Disbursement Procedures - Islamic Development Bank

among others, for training and research, provision of relief in the form of appropriate goods
and services to member countries and Islamic communities afflicted by natural disasters
and calamities, promotion and furtherance of Islamic causes and assistance to Muslim
communities in non-member countries to improve their socio-economic conditions.
Other Operations of the Bank
1.13 In addition to the above modes of financing , there are three schemes which play a
significant role in promoting trade among IDB member countries. These are (i) Import
Trade Financing Operations (ITFO), (ii) Export Financing Scheme (EFS) and (iii) Islamic
Bank's Portfolio for Investment and Development (IBP) (See Chapter No……… and No.
………. For ITFO and EFS procedures of financing respectively).
Currencies of Disbursement
1.14 The accounting currency of the IDB is the Islamic Dinar (ID) with
1 ID = 1 Special Drawing Right (SDR)
1.15 The Bank disburses in all major convertible currencies as well as in local currencies
of member countries depending on the supply contracts and the provision in the IDB
financing agreement. The Bank accepts repayment in most major convertible currencies.
All disbursements and repayments are converted into Islamic Dinars for accounting
purposes.
1.16 The exchange rate for the Islamic Dinar vis-à-vis the currency of disbursement or
repayment is based on the IMF rate for the SDR on the date preceding the day of the
payment or receipt of funds.
The Project Cycle
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The overall framework under which the Bank gets involved in a number country is the
Country Assistance Strategy Study (CASS). This strategy establishes the composition and
level of assistance to be provided based on priorities of the respective member country
and the medium term strategy of the Bank. CASS is applied instrumentally in identifying
and designing projects that fit into and support the developmental strategy of the country
and the bank.
Identification
This is the first phase of the cycle and it provides against the background of the
development plan of the country and the priorities of the Bank through its Medium-Term
Strategy Agenda. Identification can come from several sources but must also meet a prime
face test of feasibility.
One identified, a project is incorporated into a rolling three-year work program and it forms
the basis of the Banks future operations in that country. Country rolling work programs are
used for programming and budgeting operations and assuring that the resources are
available to support each phase of the cycle.
Preparation