TEHRAN - Iran's Minister of Economic Affairs and Finance Abdolnasser Hemmati stated in a meeting with the head of the Islamic Development Bank (IDB) that the Islamic Republic is determined to fulfill its obligations towards IDB.

Hemmati, who has traveled to Riyadh to attend the 28th World Investment Summit, met and talked with Suleiman Al-Jasser, the head of the Islamic Development Bank, on Monday, IRNA reported.

“We expect the Islamic Development Bank to play a more effective role in financing Iran's projects,” he stated.

"The Islamic Republic of Iran is determined to fulfill its obligations towards the Islamic Development Bank," Hemmati added.

Back in April Iran's former Economy Minister Ehsan Khandouzi proposed establishing a new financing mechanism using a preferential rate within the members of the IDB.

Khandouzi made the proposal on the sidelines of the 50th annual IDB meeting in Riyadh, Saudi Arabia.

Based in Jeddah, the multilateral development finance institution is focused on Islamic finance for infrastructure development and has 57 shareholding members.

"The agenda for next year's projects to be financed by the Islamic Development Bank in Islamic countries has been approved by the members, and the proposal of the Islamic Republic of Iran to create a new preferential financing window for members has been endorsed," he stated.

He added that the financial burden of this preferential financing arrangement would be shouldered by the shareholders with sound macroeconomic performance, allowing the IDB to utilize preferential financing methods as an incentive for the first time.

The official further explained that international and multilateral development banks often use preferential financing to provide special assistance to prioritized projects or those with unique needs, previously unavailable at the IDB.

He stressed that the IDB group must reformulate effective reform policies, and strengthen the principles of governance, and ensure economic, financial, and environmental sustainability to overcome challenges.

The Iranian minister proposed that the IDB should seriously consider investing in research and development of Islamic fintech (financial technology) solutions to improve access to financial services and facilitate financial transactions among Islamic countries.

Iran is ready to share its knowledge and experience to cooperate with the bank and its member countries in that regard, he added.

EF/