FimBank plc, the Malta-based trade finance banking group, has signed an agreement with the Arab Investment and Export Credit Guarantee Corporation (Dhaman), which provides for insurance cover on letters of credit issued or confirmed by FimBank.

"The agreement is an important development for FimBank's international trade finance activities as it reinforces the bank's global presence, particularly in Arab countries and markets," said FimBank chairman Najeeb Al-Saleh.

The agreement coincided with the visit by Prime Minister Lawrence Gonzi and a high level business delegation to the Gulf.

Set up in 1974, Dhaman is an autonomous financial organisation encompassing all Arab countries and a number of financial institutions in the region. The Kuwaiti-based institution's core objective is to promote capital mobility into Arab countries and to enhance Arab exports worldwide. It is rated AA by Standard & Poor's (S&P).

Mr Al-Saleh said: "The bank is excited with the potential this agreement creates to increase business with Arab countries and the Gulf. It will also help the bank explore the possibility of introducing factoring through an intermediary of Dhaman to the region."

Dhaman's director general, Fahad R. Al-Ibrahim, stated: "This agreement serves well one of our main objectives that is intended to support Arab investment and trade, and hence the economic and social development of the Arab World."

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