The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), member of the Islamic Development Bank Group, and the Bangladesh Bank (The Central Bank of Bangladesh) signed a Memorandum of Understanding (MOU), which aims to boost cooperation in promoting trade and investment in Bangladesh.
The MOU was signed on behalf of ICIEC by Mr. Oussama A. Kaissi, ICIEC’s Chief Executive Officer (CEO) and, on behalf of the Bank of Bangladesh, Mr. Ahmed Jamal, Executive Director, Bangladesh Bank. 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.
The signing ceremony, which took place at the Bangladesh Bank Head Quarters and was attended by
H.E Mr. Fazle Kabir, Governor, Bangladesh Bank, and several senior Bangladesh Bank officials. Honorary guests included Mr.Shah Habibul Hassan, Senior Assistant Chief, Economic Relations Division (ERD), MoF and Mr. Moinul Islam, Secretary, Bangladesh Investment Authority (BIDA).
ICIEC has short and medium term exposures in excess of USD 150 million in Bangladesh and an equivalent amount in the pipeline. The insurance cover primarily helps mitigate the risk of non-honoring 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 & Ready Made Garments (RMG) sector-related capital equipment in excess of US$ 1.6 billion in Bangladesh.
ICIEC plans to work 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 Bangladeshi exports.
Commenting during the signing of the MOU, Mr. Oussama A. Kaissi, the 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”. He added “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 letter of credit (LC) coverage and support in terms of political risk insurance coverage of Foreign Direct Investments (FDI)”.