Islamic Finance

Islamic Development Bank announces $2 bln COVID-19 response package

The Islamic Development Bank on Monday (Mar 23) announced a $2 billion COVID-19 response package for member states.

The 3 Rs package, standing for Respond, Restore, and Restart, starts with pandemic preparedness, in cooperation with G20 Global Initiative, follows with medium-term action through financing for trade and SMEs, and includes long-term action to build resilience.

“The number of IsDB member countries affected by COVID-19 has reached 45 out of 57, with total confirmed cases reaching 27,579 people, 1,691 of whom have died as of 22 March 2020. We have already received requests for financial support from more than 20 member countries,“ IDB president Dr. Bandar Hajjar said in a statement.

The Islamic Development Bank Group will launch a joint global platform in May to track delivery among all countries and to mobilise resources.

In response to #COVID19, IsDB President Dr. Bandar Hajjar has announced a new package: ‘The Three Rs’ – Respond; Restore; Restart.
The comprehensive, integrated response package is worth up to $2 Billion, & will support Member Countries combat the pandemic

— IsDB Group (@isdb_group) March 24, 2020

“I believe this is an opportunity to shift towards actively shaping and creating markets that deliver sustainable and inclusive growth, rather than continue limiting our role at the government and international community level to reacting to market failures,” said the statement.

In particular, IDB says the "Restart" part of the package "aims to deliver long-term action to build resilient economies on solid foundations and catalyze private investment by supporting economic recovery and countercyclical spending, with a targeted $10 billion that aims to unlock $1 trillion worth of investments."

The Shariah-compliant multilateral on Mar 16 said it had set up a $730 million facility to help member countries mitigate the socio-economic impact of the pandemic. The ‘Strategic Preparedness and Response Facility’, both public and private sectors, includes $280 million from the Bank and the Islamic Solidarity Fund for Development for sovereign projects and programmes, $300 million comes from the International Trade Finance Corporation for trade finance, and $150 million from ICIEC for insurance coverage.

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