January 31, 2012
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and The State Bank of Pakistan (SBP) signed a Memorandum of Understanding (MOU) yesterday 31 January 2012 at SBP headquarter in Karachi, to cooperate in promoting trade and investments in Pakistan. Mr. Yaseen Anwar, the Governor SBP and Dr. Abdel Rahman El-Tayeb Taha, the Chief Executive Officer of ICIEC signed the MOU. The MOU aims at establishing a basis for the exchange of information between the two entities on banking industry’s condition and operating performance indicators and ICIEC’s exposures on the banks operating in the country. Headquartered in Jeddah, Saudi Arabia, ICIEC is the only multilateral Shariah Compliant ECA in the world providing credit and political risk insurance (Takaful) services. ICIEC’s risk mitigating instruments help its clients (exporters, banks and investors) in its member countries in expanding their business volumes in a risk and cost effective manner.
Since its inception in 1995, ICIEC has provided insurance commitments in excess of USD 11 billion. Over 17 years in business, ICIEC has carefully nurtured professional relationship with leading exporters, ECAs, reinsurers and banks. ICIEC is now a name which is trusted by its partners worldwide. ICIEC’s shareholders include 40 countries from the Organization Islamic Cooperation (OIC). Its main shareholder, Islamic Development Bank (IDB) owns 67% of the capital and is rated AAA by the three global rating agencies (S&P, Moody’s & Fitch). ICIEC is rated by Moody’s as Aa3 with a stable outlook on a stand-alone basis.
ICIEC’s operations in Pakistan among others include provision of Shariah compliant insurance coverage to LC issuing banks in Pakistan, which aims to help them in getting their LCs confirmed at competitive prices. Confirming banks benefit from ICIEC’s services in terms of credit risk transfer and favorable risk weight treatment under the Basel II framework. ICIEC also provides export credit insurance in support of Pakistani exporters and provides political risk insurance to encourage the flow of foreign investments into Pakistan.
Before signing of the MOU, Dr. Taha called on the Governor and discussed ICIEC’s plans to further expand its operations in Pakistan. The Governor welcomed and appreciated ICIEC’s interest in Pakistan and assured SBP’s full support and facilitation to ICIEC for promoting trade and investment in the country.
Dr. Taha said, “The signing of the MOU comes within the framework of the role of ICIEC in supporting financial institutions in its member countries, to enable them to provide export finance to their customers”. “I am confident that singing the MOU with SBP will greatly enhance ICIEC’s ability to support Pakistan’s international trade, particularly with OIC member countries” He added.
The Islamic Cooperation for the Insurance of Investment and Export Credit (ICIEC), Aa3 rated by Moody’s, an affiliate of the Islamic Development Bank, is the only Shariah compatible export credit and investment insurer in the world and the oldest and largest credit insurer in the Middle East and North Africa region. With an objective to increase the scope of trade transactions and facilitate and encourage the flow of FDI to its 40 member countries, ICIEC provides Shariah compliant export credit and country risk insurance and reinsurance products for exporters, investors and banks. Since 1995, ICIEC has covered over $11 billion worth of exports in petrochemical, oil, textiles, food, agriculture and infrastructure. It is a member of the Islamic Development Bank Group and a founder of the Aman Union, the first organization gathering investment and export credit agencies in the Arab and Islamic world under one umbrella. www.iciec.com
Jamel eddine Naga
Promotion & International Relations Unit, ICIEC
Tel : +966 2 6467608
Mobile: +966 5 68618945
Fax : +966 2 6443447
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