Jeddah: The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Arab Investment & Export Credit Guarantee Corporation (DHAMAN) have jointly signed a Quota Share Reinsurance Agreement with the Jordan Loan Guarantee Corporation (JLGC).
The agreement serves to solidify the deep and historical relationship the three entities have fostered over recent years – both at the transaction level and more strategically as members of the AMAN UNION. JLGC is the national Export Credit Agency (ECA) of Jordan, a member country served by both ICIEC and DHAMAN. Reinsurance is one of the main risk and capital management tools available to ECAs, allowing them to share risks amongst other insurance providers to scale up their capacity.
The objective of the tripartite agreement is to increase the transfer of risk capacity and technical expertise from ICIEC and DHAMAN to JLGC. As the national ECA, the treaty serves to benefit JLGC by supporting risk sharing between the three institutions, assisting JLGC in increasing its capacity, thus bolstering its developmental impact and strengthening the Jordanian economy. JLGC will also benefit from the transfer of knowledge and expertise from the two multilateral partners.
For ICIEC, the treaty is one of the many formalized partnerships that have further strengthened in the context of the Corporation’s COVID-19 response efforts. ICIEC CEO, Mr. Oussama Kaissi, claims, “ICIEC has an important level of cooperation with Jordanian partners, especially in the pharmaceutical and financial services sector, which are now ever more important. This agreement will help JLGC increase capacity in these areas, enhancing their capacity to support COVID-19 recovery. Reinsurance is one way that the Corporation is supporting national ECAs through the pandemic and its recovery period. Reinsurance treaties, such as this one, can be replicated to other interested national ECAs from ICIEC and DHAMAN member countries to help scale their capacity.”
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is a member of the Islamic Development Bank (IsDB) Group. ICIEC was established in 1994 as a multilateral institution to strengthen the economic relations between member countries of the OIC. ICIEC is rated Aa3 insurance financial strength credit by Moody’s with a Stable Outlook. ICIEC’s vision is to be recognized as the preferred enabler of trade and investment for sustainable economic development in Member Countries. Its mission is to facilitate trade and investment between member countries and the world through the provision of Shariah compliant risk mitigation tools and financial solutions.
“The Arab Investment & Export Credit Guarantee Corporation "Dhaman" is a multilateral organization based in Kuwait and owned by of 21 Arab states & 4 Pan-Arab financial institutions. Dhaman was established in 1974 as the first multilateral investment and export credit insurance provider in the World, it aims at promoting Arab export as well as the flow of Foreign Direct Investments (FDI’s) into the Arab World through providing insurance protection against credit and/or Political Risks. Dhaman is rated "AA- stable outlook" by Standard & Poor's”.
Jordan Loan Guarantee Corporation (JLGC) is the national credit guarantee corporation that manages several loan guarantee programs besides managing the export credit insurance scheme in Jordan and being the implementing agency for the Innovative Startup and SMEs Fund (ISSF) that was created by the Central Bank of Jordan and World Bank. JLGC was created by the Central Bank of Jordan back in 1994 as a Public shareholding company with the Central Bank holding 45% of the paid up capital of the company and the rest of shares are mainly held by commercial banks operating in the country. The company was found to enhance sustainable economic growth in Jordan through improving the credit environment for economically viable Small & Medium Sized enterprises and providing credit insurance to national exporters.
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© Press Release 2021