Saudi Arabia-based leading financial institution Islamic Development Bank’s (IDB) financial arm International Islamic Trade Finance Corporation (ITFC) has signed a $150 million worth framework agreement with the government of Turkmenistan to support the country.
The three-year deal would encourage bilateral cooperation to finance the import of essential commodities and will support Turkmenistan’s agricultural and textile sectors.
The ITFC said the agreement will also focus on providing access to finance to Turkmenistan’s private sector, particularly its small and medium-sized enterprises (SMEs). Further, the agreement is aimed to support Turkmenistan’s national economic goals and development plans, with a focus on trade promotion, trade capacity-building, and trade cooperation.
This framework agreement follows the approval of Turkmenistan’s membership application to join ITFC, according to the statement.
“ITFC remains firmly committed to supporting the socio-economic development of our member countries and this Framework Agreement is a step in that direction. Our support will span over several priority sectors of the Turkmenistan economy with particular focus on post-COVID-19 pandemic recovery, trade capacity building, and Lines of Financing for SMEs.”
Mr. Rahimberdi Jepbarov, chairman of the board at the State Bank for Foreign Economic Affairs of Turkmenistan said, “Development of trade and economic relations on the regional and global levels, as well as supporting private sector are among high priorities of the Government of Turkmenistan and we see 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. We are glad to be a member of ITFS as it offers us new opportunities in trade.”