The Islamic Development Bank Group (IsDBG) and the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the IsDBG, have signed an agency agreement for the implementation of IsDBG’s R2 COVID support package, which will assist IsDBG member countries, including Egypt, to restore their economies and recover from the impact of the COVID-19 pandemic.

The agreement was inked by Bandar Hajjar, the president of the IsDBG, and Ayman Amin Sejiny, the CEO of the ICD.

The agreement is expected to improve intra-group collaboration and create room for cooperation with other multilateral development banks (MDBs) and international financial institutions (IFIs).

In accordance with the agreement, ICD will offer its expertise in the implementation of the R2 “Restore Program”, a COVID-19 support program for line of finance transactions.

ICD will further strengthen its relationship with the governments of the member countries, which will open doors for future cooperation opportunities and policy dialogues for the promotion of Islamic finance, Islamic banking, and supporting private sector development and job creation, in addition to mobilising extra resources from the market, leveraging its network and syndication skills.

“The agreement is a new type of intra-group cooperation beyond the IsDB’s R2 program. By agreeing on a clear accountability framework and assigning roles and responsibilities between IsDB and ICD, we are on the path of mainstreaming group synergies, which will help us go beyond our limits,” said Bandar.

“As the private sector arm of the Islamic Development Bank Group, ICD will continue to make important contributions to the development of the SMEs sector in our member countries through dedicated line of finance facilities,” he continued.

Meanwhile, Sejiny stated that the agreement is an important milestone in intra-group collaboration and expansion of their partnership with member countries, MDBs, IFIs, and a wider community of private sector businesses as the backbone of sustainable growth.

“The successful implementation of this agreement will help us to introduce many other initiatives on the same platform”, according to Sejiny.