RIYADH: The Islamic Development Bank will work closer with the International Monetary Fund on developing financial stability in its member countries, it has been announced.
According to the IsDB chairman Mohammed Sulaiman Al-Jasser, the institution is set to expand the scope of its participation in the IMF’s Financial Sector Assessment Program.
During his meeting in Riyadh with officials from the global agency, the former Saudi minister explained that this development is based on the bank’s experience with the programs in Djibouti and Pakistan, the Saudi Press Agency reported.
Established in 1999, the FSAP was primarily launched to evaluate the stability and soundness of a country’s financial sector and assess how the segment can contribute to growth and development.
This move aligns with IsDB’s vision to be the leader in fostering socio-economic development in member countries and Muslim communities in conformity with Shariah practices.
During the meeting, Al-Jasser explained that the institution is committed to strengthening long-term cooperation with the IMF and boosting joint work in Islamic finance, climate, and green transition.
On behalf of the IMF, Managing Director Kristalina Georgieva expressed her interest in deepening the partnership with IsDB beyond Islamic finance, specifically in advancing climate action initiatives.
She noted that this comes in light of the support of the Resilience and Sustainability Trust, which is a $50 billion fund established by the IMF in 2022 to assist low-income and middle-income countries to withstand balance of payments shocks as well as ensure sustainable recovery.
Meanwhile, Al-Jasser met with the European Director at Bloomberg L.P. Constantin Cotzias.
The two sides reviewed potential collaboration opportunities, including growing the capital market, mobilizing local resources, and enhancing financial culture in developing and emerging economies.
During the meeting, Al-Jasser stressed the IsDB’s keenness to promote sustainable and vital infrastructure development in its 57 member states.
He also highlighted the bank’s programs aimed at effective capacity growth and humanitarian assistance through knowledge exchange initiatives and targeted technical assistance.
In September, the financial institution allocated $800 million to finance vital projects in member-state countries.
During the board meeting held in Jeddah, Al-Jasser explained that the approved projects would cater to various sectors, including energy, education, health and transportation, reported the Saudi Press Agency.
