OPEC Fund For International Development - History

History

Following the First OPEC Summit in Algiers, Algeria in 1975, Member Countries expressed their commitment to assist the developing countries through a collective financial facility. As a result, in 1976, the Finance Ministers of Member Countries met and established the OPEC Special Fund through which Member countries would channel aid to developing countries. OFID started its operations in 1976, with an initial endowment of $800 million and in little over a year, its resources had doubled. By the end of 1977 it had extended 71 loans to 58 developing countries, as well as channelling donations from its Member Countries to other development institutions, including the International Monetary Fund (IMF) Trust Fund and the International Fund for Agricultural Development (IFAD). As a result of its successful performance, Member Countries decided in 1980 to convert the temporary facility into a permanent legal entity called the OPEC Fund for International Development (OFID). OFID became a fully fledged, permanent international development agency in May 1980.