MOU agreement between Islamic Development Bank Group and Standard Chartered Bank
IsDB President Dr. Bandar Hajjar and M. Sunil Kaushal, CEO for Africa and Middle East, Standard Chartered Bank (SCB), signed a Memorandum of Agreement to participate in IsDB’s Restore Track Program aimed to supporting IsDB’s member countries’ private sector through stimulus packages to the economic sectors most impacted by the Covid19 pandemic.
This agreement leverages on IsDB’s $2bn “Covid Guarantee Facility” to establish an operational cooperation framework for IsDB and SCB to facilitate financing arrangements to IsDB’s Member Countries.
The Covid pandemic has disrupted international financial channels and put pressure on hard currency inflows to emerging markets. This pressure led to considerable limitations of the private sector’s access to financial liquidity. Combined with the loss of income due to reduced demand, the health crisis poses unprecedented challenges to the private sector and especially SMEs.
Through its cooperation with Standard Chartered Bank, IsDB aims to help alleviate some of these pressures by providing blended lines of finance to local banks at competitive prices.
“I am glad to see our, already strong, relationship with Standard Chartered Bank further strengthened with this unique and innovative partnership” stated H.E IsDB’s president, Dr. Bandar Al Hajjar. He also expressed his firm conviction that SCB’s funding expertise added to IsDBG de-risking guarantees will make a lasting impact for IsDB’s members countries.
M. Sunil Kaushal expressed his thanks to IsDB for the developing partnership between the two institutions noting that IsDB is the first Bank to sign such agreement with SCB. He also expressed his strong commitment to support IsDB member countries to fight Covid-19.
Both agree that this “out of the box” partnerships between MDBs and the private sector are now necessary to overcome the challenges of our times.