The Islamic Corporation for Insurance of Investment and Export Credit (ICIEC) CEO Osama Abdul Rahman Kaissi said their export insurance policy differs between various sectors, including the industrial sector, according to the risk coverage of each country due to its political developments and banking insurance.
Kaissi told Daily News Egypt that the value premium is 1.5% of any export contract that ICIEC insures. The corporation’s financing portfolio for projects varies according to the company’s paid capital and the risks from state to state.
ICIEC divided supply segments into different terms, including short-term, medium-term, and long-term. The length of the short-term risk category is from a year and a half to two years, medium-term risk is seven to eight years, and long-term risk is from eight to 20 years. The corporation studies each case of exporters who were unable to pay the premium, to identify the reason to address it. Most of the reasons were related to the lack of availability of hard currency and the devaluation of the state currency.
Kaissi said Egypt is classified as a medium-risk country in terms of its finance export insurance. The value of the insurance varies from one sector to another.
“For Egypt, we work to support exports and exporters, create job opportunities, participate by providing hard currency, and attract foreign direct investment (FDI),” Kaissi said.
“ICIEC has operations with Egyptian banks such as Banque Misr, the National Bank of Egypt (NBE), Banque du Caire, Baraka, and the Arab African International Bank (AAIB). We seek to increase our operations with other new banks in Egypt.”
ICIEC signed a cooperation protocol with the Ministry of Industry to study insurance of long-term and mid- term export projects and open new Egyptian markets in Africa.
Forming the new committee between ICIEC and the ministry will guarantee export, identify the priority guarantee, and address banks to secure exports through them. ICIEC’s financing portfolio amounted to $5.5bn last year.
