Islamic Development Bank

The Islamic Development Bank (IDB) was founded in 1975 with the initial capital of 755 million Islamic dinar, in order to promote the economic development and social progress of Muslim countries and non-member Muslim societies around the world.

 

Islamic Development Bank Project Facility to Public Sector:

The project facilities are mainly provided to meet the foreign exchange needs of the priority production, development and infrastructure projects of the public sector, determined on the basis of our country's three-year partnership program with the Islamic Development Bank. The Islamic Development Bank, with dispatching delegations for the designation of state priority projects, while organizing meetings with various ministries and governmental institutions, sets out a three or four year document of cooperation with our country, which will serve as a benchmark for financing the priority projects of the country over time. The program. The roof of the Islamic Development Bank's facility for each project is a maximum of $ 100 million and the profit and fees are floating or fixed. According to the Bank's rules and regulations, all project implementation stages, including procurement of tender documents for the selection of the contractor, PMC Consultant, Supervisor, Auditor of the design and holding of the relevant tenders, must be carried out under the supervision of the bank and the contractor and its consultants have not previously been selected. The financial procedures used to fund projects mainly include installment sales, lease payments, equity (capital goods production, or service delivery, with a specific feature, a specified price at a particular time). Direct payments to the contractor are made on the basis of project progress reports and contractor submissions by the project management consultant. In addition, the financing of the project by the Islamic Development Bank is subject to the ownership of the land needed before the start of the project implementation process. Providing documentation on the acquisition of required land, providing additional internal funding, as well as obtaining and providing permits for implementation of the plan from other relevant institutions (such as municipalities, environmental organizations, etc.).
Therefore, if the priority projects are introduced by the highest authority of the organization or ministry to the Management and Planning Organization and the Ministry of Economic Affairs and Finance (the Investment and Economic and Technical Assistance Organization), then the feasibility report of the project, including technical, economic and financial justifications in English ( According to Form No. 1, if the plan is approved in the three-year program of future cooperation, subsequently obtaining and providing the necessary legal permissions (including obtaining and issuing the Economic Council's approval, obtaining the confirmation of the repayment of the installments, the requested credit in the budget of the Armed Forces Important, closed currency certificates are essential, including the basic requirements for the use of foreign financial resources. The process of obtaining long-term credit and required documents are as follows:

 

 

Internal and external processes and credit facility stages of the Islamic Development Bank's (long-term) project for the public sector

 

1 The official introduction of the project by the minister or the highest executive officer of the relevant office to the presidency.
2 The formal introduction of the project by the Management and Planning Organization to the Ministry of Economic Affairs and Finance (Investment Organization) as a priority project for the use of the Islamic Development Bank facility.
3 Identification of priority projects approved by Management and Planning Organization and Islamic Development Bank and their inclusion in the Bank's three-year or four-year partnership program with our country.
4 Preparation of feasibility report of the project, including full technical, economic, financial, and environmental justifications of the project, along with detailed engineering design in accordance with the format approved by the Islamic Development Bank, in English by the applicant, and submitted to the organization for examination and submission to the Development Bank Islamic (Feasibility form)
5 Dispatch of the Islamic Development Bank Preparation Board to collect more information regarding the feasibility report of the project.
6 Delegation of the Islamic Development Bank Evaluation Board and Signing Memorandum of Understanding and Determining the Amount of Credit Allocated to the Executive Office
7 Obtaining the approval of the Economic Council
8 Obtaining a blocked currency certificate from the central bank
9 Debit Debt Settlement Applicant to Central Bank
10 Agreeing Article 215 of the 5th Development Plan Law
11 Reflection of the general terms and conditions to the beneficiary and the central bank for confirmation and reflection to the Islamic Development Bank.
12 Approve the project by the Islamic Development Bank and declare the terms and conditions of the facility approved by this organization and subsequently notify the beneficiary.
13 Obtaining approval of the management and planning organization for predicting the equivalence of the repayment of installments in budget bills. If the project requires foreign purchases (import of goods and services), instead of approval, obtaining permission of Article 62 of the general calculating law and concluding a contract under Article 62 of the calculation law General of the country is the beneficiary of the facility, the relevant ministry and the Central Bank of the Islamic Republic of Iran Credits Office.
14 Submitting a draft regulatory agreement by the Islamic Development Bank to the beneficiary and central bank for their views and sending it to the Islamic Development Bank.
15 Signing the agreement is signed by the beneficiary and Islamic Development Bank.
16 The issuance of the theory of rights by the legal advisor of the investment organization.
17 State guarantee issuance by the Ministry of Economic Affairs and Finance.
18 Issuing legal theory by legal advisor to stakeholder organization.19th Entry into force of a financing and bidding agreement for the purchase of equipment required in accordance with the Bank's regulations and domestic laws.

