Islamic Bank approves $1.5 billion fund

The board of executive Directors of the Islamic Development Bank (IDB) approved setting up an infrastructure fund with a capital of 1.5 billion dollars.

The board also endorsed 210 million dollars in new funds for development projects in member states.

This came at the conclusion of the IDB 180th session chaired by the Bank's President Ahmad Mohammah Ali.

In a statement released following the bank's two-day meeting, the bank's chief said the fund was set up in response to the increasing needs of member states in funding infrastructure projects, particularly in fields of energy, telecommunications and roads.

IDB endorsed the draft report on bank activities in 1997, which will be submitted to the 23rd annual meeting of the bank's board of governors in Benin in November.

IDB also allocated $102 million in loans for eight projects in eight countries and another $60 million to finance three trade transactions for three member states.

The bank allocated $763,000 as technical assistance for a member state and $677,000 for Moslem minorities in non-member states.

Since its establishment, the IDB extended $20 billion for inter-trade programs and development projects for member states.