The government of Maldives and the International Islamic Trade Finance Corporation (ITFC) have signed a five-year trade-financing agreement covering 2026–2031.
Under the USD 1.5 billion agreement, trade financing facilities will be made available through the government and local banks to eligible government-owned and private-sector companies.
The agreement was signed on behalf of ITFC by its Chief Executive Officer, Engineer Adeeb Yoosuf Al-Aama during an official visit to the Maldives. The Maldivian government was represented by Minister of Finance and Public Enterprises and Governor of Maldives to the Islamic Development Bank (IDB) Hassan Zareer.
Under the framework, imports of food and other essential goods will be funded as well as medical supplies. Funding will also be provided for the expansion of exports and trade including assistance to government-owned companies and eligible private companies through local banks. Technical assistance will also be provided to implement projects that help Maldivian products reach international markets, in line with the Maldives’ development goals.
Addressing the signing ceremony, Minister Zareer said ITFC has expanded its support to the Maldives over the years. While ITFC assistance originally focused mainly on energy, it has now expanded to trade and development, he noted. He added that the support also includes financing for food and medical imports, as well as support for fisheries and small and medium-sized enterprises (SMEs). He noted that the trade finance facility for the State Trading Organization (STO), provided to STO since 2017, is an important part of the relationship. The facility gives STO the funds needed to continuously purchase essential goods, and also helps ensure the sustainability of the state’s trade transactions, he added.
ITFC’s CEO said the agreement is the result of many years of close cooperation between ITFC and the Maldives. It will further strengthen the relationship between Maldivian banks and the private sector, he added.
The new financing framework builds on the existing partnership and trade-finance support provided by ITFC to the Maldives, and renews the 2019-2024 agreement. While the last agreement allocated USD 1.5 billion assistance to the Maldives, a total of USD 1.7 billion was utilised under the agreement. While the ITFC has been supporting the Maldives since 2008, USD 3.3 billion in total financing has been provided so far.