Iran, Pakistan and Turkey agreed to establish a regional ECO Reinsurance Company

  Tehran, July, 2004

PRESS RELEASE

            Iran, Pakistan and Turkey agreed to establish a regional ECO Reinsurance Company by signing a Memorandum of Understanding on 15 March 1995.

            The purpose of the Company shall be to supplement the existing reinsurance services in the region, promote growth of the national underwriting and retention capacities, minimize the outflow of foreign exchange from the region and to support economic development in the region.

            A Trilateral Interim Committee was formed which will meet from time to time to smoothen the way pf the establishment of this important institution. The Trilateral Interim Committee in its various meetings so far has reviewed the relevant issues such as the development of the business plan and signing of the Articles of Agreement already finalized by a group of Experts from the three founding member countries.

            The last meeting of the Trilateral Interim Committee on the establishment of ECO Reinsurance Company was held on June 23-24, 2004 in Islamabad, Pakistan but was unable to sign the Articles of Agreement of the Company because of the lack of formal authorization of the delegates of the Islamic Republic of Iran and Republic of Turkey and it was decided to sign it in the next meeting.

            The meeting also considered the Report of a UNDP Consultant on the Business Plan for the establishment of Reinsurance Company and decided that since all the essential and required aspects of this report have been covered in the Articles of Agreement of the Company, the report is not relevant at the moment. However, the report can be taken into consideration after the establishment of ECO Reinsurance Company.

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