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;
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.