The Islamic Finance Bank has just granted the Moroccan National Railways (ONCF) a loan of 1.23 billion dirhams (USD 101.5 million). This credit comes within the framework of an Istisnaâ agreement (a contractual agreement for manufacturing goods and commodities, allowing cash payment in advance and future delivery or a future payment and future delivery), one of the flagship products of Islamic finance. An operation that has never been carried out until then in Morocco, the Assabah newspaper informs.
The loan contract concerns the construction of several TGV (High Speed Train) stations.
The Minister of Finance has already given his approval to grant a state guarantee to the international financing institution, the IDB. This is the first time that a Moroccan public institution has used Istisnaâ-type alternative financing.