic Trade Finance Corporation (ITFC) at its 31st Annual Meeting, held in Kuwait in May 2006. ITFC has an initial capital of US$300 million and will be headquartered in Jeddah, Saudi Arabia.
Dr Ahmed Mohammed Ali said “The inception of the International Islamic Trade Finance Corporation complements an initiative announced by Custodian of the Two Holy Mosques King Abdullah Bin Abdul Aziz during the Islamic Summit held in Malaysia during October 2003, and is in line with the suggestion of the UAE during the 29th Annual Meeting of the Board of Governors of Islamic Development Bank held in Teheran in September 2004. It is aimed at boosting the economic development of Member Countries by enhancing regional trade.”
“This initiative will work to alleviate economic burdens and combating poverty in the least developed Member Countries. ITFC will provide more resources to the Islamic Development Bank to finance exports and investments and secure necessary guarantees that will facilitate greater trade exchange regionally,” he added
The main objective of the International Islamic Trade Finance Corporation is to increase the modest Intra-Trade volume among Member Countries of the Organisation of Islamic Conference (OIC). ITFC will strive to develop and finance trading in accordance with the principle and provisions of Islamic law thus complementing the activities of the Islamic Development Bank.
Its activities will include developing and financing inter-regional trade, streamlining the development effect of trade financing operations and upgrading the capabilities of the member countries in the field of exports.
An independent organization, ITFC will monitor market trends and work to attain the Islamic Development Bank’s objectives through the launching of specialized funds.
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