ICIEC’s collaboration with Bangladesh Bank expected to boost foreign direct investments - IFN

ICIEC’s collaboration with Bangladesh Bank expected to boost foreign direct investments

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BANGLADESH: The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has signed into an MoU with Bangladesh Bank, the central bank of Bangladesh to establish a basis for the exchange of information between the two on the state of the banking industry in Bangladesh, the banks’ operating performance, and ICIEC’s exposure to the banks. The MoU is also expected to enhance ICIEC’s involvement in Bangladesh, under the IDB Group Member Country Participation Strategy, through the enhancement of letter of credit coverage and support towards political risk insurance coverage of foreign direct investments in the republic. Dr Abdel Rahman Taha, the CEO of ICIEC said: “The signing of the 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 to investment projects. I am confident this will greatly enhance ICIEC’s ability to support exporting companies operating in Bangladesh, and also will help to attract more foreign direct investments.” As at the end of last year, the ICIEC’s Political Risk Insurance program had US$825 million in businesses insured – which the organization attributes to increased awareness among businesses to involve multilateral institutions in new investment programs. The ICIEC also cited its growing relationship with the World Bank under the Multilateral Investment Guarantee Agency program as a reason for its increased reach as a strategic reinsurance partner in World Bank member countries. The ICIEC is rated ‘Aa3’ by Moody’s and was set up with an authorized capital of US$620 million. Since its inception in August 1994, the organization’s cumulative business insured stands at US$16.39 billion.