Talks with BB over MoU reach impasse

A proposal made by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) for signing a memorandum of understanding (MoU) has reached an impasse, officials said.  
The ICIEC, an arm of the Islamic Development Bank (IDB), has sought cooperation from the finance minister for finalisation of a memorandum of understanding (MoU) to expand further the scope of its service in Bangladesh.
Currently, ICIEC's negotiations with the Bangladesh Bank (BB) on the MoU have reached an impasse over the requirement, as communicated by the BB, that ICIEC register and receive certification from the Insurance Development and Regulatory Authority (IDRA), according to a letter sent to the finance minister recently.
Earlier, the ICIEC approached the central bank to sign a memorandum of understanding (MoU). The main objective of the MoU is to formalise relationship with the BB and establish a basis for communication and exchange of information between the two entities, according to ICIEC.  
The finance ministry will now take opinions from the BB in this regard.
Since its establishment on August 01 in 1994, the ICIEC has provided its insurance services to its member states.
"Bangladesh became a member of the ICIEC in 2011. Since its inception, the ICIEC has insured and helped facilitate trade of US$ 1.353 billion, having total cumulated commitments/approvals in Bangladesh amounting to US$ 1.75 billion," according to an ICIEC document.
ICIEC's current exposure for the country as of date is in excess of US$ 179 million, a major portion of this exposure US$ 116 million is in long term nature, the document said.
It involves import of capital equipment (computerised knitting machines) produced by Shima Seiki (SS) Japan to several large knitwear manufacturing companies of Bangladesh. The ICIEC is insuring non-honouring of medium-term deferred LC's issued by the BB, according to info of ICIEC.
The ICIEC in its letter said, "It is apparent that we view limitless potential, benefits and opportunities for ICIEC's service and support to Bangladesh's banking sector and the trade and investment community."
As per ICIEC's Article of Agreement, which has been signed and ratified by Bangladesh, the ICIEC may operate and conduct business in Bangladesh without seeking licensing or registration, and the same naturally applies to all ICIEC's  member states, the letter said.
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