The Islamic Development Bank (IsDB) and its trade finance offshoot are set to commence the second stage of a US$2.3bn coronavirus support package to boost exports in 57 member countries. After disbursing some US$250mn in health-related assistance last year during the first step of its coronavirus support strategy, the bank says it has signed an agreement with the Islamic Trade Finance Corporation (ITFC) to begin a second stage, focused on trade. The latest phase, which the bank dubs the “restore track”, will focus on measures over the medium term to finance trade and SMEs, protect “strategic” value chains and keep afloat necessary supplies for the healthcare sector and essential commodities. The pandemic triggered a sharp contraction in global trade during 2020, according to the World Trade Organization (WTO), as containment measures throttled consumption. Although the decline in volumes was less severe than expected, the pace of recovery during 2021 is “increasingly uncertain”- according to the WTO’s latest trade barometer. The ITFC approved financing of US$60mn during 2020 to “support procurement of essential goods”, ITFC chief executive Hani Salem Sonbol says. “Today, this agreement marks the confidence that IsDB has for ITFC to continue with its mandate to help member countries overcome and recover from the impact of the pandemic on their economies by providing trade finance solutions to private sector entities, financial institutions and… continue reading
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Source: CTRM Center