IDB committed to giving more emphasis to private sector<\/p>\n
JAKARTA (JP): The two-day annual meeting of the Islamic
\nDevelopment Bank (IDB) ended here yesterday, with a stronger
\ncommitment to supporting the private sector and less developed
\nmember countries.<\/p>\n
The meeting also approved the applications of Mozambique and
\nKazakhstan to become the 49th and 50th members of the Jeddah-
\nbased bank.<\/p>\n
Minister of Finance Mar'ie Muhammad said the meeting was very
\nsuccessful in laying a stronger foundation for the future of the
\nbank, which was established in 1975 to help the economies of
\nMoslem countries.<\/p>\n
In addition to the approval of some \"routine\" matters, such as
\nfinancial reports and working programs, senior officials of the
\nbank's member countries also agreed to further promote both
\nbilateral and multilateral cooperation, said Mar'ie, who chaired
\nthe meeting.<\/p>\n
Fuad Abdullah al-Omar, the bank's former acting president,
\nsaid the bank would give a stronger emphasis on the development
\nof the private sector in the future.<\/p>\n
\"Like other financial institutions, IDB will also pay a
\ngreater attention to the development of the private sector,\" he
\nsaid.<\/p>\n
IDB, with a paid-up capital of US$8.4 billion, provides most
\nof its financing facilities to support government projects under
\nan interest-free mechanism.<\/p>\n
Omar said the bank has introduced a number of schemes in
\nhelping the private sector, such as export financing and leasing
\nfacilities.<\/p>\n
\"Those facilities will be expanded to promote the role of the
\nprivate sector in the bank's member countries,\" he said.<\/p>\n
Omar also said financing trade in member countries to promote
\ntrade among them is part of the bank's mission, besides its
\nfinancing facilities for government projects.<\/p>\n
Besides those financial instruments, the bank also operates at
\nleast 20 commercial banks to support the financing of private
\nsector companies.<\/p>\n
\"The Portfolio investment fund worth $380 million has been
\ndeveloped for the same purpose,\" Omar said.<\/p>\n
Regarding the call for the need to imposing lenient terms on
\nloans for the least developed members, Omar said that the bank
\nhas actually had such a facility for several years.<\/p>\n
\"A number of financing facilities to low-income members have
\nalready carried a very low charge,\" he said. \"But of course, we
\nhave to expand its coverage.\"<\/p>\n
The meeting, which was opened by President Soeharto on
\nWednesday, elected Ahmad Mohammed Ali of Saudi Arabia as the
\nbank's new president for a five-year term, replacing Osama Jaafar
\nFaquih.<\/p>\n
The appointment is the third for Ali.<\/p>\n
Faquih, who was elected as the bank's president in 1993 for a
\nfive-year term, had to quit his post following his appointment as
\nSaudi Arabia's minister of commerce.<\/p>\n
The meeting also appointed Yansane Kerfalla, the chief of
\nGuinea's central bank, as chairman of the bank's board of
\ngovernors, replacing Mar'ie Muhammad of Indonesia.<\/p>\n
A number of agreements were also signed during the meeting,
\nwhich was preceded by a two-day gathering of the bank's board of
\nexecutives.<\/p>\n
The agreements included the bank's $52.22 million leasing
\nfacilities for electricity, vocational training and health care
\nprojects in Indonesia.<\/p>\n
Those leasing facilities are part of around $106 million in
\nfinancial assistance signed during the meeting. Other recipients
\nincluded Algeria, Maldives, Benin, Burkina Faso, Guinea, Senegal,
\nMali, Mauritania, Morocco and Gabon. (hen)<\/p>",
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"sponsor": "Okusi Associates",
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