Saudi Minister of Finance and Islamic Development Bank Group Governor of Saudi Arabia Dr. Ibrahim Abdulaziz Al-Assaf expressed his appreciation to the IDB Group President Dr. Ahmed Mohamed Ali and all IDB staff on the strength of the Bank’s financial standing amid troubling global financial times surrounding the mortgage crisis in the Untied States of America.
Dr. Al-Assaf’s comments were received by Dr. Ali in a letter in response to a letter originally sent by Dr. Ali addressing IDB Group’s position during the current financial crisis. Dr. Al-Assaf also expressed his wishes for the Bank to continue enjoying strong financial status and a lower volume of debt compared to other financial institution in the world.
Dr. Ali expressed his confidence that the Bank would not face difficulty in mobilizing additional resources from the market at competitive prices due to the Bank’s strong financial position.
IDB Group President’s letter stated that the Bank is immune from the risks involved surrounding the U.S. mortgage crisis explaining that the Bank possesses a strong financial status and owns a large capital base amounting to USD 4966 million as paid capital and subscribed capital of USD 23,007 million. Additionally, the shares of the member countries from the Bank’s capital amounts to USD 8857 million and added that IDB debt amounts to a relatively low 21 percent of the shares of the capital in comparison to other international financial institutions. The President assured that since the Bank possess a strong financial position and high credit rating; it can help in the mobilization of funds from the market in comparison to other institutions. Moreover, Dr. Ali stated that the current turmoil in international financial markets can provide opportunities for the Bank to meet the growing requirements for member countries. The Bank will also work on the efficient placement of tools and mechanisms in regards to this matter. Dr. Ali assured that the Bank will be able to deliver towards member countries’ needs, continuing to operate its normal operations despite the global financial crisis. IDB Group President affirmed that the Bank administration is closely monitoring and observing the improvements among international financial markets and will be evaluating its possible effects on the IDB Group and its member countries.
