DR Congo: Central bank partners with trade insurance agency

Source: Middle East Insurance Review | Jul 2015

The Central Bank of the Democratic Republic of Congo (DRC) has partnered with the African Trade Insurance Agency (ATI) as part of its efforts to bring a competitive advantage to the country’s banking industry.

As part of the deal, banks will receive up to 50% capital relief on any transaction that is secured with a credit risk guarantee supplied by ATI. This will allow local banks in the DRC to free up capital, enabling them to lend at the same levels as their international counterparts.

ATI said the move also makes it the first multilateral agency of its kind to be granted this standing, based largely on its credit rating. ATI has been in discussions with the Common Market for Eastern and Southern Africa (COMESA) central banks, including the DRC’s, for several years and this is the first significant outcome of those discussions. The Agency is hopeful that the move by the DRC’s Central Bank will pave the way for others in the region to follow.

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