(Ecofin Agency) - The Islamic Development Bank announced a “Murabaha” financing of $8.8 million in favor of the Islamic Bank of Senegal (BIS) to support 1,000 jobs in the private sector amid the coronavirus pandemic. The fund was approved by the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IDB) Group.
According to Hani Salem Sonbol (pictured), ITFC's Managing Director, “this Murabahah is a necessary intervention in these extraordinarily difficult global conditions and will support the efforts of BIS and the government to ensure the availability of much-needed commodities for the Senegalese population.”
Last March, the Senegalese government set up a $104 million fund to support growth and protect jobs, particularly in the areas of tourism, air transport, formal and informal trade supply chains, and industry.
Let’s note that a “Murabaha” financing is a form of interest-free borrowing which consists of a financial institution buying the products its clients need and selling them back to them with a fixed pre-determined margin.