The Islamic Trade Finance Corporation (ITFC) of the Islamic Development Bank (IsDB) on Wednesday signed a $150 million framework agreement with the Government of Turkmenistan.
The three-year agreement was signed virtually by Hani Salem Sonbol, Chief Executive Officer of ITFC, and Rahymberdi Jepbarov, Chairman of the Board of the State Bank for Foreign Economic Affairs of Turkmenistan and and IsDB Governor for Turkmenistan, the ITFC said in its press release.
This follows the approval of Turkmenistan’s membership application to join ITFC at the last ITFC General Assembly in September 2021 held during the IsDB Group annual meeting.
The ITFC said the agreement covers bilateral cooperation in the areas of trade financing for the import of essential commodities and supporting agriculture and textile sectors of Turkmenistan.
It also focuses on providing access to finance to Turkmenistan’s private sector, particularly its small and medium-sized enterprises (SMEs).
During the signing event, Rahymberdi Jepbarov said “we see a membership in ITFC as a good platform to enhance inter- and intra-regional trade activity, and to enable our private sector to grow at a faster pace”.
ITFC is an autonomous entity within the Islamic Development Bank group. Operating since 2008, the headquarters of the ITFC is located in Jeddah, Saudi Arabia. It was created to promote and develop trade in order to improve the economic conditions and incomes of the population of the countries of the Islamic world.