The Inter-Arab Investment Guarantee Corporation (IAIGC) announced results for 1994 showing a slight improvement in profits. Net income last year was KD 2.04 million ($6.8 million), compared with KD 2.02 million ($6.75 million) in 1993. This is still well below 1992 earnings of KD 4.3 million ($14.5 million).
Despite the rise in profits, the value of guarantee contracts, including investment and export guarantees, signed in 1994 dropped sharply to KD 36.4 million ($123 million), compared with KD 61.4 million ($205 million) in 1993. A total of 13 countries benefited, including Libya, which accounted for 25 per cent of the total value, followed by Egypt and Sudan, which accounted for 23 per cent and 17 per cent, respectively. Lebanon accounted for 10 per cent of the value of contracts signed.
In 1994, recoverable claims fell 5 per cent to KD 24.2 million ($81 million). This compares with a 15 per cent rise in recoverable claims in 1993 to KD 25.4 million ($85 million). Reinsurance claims fell 23 per cent in 1994 to KD 5.7 million ($19 million). IAIGC paid one compensation claim worth $287,424 in 1994, and received $5 million for compensation previously paid from one member country.
The corporation received a qualified report from the auditor, Jassim Ahmad al-Fahad. The auditor’s report says $111 million, due mainly from two member countries on promissory notes and recoverable claims with related interest up to 31 December 1994, has been recorded to income and included in the statement of revenue and expenditure. ‘The payment of such amounts and related interest has not been effected,’ the report says.