Aktif Bank, Turkey’s pioneering investment bank has concluded a “Letter of Credit Insurance Master Policy” with Arab Investment & Export Credit Guarantee Corporation (DHAMAN)
Aktif Bank, Turkey's pioneering investment bank has concluded a "Letter of Credit Insurance Master Policy" with Arab Investment & Export Credit Guarantee Corporation (DHAMAN) which has been serving to promote business with Arab countries for more than 40 years. Under the scope of this cooperation, both the payment risk under the L/C's confirmed by Aktif Bank and the investments in the region are expected to be insured. This will span 21 Aarabic countries and will be helpful to increase the business volume of companies doing business in the region and increasing trade flows betwen Turkey and Arab countries.
The agreement between Aktif Bank and Arab Company for Investment and Export Credit Guarantee (DHAMAN) was signed on 8 October 2015 at the event titled "Business Insurance in Arabic Countries" organzied by the Foreign Economic Relations Board (DEİK) at the Intercontinental Istanbul. The Letter of Credit Insurance Master Policy Agreement was counter-signed by Aktif Bank CEO Dr. Serdar Sümer and DHAMAN Director General Mr. Fahad Al-Ibrahim.
Under the scope of this agreement, the non-payment risk under the export letters of credit confirmed by Aktif Bank will be insured. The agreement also makes it possible to insure receivables under avalized (bank guaranteed) export receivables. It is also expected that Aktif Bank and DHAMAN will also enter into agreements to cover foreign trade, political risk and other insurance products as well. This cooperation will span DHAMAN member countries like Saudi Arabia, Kuwait, UAE, Libya, Algeria, Iraq, Qatar, Bahrain, Jordan and Tunisia.
"Will greatly contribute to Turkey's export volume"
Aktif Bank CEO Dr. Serdar Sümer has underlined that Turkey has in recent years attained a stellar economical performance and is the rising star in the region despite the economical problems through which the World and European economies are passing through. He has made the following statement in this regard:
"The trade volume between Turkey and Arab countries has grown significantly in the past 10 years. The figure which stood at less than 10 billion dollars now stands at more than 50 billion dollars. We believe that the actual capacity is much bigger than that. The deepening and strengthening of the trade between Turkey and Arab countries particularly in such areas like energy and contracting will further contribute to the regional economic ties. In this regard, we will strive to make the insurance products provided by one of the most established and strong institutions in the market, namely DHAMAN to the benefit of Turkish companies and investors. The cooperation will also be useful in creating awareness about export, import and investment insurance products. Our businessmen will no longer see commercial and non-commercial risks as an obstacle and will continue their economical activities in a safe and sustainable manner."