The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of Jeddah-based Islamic Development Bank Group, has said it will support letter of credit (L/C) transactions in which Bahrain Middle East Bank (BMEB) participates.

The two sides recently signed two agreements in support of the bank's trade finance operations: the Documentary Credit Insurance Policy (DCIP) and the Bank Master Policy (BMP).

Risk mitigation

The DCIP provides BMEB with insurance cover against a range of risks affecting its L/C transactions in ICIEC member countries.

The BMP meanwhile aims to support BMEB's export financing on an Islamic basis by using export receivables as security for the repayment of the credit extended.

Trade diversification

According to BMEB's chief executive officer, Korhan Alev, trade finance forms an important focus of the bank's diversification strategy.

Established in 1982, the bank already provides a range of trade finance solutions for import and export transactions.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.