SOLUTIONS / Banks and Financials Institutions

Investment Insurance Solutions

Non-Honoring of Sovereign Financial Obligations / Political Risk Insurance of Cross-Border Loans

ICIEC

COVERED RISKS

Non-Honoring of Sovereign Financial Obligations
  • Non-Honoring of Financial Obligations by the sovereign / sub-sovereign.
Political Risk Insurance of Cross-Border Loans
  • Currency inconvertibility and transfer restrictions.
  • Expropriation.
  • War or civil disturban

 

KEY BENEFITS

  • Protects balance sheet against losses due to non-commercial risks.
  • Attracts additional project capital.
  • Enables to penetrate high-risk markets.

 

ELIGIBILITY

  • New investments or expansion of existing investments/projects.
  • Investment not prohibited by Shariah.
  • Investments being undertaken in a Member Country.

 

TENOR OF COVER

Up to 20 years

 

 

HOW IT WORKS

 

  1. Investor submits a preliminary application to ICIEC, ICIEC gives its initial 'in-principle' approval and requests a full detailed application.
  2. On the basis of the detailed application, ICIEC will assess the project/country risks.
  3. Should ICIEC management approve the insurance, ICIEC will then make an offer of insurance to the investor
  4. ICIEC will obtain the non-objection of the government of the host country.
  5. In the case of risk occurrence, the investor submits a claim to ICIEC and ICIEC pays a compensation.