Islamic Development Bank launches $2 billion COVID-19 aid package

The 3Rs package is expected to deliver medium-term action through financing trade and SMEs/Bloomberg

The Islamic Development Bank (IsDB) has launched a $2 billion COVID-19 aid package for its member states.

The 3Rs package (Respond, Restore, and Restart) is expected to deliver medium-term action through financing trade and SMEs to sustain activity in core strategic value chains and ensure continuity of the necessary supplies mainly to the health and food sectors.

IsDB stated that the package delivers long-term action to build resilient economies on solid foundations and catalyse private investment by supporting economic recovery and countercyclical spending, with a targeted $10 billion that aims to unlock $1 trillion worth of investments.

The bank said that the package 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.

Dr. Bandar Hajjar, the IsDB President, said, “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.’

Earlier this month, the Shari'ah-compliant multilateral lender launched a $730 million facility to help member countries mitigate the socio-economic impact of the pandemic.

The facility includes $$280 million from the Bank and Islamic Solidarity Fund for Development for sovereign projects and programmes, $300 million from International Islamic Trade Finance Corporation for trade finance and $150 million from ICIEC for insurance coverage.