IDB provides loan facilities US$12.2 billion, Indonesia gets US$995 million

Photo by IDB

JAKARTA (TheInsiderStories) – The Islamic Development Bank (IDB) announced to providing loan facilities US$12.2 billion including to Indonesia and other countries, the president Bandar Hajjar disclosed on Monday at the sideline 42th IDB Annual Meeting in Jeddah, Saudi Gazette reported.

Based on IDB data, Turkey tops the list of countries receiving loans $1.7 billion followed by Indonesia $995.3 million, Pakistan $950.5 million, Egypt $942.2 and Turkmenistan $700 million for projects finance.

Region-wise, all the four regions in which the 75 member countries of the IDB are grouped, received a fairly equal distribution of approvals, with Sub-Saharan Africa and Europe and Central Asia regions each getting $3.1 billion. The Middle East and North Africa region received $3.05 billion, and Asia and Latin America region gained the remaining $2.8 billion. The total amount approved for all 255 operations in these different regions reached $12.2 billion.

Beside those countries, IDB is also committed to providing aid to countries affected by the instability in the region such as Yemen and also countries that have refugees such as Lebanon, Jordan, Somalia and also special assistant to Muslim communities in Myanmar through cooperation with neighboring countries. The president noted that they opt to expand the partnerships to close the gap that is needed for the development in member countries.

“The infrastructure sector alone needs $3.5 trillion, of which only $2.5 trillion is available. The amount is huge and IDB cannot do it on its own.” He added that financing should not be the only source that is relied on in development. It should be associated with other components such as training and consultation.

Asked about the IDB interest to invest in Aramco, he said “like any other project investment in Aramco, if considered, will be examined through comprehensive studying and based on the IDB criteria.” In the same context, he highlighted the strong relation that links the IDB with the Kingdom, particularly in the infrastructure sector.

IDB also announced issuing a published book addressing unified fatwas regarding the different modes of financing based on diversified fiqh school views. The book includes 75 decisions regarding sukuk, hire, sale, zakah and waqf. The book is a contribution that would help financing establishments and researchers.

Furthermore, the IDB announced its global report on Islamic finance. The report concluded that there is need to reduce the income inequality since 1 percent of the world population owns 50 percent of the world assets. The Islamic finance model can provide solutions to bridge the gap by using zakah, sukuk, waqf, murabaha, among other Islamic options that might be adopted by both Muslim and conventional investors. This year, the annual meeting enjoyed the presence of 2,000 individuals, with up to 1,300 of them are coming from outside the Kingdom. Next year annual meeting is scheduled to take place in Tunisia.