IsDB to Set-Up a USD 730 Million Special Fund to Cope with Coronavirus Impacts
A special fund valued at USD 730 million will be set up by the Islamic Development Bank (IsDB Group) to manage the negative impact on health and socioeconomic factors caused by the Coronavirus outbreak.
The Bank and Islamic Solidarity Fund for Development, plans to contribute USD 280 million for sovereign projects and programs. The remainder will comprise of USD 300 million from the International Islamic Trade Finance Corporation (ITFC), for trade finance, and USD 150 million from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), for insurance coverage.
The IsDB Group stated that member countries may face global supply chain disruptions, demand compression and macroeconomic instability, leading to poverty fallout and a significant dent in economic growth, if the situation is poorly managed.
The Fund plans to extend financing facilities to both public and private sectors.
Further, the Group indicated that they are also aiming to invest in research and development, and offer technical assistance for efforts to develop innovative solutions to combat the pandemic.