Maldives Secures New US$1.5 Billion Trade Finance Framework with ITFC

The Ministry of Finance and Public Enterprises of the Maldives has announced the signing of a new five-year Framework Agreement with the International Islamic Trade Finance Corporation (ITFC).

The ministry states that the agreement was signed with the aim to mobilise up to USD 1.5 billion to support public- and private-sector trade operations across the country.

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According to a public statement issued by the ministry on X, the agreement spans the period from 2026 to 2031. Minister of Finance and Public Enterprises Hassan Zareer, serving as the Islamic Development Bank Governor for the Maldives, signed the framework alongside ITFC Chief Executive Officer Eng. Adeeb Yousuf Al-Aama during an official visit by the delegation to Malé.

Expanding Financial Support and Sector Reach

Under the terms detailed in the ministry’s statement, the framework allocates capital for the import and export of essential and strategic commodities. The arrangement extends trade financing mechanisms to state-owned entities as well as eligible private-sector enterprises.

Furthermore, the framework makes provision for dedicated financing lines through domestic financial institutions. The ministry reports that these channels aim to expand access to credit for small and medium-sized enterprises (SMEs) operating within the local economy.

In addition to direct capital deployment, the ministry indicates that both entities plan to explore trade-related technical assistance and advisory programmes. These initiatives intend to strengthen trade capacity and broaden access to international markets in alignment with national economic goals.

Multi-Year Partnership Dynamics

Reflecting on the ongoing collaboration, Minister Zareer highlighted that the partnership with the ITFC has expanded from initial support for national energy requirements into broader assistance for basic food imports, medical supplies, fisheries, and SMEs. He specifically cited the rollover trade finance facility provided to State Trading Organization PLC (STO) since 2017, noting that it supplies liquidity support to ensure the uninterrupted bulk procurement of vital goods.

In statements referenced by the ministry, ITFC CEO Eng. Adeeb Al-Aama expressed that the new framework builds upon multi-year institutional ties and intends to deepen direct engagement with Maldivian banks and private sector businesses.

The agreement succeeds a previous five-year framework (2019–2024), during which the ITFC approved USD 1.5 billion and disbursed USD 1.7 billion in total financing. Since beginning its operations in the Maldives in 2008, the corporation has approved more than USD 3.3 billion in cumulative trade support for petroleum, food, medical supplies, and construction materials.

During the official visit, the ITFC delegation conducted high-level discussions with President Muizzu and Maldives Monetary Authority (MMA) Governor Ahmed Munawar. Delegates also reviewed operational logistics linked to ITFC-financed commodities during visits to STO’s staple-food warehouse facilities in Malé and the Funadhoo Oil Terminal.