Islamic Development Bank finances Iranian companies to import raw material

Oil&Gas Materials 10 January 2011 11:54 (UTC +04:00)

Azerbaijan, Baku, Jan. 10 / Trend, A.Yusifzade /

Deputy Minister of Economic Affairs and Finance Behrouz Alishiri said the Islamic Development Bank has agreed to pay Iranian firms $110 million in financial facilities, according to the Organization for Investment, Economic and Technical Assistance of Iran.

The International Islamic Trade Finance Corporation (ITFC) as an autonomous entity within the IDB has allocated $50 million to an Iranian company to import raw material.

According to Alishiri, ITFC has agreed to allocate $60 million in loan to two other Iranian firms to import raw material.

Alishiri stressed the willingness of local companies to enjoy the IDB's trade facilities through ITFC. "The local companies may get the terms and conditions for using the IDB facilities at the website of the Organization for Investment, Economic and Technical Assistance of Iran," he added.

So far, the IDB has approved roughly $4.750 billion short-term and long-term credits to implement development and manufacturing projects of the country, and import raw materials and spare parts needed by various industries.

ITFC has been established by IDB to facilitate international trade among Islamic states by financing and expanding business.

ITFC was formed to consolidate the trade finance business that was formerly undertaken by various departments of the IDB.

As a leader in Shari'ah-compliant trade finance, the bank deploys its experience and funds to businesses and governments in OIC member-countries.

Iran is the bank's second biggest shareholder.