Islamic Commercial Finance International Business Facility (ITFC)

The International Islamic Finance International Finance Corporation (ITFC), affiliated with the Islamic Development Bank in 2008, has been founded and believes in the important role of the private sector in developing the economy to provide short-term commercial finance for the private sector through attractive and flexible ways to enable the volume Increase the trade of the member countries of the Islamic Development Bank and affect the economic development of the member states. In this regard, the company has put forward two short-term business finance practices that are addressed to each of them in the following terms:

ITFC financing practices:

A) Facility granting directly:
In order to finance the import needs of companies that are mainly productive, the maximum amount of facility required is EUR 25 million and the minimum facility required is EUR 5 million.
B) Granting credit lines to member banks and financial institutions:
To meet the needs of small and medium-sized enterprises for import (if the amount of the facility is less than 3 million euros). This is done in two ways: granting direct facilities and granting credit lines to banks and financial institutions, which are described in detail below:

 

Request for Direct Facility ITFC, Direct Facility:

Applicants for the ITFC direct facility should be provided to the national authority of the country and be reflected through the ITFC communication channel. The national ITFC reference in our country is the Ministry of Economic Affairs and Finance and the Communications Office of the Office of Lending, Assemblies and International Organizations of the Organization for Investment and Technology and Economic Assistance of Iran.

 

Terms and conditions for using direct facilities:

The possibility of using the credit facility of the International Islamic Finance Corporation (ITCF) for financing import of raw materials, raw materials, or disintegrated components is provided for institutions whose financial statements show a positive outlook on profitability and financial strength. The libor facility's interest rate is plus 4.75%, and the management and executive costs of providing the facility are up to $ 40,000.
In order to use this facility, providing a bank guarantee to guarantee the repayment of facilities is the same as the one required for the facility, and the sponsor bank can be one of the public or private banks in the country. The applicant company must receive prior approval from the guarantor's bank to issue a guarantee and submit it to the lending, international, and international lenders office. However, if the above conditions are met, the applicant company should, in consideration of the following criteria, submit the required documents for review and the necessary measures to be sent to the company to reflect this company:1 Audited financial statements of the company for the last three years, accompanied by an audit report and explanatory notes in English;
2 Specifications for imported goods in English;
3 Introduction of the guarantor bank for issuing a guarantee equivalent to the application form of the facility and receipt and submission of a letter of acceptance by the agency (form for declaring the intention to issue a guarantee) from the guarantor bank for the issuance of the guarantee and to submit to the lending office international assemblies and institutions;
4 Written review and acceptance of the general terms of use of ITFC credits by applicant companies and compliance with all its terms and conditions;
5 The use of credit approved must take place within a specified time period (maximum two months in order to accept the approved terms, signing the authorized person's signature, issuing the guarantee, opening the first documentary credit and, finally, full use of the approved credit (at most six months);
6 Any request for an extension of the deadline for the use of credit must be made by giving full reasons and documentation, and by way of exception, through the Loan Office;
7 Any prolonged termination of the credit, the deadline referred to in clause 5 above, and ultimately the revocation of the credit, shall not result in the future requests of the company to be prioritized by the designated office in order to reflect ITFC.

 

Granting Credit Line to Banks and Financial Institutions:

The Islamic International Finance Corporation (ITCF) provides commercial banks with commercial financing in order to finance the import needs of small and medium-sized enterprises and small and medium-sized enterprises, based on an official request from the Office of Lending, Assemblies and International Investment Organizations.
At present, ITFC has been granting commercial credit line to five Export Development Bank of Iran, National, Industry and Mine, Parsian and Entrepreneur. It should be noted that the banks of our country can request the approval of a short-term credit line by submitting the annual report for the last three years (in English) and requesting a credit line to the Office of International Monetary, Investment and Technical Assistance Organization of Iran, Ministry of Economic Affairs and Finance Commercial ITFC, and subsequently, after reviewing the documents provided by that office and benefiting from ITFC's acceptance of the credit line, will benefit from these facilities.

Request for the use of short-term ITFC concessional credit line through banks:

Applicants for using ITFC's short-term business facilities with financing needs of less than € 3 million to import repairable goods can refer directly to the International Banking Authority's International Affairs Office and submit their application to explore the possibility of benefiting from these facilities.

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