Sovereign Risk Insurance has formed a strategic business alliance with Banco Latinoamericano de Exportaciones - Bladex- aimed at expanding Bladex's country risk guarantee programme in Latin America and the Caribbean. The alliance provides for technical cooperation and risk sharing between the two companies.

Bladex is a multinational bank based in Panama that was established by the central banks of Latin American and Caribbean countries. Its shareholders include central and commercial banks in 23 countries in the region as well as international banks and private investors.

Sovereign specialises in political risk insurance and reinsurance and is a joint venture between ACE and XL. With this alliance Bladex's country risk guarantee programme will be enhanced by enabling it to offer clients greatly expanded tenors as well as protection against a broader selection of political risks, including expropriation and war/political violence.

Jose Castaneda, president and chief executive officer of Bladex, said, ``We are delighted to be working with Sovereign as they are one of the world's leading political risk insurers and have the experience and financial strength to significantly augment our programme by adding a more diverse range of coverage options as well as providing longer term coverage.

"These new guarantee capabilities will fortify Bladex's objective to support the development of Latin America and the Caribbean, and to provide integrated solutions for the promotion of the region's exports."

Price Lowenstein, president and chief executive officer of Sovereign, said he is very pleased to be working with Bladex. "Bladex is a unique and highly respected financial institution in the region, and we believe that this is a significant milestone in both our organisations' efforts to better serve the needs of banks and other financial institutions and corporations doing business in Latin America and the Caribbean."