IDB provides $1.6b loan facilities to member countries, Indonesia gets $824m
JAKARTA (TheInsiderStories) – The Islamic Development Bank (IDB) has awarded US$1.6 billion loans to 14 member countries, out of which $824 million will go to Indonesia. The loan facility agreements were signed during the 41st IDB Annual Meeting of the Board of Governors, which ended on Thursday, May 19, 2016.
Earlier on Tuesday, Indonesia and IsDB have signed $5.2 billion loan facility agreement under the framework of Member Country Partnership Strategy (MCPS) for period of 2016-2020.
President of IDB Ahmad Mohamed Ali expressed his appreciation to the Government of Indonesia for the hospitality and the successes achieved during the meeting in Jakarta. Ahmad Ali also conveyed his gratitude to all members of the Board of Governors, who have discussed and approved various resolutions for the benefit of member countries.
He said that future programs of the IDB will focus on youth and infrastructure development which are part of the 10 Years Strategic Framework of IDB. He added that IDB is also committed to strengthening Islamic finance in order ensure financial inclusion and poverty alleviation.
During the Annual Meeting in Jakarta, IDB welcomed the Cooperative Republic of Guyana as a new member of the bank. With the membership of Guyana, all members of the Organization of Islamic Cooperation, are now members of IDB.
Several side events took place during the 41st Annual Meeting, focusing on various topics, including development of infrastructure, energy, human development, environment, Islamic finance, Sukuk (Islamic bonds) and the SDGs.
The side event on Islamic finance highlighted the characteristic of Islamic Finance: transparency, partnership, justice, and orientation on real sector. These characteristic are believed to be effective in supporting economic development and closing the social and economic gap.
The Government of Indonesia reiterated it is commitment to work with IDB in its vision to transform the economy of Indonesia. Already, Indonesia has adapted and integrated SDGs into the national and local development agenda. The national middle term development plan 2015-2019 reflects the nine priority program of President Joko Widodo and Vice President Jusuf Kalla administration program known as Nawacita. The Indonesia Government is working on closing the social economy by reducing the Gini coefficient to 0.36 by the end of 2019 from 0.41 in 2014. The Indonesia Government is also committed to reduce greenhouse gas emission by 29 percent in 2030 through the improvement of protected forest and the enhancement of renewable energy sector.
Ministry of Finance of the Republic of Indonesia has further initiated the Conference of Shariah Finance for the first time. Today, Sukuk has grown rapidly in popularity both in Islamic and non-Islamic countries. Apart from the regular Sukuk, the green Sukuk has also been discussed, as it is believed to support impact investment.
The Annual Meeting was attended by 4,375 with 1021 international delegates. Apart from seminars, the Annual Meeting also held Innovation exhibition, which highlighted various innovative projects from IsDB member countries. There are 158 exhibition participants, 62 which come from Indonesia.
Following is the list of loan facilities :
- Indonesia $824 million for infrastructure, education and power plant projects
- Camerun $157 million for road and transportation projects
- Chad $152 million for road and transportation projects
- Gabon $120 million for basic health
- Iran $$104 million for irrigation project
- Burkina Faso $$99.5 million for road and agriculture projects
- Nigeria $84 million for power plant project
- Suriname $31 million for education
- Marocco $7.5 million for financial literacy and education
- Bangladesh $20 million for housing and poverty
- Kirgistan $11.5 million for toll road projects
- Palestine $6 million for education and development of Al-Quds areas
- Pakistan $600,000 for feasibility study on water and solar-based power plant project
- Gambia $280 million for village health program and cooperation with Turkey
IDB is a multilateral development institution, established in July 1975 with Headquarters in Jeddah, Saudi Arabia. The IDB provides Shari’ah-compatible funding and technical assistance to its (56) member countries and in line with its overall objective of fostering economic development and social progress, it finances projects and programs in both public and private sectors in member countries by investing in economic and social infrastructure, providing technical assistance, and promoting foreign trade. (*)
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Source: The Insiderstories
IDB provides .6b loan facilities to member countries, Indonesia gets 4m