In a move designed to help Turkish investors and contractors doing business in the member countries of the Organisation of Islamic Cooperation (OIC), the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), and Turk Eximbank, Turkey’s National Export-Import Credit Bank, recently signed a Memorandum of Understanding (MoU) at the annual meeting of the Aman Union (the association of Arab and Islamic Export Credit Agencies).
The signatories were Dr Abdel Rahman El-Tayeb Taha, chief executive officer of ICIEC, and Hayrettin Kaplan, general manager of Turk Eximbank.
The MoU aims to provide political risk insurance to Turkish companies doing business in ICIEC member countries. They will benefit from the co-operation of the two signatories in insuring their investments against the risk of war, civil disturbances, expropriation, transfer restrictions and the non-honouring of sovereign financial obligations by a host country.
Commenting on the MoU, Dr Taha said, “Turkish companies are very active in doing business in OIC member countries, especially in the Middle East, Africa and CIS countries – and this is where ICIEC’s expertise lies. On the other hand, Turk Eximbank is the first name that any Turkish company thinks of for the insurance of export credit.
“Therefore, it is natural that the two institutions should co-operate to provide this critical service to Turkish exporters. ICIEC is also active in Turkey, since it has signed more than 11 insurance policies in favour of Turkish banks and investors.”
Hayrettin Kaplan said, “The bank has provided insurance coverage and lending facilities to Turkish exporters and contractors operating in the Middle East, Africa and OIC member countries. The agreement will enhance the capacity of Turk Eximbank’s activities in those countries by providing co–insurance and re-insurance facilities.
“Moreover, a new instrument, investment insurance, which is run by ICIEC, will be available to Turkish exporters, contractors and investors through Turk Eximbank. The agreement will pave the way to collaboration in the countries of operations and, at the same time, there will be a sharing of experience and knowledge.”