Iran’s Proposal to IsDB for Financing Projects with Preferential Rate Approved
TEHRAN (Tasnim) – Iran’s proposal for the establishment of a new financing mechanism using a preferential rate for countries was approved by member states of the Islamic Development Bank (IsDB), the Iranian minister of economic affairs and finance announced.
Ehsan Khandouzi made the remarks on the sidelines of the 50th annual meeting of the IsDB group, which is underway in Saudi Arabia’s capital Riyadh.
The agenda for the next year's projects which will be financed by the IsDB in Islamic countries was approved by the members, and the proposal of Iran to create a new preferential financing window for members has been endorsed, the economy minister stated.
He went on to say that the financial burden of this preferential financing arrangement will be shouldered by the shareholders with sound macroeconomic performance, allowing the IsDB to utilize preferential financing methods as an incentive for the first time.
He stressed that the IsDB group must reformulate effective reform policies and strengthen the principles of governance and ensure economic, financial, and environmental sustainability to overcome challenges.
The Iranian economy minister proposed that the IsDB should seriously consider investing in research and development of Islamic fintech (financial technology) solutions to improve access to financial services and facilitate financial transactions among Islamic countries.
Iran is ready to share its knowledge and experience to cooperate with the bank and its member countries in that regard, he added.
