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Bank President: IDB’s capital growth paved way for banking operations sustained growth

Business Materials 23 June 2010 17:43
Islamic Development Bank (IDB) has demonstrated stability during the global financial crisis and has kept its credit rating at AAA level, IDB President Ahmed Mohamed Ali said at the 35-th Annual Meeting of the IDB Board of Governors in Baku today.

Azerbaijan, Baku, June 23 / Trend, A. Badalova /

Islamic Development Bank (IDB) has demonstrated stability during the global financial crisis and has kept its credit rating at AAA level, IDB President Ahmed Mohamed Ali said at the 35-th Annual Meeting of the IDB Board of Governors in Baku today.

He said the Bank's decision on significant growth in the authorized capital of the IDB, as well as the beginning of the subscription for shares allowed the Bank to increase its funds through the completion of the second increase in the total capital.

"This decision paved the way for sustainable growth in the amount of banking operations and significantly improve quality and execution," Muhammad Ali said. He said this allowed the bank to preserve an excellent rating and gradually improve the mobilization of market resources on acceptable terms.

Nevertheless, according to the IDB President, addressing important problems requires the bank to achieve higher amounts of resources and effective planning for 15-20 years.
Muhammad Ali said the Bank pays particular attention to infrastructure development. He said the IDB almost doubled its project funding in the spheres such as transport, electricity, water and sewer system, as well as in the social sphere.

The IDB group's financial activity rose to unprecedented level, reaching $7.25 billion in 2009, which is 25 percent more compared to the previous year.

The 35th Annual Meeting of IDB Board of Governors held June 23-24 with the participation of ministers of finance, economy and planning of the Bank's 56 member countries.

Islamic Development Bank was established in 1975. Since its establishment, the Bank's authorized capital has increased in fifteen times - from two billion Islamic dinars (Islamic dinar is a unit of the IDB account, and is equivalent to one SDR of the International Monetary Fund) to 30 billion Islamic dinars.

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