IDB committed to giving more emphasis to private sector

IDB committed to giving more emphasis to private sector

JAKARTA (JP): The two-day annual meeting of the Islamic
Development Bank (IDB) ended here yesterday, with a stronger
commitment to supporting the private sector and less developed
member countries.

The meeting also approved the applications of Mozambique and
Kazakhstan to become the 49th and 50th members of the Jeddah-
based bank.

Minister of Finance Mar'ie Muhammad said the meeting was very
successful in laying a stronger foundation for the future of the
bank, which was established in 1975 to help the economies of
Moslem countries.

In addition to the approval of some "routine" matters, such as
financial reports and working programs, senior officials of the
bank's member countries also agreed to further promote both
bilateral and multilateral cooperation, said Mar'ie, who chaired
the meeting.

Fuad Abdullah al-Omar, the bank's former acting president,
said the bank would give a stronger emphasis on the development
of the private sector in the future.

"Like other financial institutions, IDB will also pay a
greater attention to the development of the private sector," he
said.

IDB, with a paid-up capital of US$8.4 billion, provides most
of its financing facilities to support government projects under
an interest-free mechanism.

Omar said the bank has introduced a number of schemes in
helping the private sector, such as export financing and leasing
facilities.

"Those facilities will be expanded to promote the role of the
private sector in the bank's member countries," he said.

Omar also said financing trade in member countries to promote
trade among them is part of the bank's mission, besides its
financing facilities for government projects.

Besides those financial instruments, the bank also operates at
least 20 commercial banks to support the financing of private
sector companies.

"The Portfolio investment fund worth $380 million has been
developed for the same purpose," Omar said.

Regarding the call for the need to imposing lenient terms on
loans for the least developed members, Omar said that the bank
has actually had such a facility for several years.

"A number of financing facilities to low-income members have
already carried a very low charge," he said. "But of course, we
have to expand its coverage."

The meeting, which was opened by President Soeharto on
Wednesday, elected Ahmad Mohammed Ali of Saudi Arabia as the
bank's new president for a five-year term, replacing Osama Jaafar
Faquih.

The appointment is the third for Ali.

Faquih, who was elected as the bank's president in 1993 for a
five-year term, had to quit his post following his appointment as
Saudi Arabia's minister of commerce.

The meeting also appointed Yansane Kerfalla, the chief of
Guinea's central bank, as chairman of the bank's board of
governors, replacing Mar'ie Muhammad of Indonesia.

A number of agreements were also signed during the meeting,
which was preceded by a two-day gathering of the bank's board of
executives.

The agreements included the bank's $52.22 million leasing
facilities for electricity, vocational training and health care
projects in Indonesia.

Those leasing facilities are part of around $106 million in
financial assistance signed during the meeting. Other recipients
included Algeria, Maldives, Benin, Burkina Faso, Guinea, Senegal,
Mali, Mauritania, Morocco and Gabon. (hen)