In order to support its member countries in this time of need, the Islamic Development Bank (IsDB) Group has set-up a special ‘Strategic Preparedness and Response Facility’ worth $730 million to mitigate the negative health and socio-economic impact of the COVID -19 pandemic.
The bank stated that the facility “will extend financing to both the public and private sector in minimising the spread and impact of the pandemic in IsDB member countries and to build their resilience.
“Financing will be extended in the form of grants, concessional resources, trade finance, private sector lending and political and risk insurance coverage. The IsDB Group will deploy all the available financing instruments to channel the funds in a fast track manner to support its member countries”, the bank added.
It said the IsDB Group entities will support the private sector in responding to the crisis and to minimise its impact on SMEs to sustain economic development.
Additionally, the statement indicated that the Islamic Cooperation for Development (ICD) shall provide $250 million of emergency funding mainly in the form of medium to long-term financing instruments to help existing and new clients in the financial, agri-food, energy and other affected sectors.
ICD will also be aiding the private healthcare industry of affected member-countries to meet surging need for services, equipment and medicines and also work closely with 100+ local and regional financial institutions in its network to provide necessary support so they can continue to finance SMEs in affected sectors within the markets they operate.
It clarified: “We will work hand in hand with all partners for a united action to overcome this pandemic and we strongly believe that effective coordination and interaction among member countries is extremely important to effectively address the current situation” it added.