Saudi Minister of Finance and Islamic Development Bank Group Governor of Saudi Arabia Dr. Ibrahim Bin Abdel Aziz Al-Assaf expressed appreciation to the IDB Group President Dr. Ahmad Mohamed Ali and all IDB staff on the strength of the Bank's financial standing amid the global financial turmoil associated with the mortgage crisis in the Untied States of America. Dr. Al-Assaf’s comments were comments were expressed in a letter in response to a communication sent by Dr. Ali addressing IDB Group’s position in the wake of the current financial crisis. Dr. Al-Assaf also expressed hope that the Bank would continue enjoying strong financial status and a lower volume of debt compared to other financial institutions in the world.
In his letter, Dr. Ali expressed confidence that the Bank would not face difficulty in mobilizing additional resources from the market at competitive rates due to the Bank’s strong financial position.
He further mentioned that the Bank is immune from the risks surrounding the U.S. mortgage crisis explaining that the Bank possesses a strong financial status and 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 possesses a strong financial position and high credit rating, it can help in the mobilization of funds from the market in comparison to other institutions. Additionally, he 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 its equity. Dr. Ali assured that the Bank will be able to deliver its commitments to member countries and continue with its normal operations despite the global financial crisis. He affirmed that the Bank's administration is closely monitoring the developments in the international financial markets and will be evaluating its effects on the IDB Group and its member countries.