Islamic Development Bank Expands Collaboration with IMF to Enhance Financial Stability

326

Riyadh: The Islamic Development Bank (IsDB) has announced a deeper collaborative effort with the International Monetary Fund (IMF) to bolster financial stability in its member countries. IsDB’s Chairman, Mohammed Sulaiman Al-Jasser, shared the bank’s intention to broaden its engagement in the IMF’s Financial Sector Assessment Program (FSAP) during a meeting with IMF officials in Riyadh. This strategic move is based on IsDB’s successful experience with FSAP programs in Djibouti and Pakistan, as reported by the Saudi Press Agency.

Launched in 1999, the FSAP primarily serves to evaluate the stability and soundness of a country’s financial sector, examining how this segment can contribute to overall economic growth and development.

This development aligns with IsDB’s overarching vision to lead in fostering socio-economic development within its member countries and Muslim communities while adhering to Shariah practices.

At the meeting, Al-Jasser affirmed IsDB’s commitment to strengthening its long-term partnership with the IMF and expanding joint efforts in areas such as Islamic finance, climate action, and the green transition.

IMF Managing Director Kristalina Georgieva expressed the IMF’s interest in deepening its partnership with IsDB, extending beyond Islamic finance, with a particular focus on advancing climate action initiatives. She highlighted this as part of the support provided by the Resilience and Sustainability Trust, a $50 billion fund established by the IMF in 2022 to aid low-income and middle-income countries in withstanding balance of payments shocks and achieving sustainable recovery.

Concurrently, Al-Jasser held discussions with Constantin Cotzias, the European Director at Bloomberg L.P. During their exchange, potential areas of collaboration were explored, including the expansion of capital markets, mobilization of local resources, and the enrichment of financial literacy in developing and emerging economies.

Al-Jasser underscored IsDB’s commitment to promoting sustainable and critical infrastructure development across its 57 member states. He emphasized the bank’s programs aimed at enhancing capacity growth and providing humanitarian assistance through knowledge exchange initiatives and targeted technical support.

In September, the financial institution allocated $800 million to finance essential projects in its member-state countries. During the board meeting held in Jeddah, Al-Jasser stated that the approved projects would cater to various sectors, including energy, education, health, and transportation, according to the Saudi Press Agency.