ISLAMIC TRADE FINANCE SOLUTIONS PROVIDER

Transcription

1 ISLAMIC TRADE FINANCE SOLUTIONS PROVIDER

2 SOMETHING ABOUT US SERVING MEMBER AND NON-MEMBER COUNTRIES ITFC became operational in January, 2008 with the purpose of advancing trade to improve the economic condition and livelihood of people across the world As a leader in Shari ah-compliant trade finance, ITFC deploys its expertise and funds to businesses and governments in its member countries. Our primary focus is to encourage more intratrade among OIC Member Countries 1

3 WHERE WE OPERATE 56 MEMBER COUNTRIES + SUB-SAHARAN AFRICA NON- MEMBERS SOUTH AMERICA MENA SUB-SAHARAN AFRICA CENTRAL ASIA ASIA PACIFIC 2

4 TRADE APPROVALS (US$ billion) Total approvals in 2014 exceeded the US$5.05 billion achieved in 2013 Since inception in 2008, ITFC s cumulative funded financing reached to US$ 25 billion. From TFPD to ITFC, the cumulative trade approvals reached up to US$57 bn in

5 TRADE APPROVALS FOR LDMCS 64% Trade approvals for other countries. 36% Providing trade for LDMCS In 2014, Trade Finance Approvals for LDMCs reached US$ 1,865 million representing 36% of total approvals. 4

6 FINANCING WITH DEVELOPMENT IMPACT ENERGY COMMODITIES INDUSTRIAL INPUTS AGRICULTURE & FOOD 5

7 MULTIPLE CHALLENGES TRADE FINANCE IN DEVELOPING COUNTRIES Weak infrastructure Limited institutional capacity Lack of technical and managerial skills Low technological capabilities Small size of transactions Bureaucracy and legal frameworks TRADE FINANCE SOLUTIONS FOR DEVELOPMENT Understanding local context Constructive dialogue with stakeholders Tailored Made Structures Institutional capacity building HR training and development Holistic approach (short, medium and long terms) 6

8 2014 -TRADE-FINANCE FOR DEVELOPING COUNTRIES Country Commodity Amount Country Commodity Amount Bangladesh Energy US$1.4 billion Mali Agriculture US$23 million Benin Agriculture US$20 million Niger Agriculture US$20 million Burkina Cotton Export US$120 million Pakistan Energy US$500 million Cameroon Cotton Export US$18 million Palestine Olive Oil US$1 million Comoros Energy US$20 million Senegal Groundnuts US$30 million Djibouti Energy US$30 million Suriname Energy US$30 million Gambia Energy & Agro US$62 million Tajikistan Energy & Wheat US$10 million Kyrgyzstan Line of financing US$10 million Togo Lines of Financing US$40 million 7

9 ENERGY FINANCING IN COMOROS 8

10 ENERGY FINANCING IN COMOROS Securing and rationalizing cost of Comoros entire energy imports Tailor made structure to decrease energy public spending (US$5 million savings or 2.5% of general Government total expenditure) Stronger Petroleum Company (SCH), contributing to energy security and growth Positive macroeconomic impact, with increasing Public Treasury income and more focus on growth generating activities 9

11 TRADE COOPERATION & PROMOTION PROGRAM COLLABORATION FACILITATION INTEGRATION 10

12 TCPP BUSINESS LINES TRADE PROMOTION TRADE FACILITATION CAPACITY BUILDING Promoting trade and trade cooperation among member countries to enable them to participate in the process and to take advantage of globalization Facilitating trade by promoting economic integration between member countries and the removal of trade barriers and improve trade infrastructure Strengthening human and institutional capacities and support sustainability of national trade sources between member countries DEVELOPMENT OF STRATEGIC COMMODITIES Development of competitiveness in the export sectors in which there are comparative advantages TRADE MAINSTREAMING Place trade on the work agenda of countries, institutions, local and regional organizations since trade has a positive and effective impact on economic development. 11

13 THE ISLAMIC CORPORATION FOR THE INSURANCE OF INVESTMENT AND EXPORT CREDIT Member of Islamic Development Bank Group CHALLENGES OF TRADE IN OIC & THE ROLE OF EXPORT CREDIT INSURANCE

14 TABLE OF CONTENTS ROLE OF CREDIT INSURANCE AT THE GLOBAL LEVEL CREDIT INSURANCE INDUSTRY IN OIC MEMBER COUNTRIES (AMAN UNION) ICIEC ROLE IN FACILITATING INTRA OIC TRADE INSTRUMENTS TO FACILITATE TRADE 13

15 ROLE OF CREDIT INSURANCE AT THE GLOBAL LEVEL BERNE UNION G20 IFC USD 1.9 TRILLION S COVER (10% OF THE WORLD TRADE IN 2014) COMMITTED USD 250B TO SUPPORT TRADE THROUGH ECAS AND MDBS USD 5.0 B GLOBAL TRADE FINANCE PROGRAM 14

16 CREDIT INSURANCE INDUSTRY IN OIC MCs CREATED IN 2009, UNDER THE LEADERSHIP OF ICIEC AND DHAMAN AIMS AT STRENGTHENING COOPERATION BETWEEN ECAS IN THE OIC MCs AMAN UNION CURRENTLY INCLUDES 18 ECAS FROM OIC MCS Business insured by AMAN UNION members (in Billion USD) Turk Eximbank ICIEC EGFI (Iran) Dhaman SEP (Saudi Arabia) Others (*) IT REPRESENTS 6.5% OF INTRA OIC EXPORTS. Total

17 ICIEC ROLE IN FACILITATING INTRA-OIC TRADE 3,313 3,201 3,362 4,424 1,985 1,426 1, ,193 1, ICIEC total Business Insured Business Insured Intra OIC ON AVERAGE, INTRA OIC TRADE REPRESENTS 40% OF TOTAL BUSINESS INSURED BY ICIEC IN THE PAST DECADE 16

18 INSTRUMENTS TO FACILITATE TRADE: (COMPREHENSIVE SHORT TERM POLICY) COVER OF WHOLE TURNOVER BUSINESS TO EXPORTS FROM MEMBER HIKMA PHARMACEUTICALS (JORDAN) Export Contract HIKMA BUYERS COUNTRIES TENOR : MAY REACH 1 YEAR Insurance contract POSSIBILITY TO ASSIGN THE POLICY TO LOSS PAYEE (FINANCIER) LOSS PAYEE BANK Claims payment Business indicators : Business insured (2014) : USD 70 m Countries covered : 16 Buyers covered : 113 Policyholder since :

19 INSTRUMENTS TO FACILITATE TRADE: (DOCUMENTARY CREDIT INSURANCE POLICY) IMPORTERS Export contract EXPORTER INSURED UNCONFIRMED LCS ISSUED RELATED TO EXPORTS FROM MCS LC issuance IMPORTER S BANK LC confirmation Export Financing ATTIJARI WAFA BANK PROVIDE CAPACITY BUILDING TO CONFIRMING BANKS Business indicators : Buisness insured (2014) : USD 53m Countries covered : 6 Buyers covered : 7 Policyholder since :

20 CONCLUSION The development and expansion of the export credit insurance industry in OIC member countries both at the regional and national levels, must be a key element of the strategy to increase intra OIC and global trade 19

21 THANK YOU