The International Islamic Trade Finance Cooperation (ITFC) has signed two financing agreements worth a total of US$65mn.
A US$45mn agreement has been signed with Turkey’s Aktif Bank to boost support for Turkish exporters, as well as a US$20mn revolving agreement with the government of the Comoros to secure supplies of petroleum products for the country.
The ITFC previously signed framework agreements with Aktif Bank in 2009 and 2011. According to CEO of the ITFC, Waleed Al-Wohaib, this latest agreement further emphasises the co-operation’s mandate to promote intra-regional trade amongst member-countries of the Organisation of Islamic Conference (OIC), which includes Turkey.
“Exports is one of the main drivers for the Turkish economy,” says Al-Wohaib. “This financing will contribute to working capital for export-oriented industries.”
In the Comoros, the state-owned petroleum supply company Comor Hudrocarbures will act as executing agency on the ITFC’s revolving facility.
Commenting on the need for such an agreement at the signing in Jeddah, deputy CEO of the ITFC, Hani Sonbol, said: “Comoros faces energy constraints; with this agreement, oil product imports will be facilitated to the country, to help meet its needs.”
Governor of the Islamic Development Bank and vice-president of the Comoros, Mohamed Ali Soilihi, added: “Securing the supply of petroleum products is essential, and we expect that the agreement will open up new opportunities for our co-operation in trade financing.”