ICIEC inks MoU with Central Bank of Bangladesh to promote trade & invt
Source: Middle East Insurance Review | Dec 2017
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), member of the Islamic Development Bank Group, and the Central Bank of Bangladesh have signed a Memorandum of Understanding (MoU) which aims to boost cooperation in promoting trade and investment in Bangladesh.
The objective of the MoU is to establish a basis for the exchange of information between the two institutions on the Bangladesh’s banking industry and operating performance. It will serve as means of better managing ICIEC’s exposures in Bangladesh. ICIEC has short- and medium-term exposures in excess of US$150 million in Bangladesh and an equivalent amount in the pipeline. The cover primarily helps mitigate the risk of non-honouring of Letter of Credits (LCs) issued by major public and private banks in Bangladesh. ICIEC has so far helped facilitate the trade of strategic goods, telecom and ready-made-garments sector-related capital equipment in excess of $1.6 billion in Bangladesh.
ICIEC plans to collaborate closely with the various investment, regulatory and trade bodies in Bangladesh to work towards providing Bangladeshi exporters access to export credit insurance services, with the ultimate objective of boosting the country’s exports.
Mr Oussama A Kaissi, CEO of ICIEC, said: “The signing of this MoU comes within the framework of ICIEC’s mandate to support the development of its member countries by providing export credit and political risk insurance for investment projects.“We foresee an enormous potential in Bangladesh, and ICIEC remains dedicated to achieving its objectives under the IDB Group Member Country Partnership Strategy (MCPS) for Bangladesh through enhanced LC coverage and support in terms of political risk insurance coverage of Foreign Direct Investments.” M