FRAUD CASE IN CONSTANTA BRANCH

A new color in business Green Finance

Young Bankers Program August 2014Agenda:Romania Renewable Energy and Energy EfficiencyGreen ConceptProCredit Romania portfolio of clientsMarket researchProEco LoanMarketingConclusion

European Directive20-20-20Increase the share of consumed energy from renewable energy sources to 20% (RE);Improve energy efficiency with 20% (EE);Decrease with 20% the emissions of greenhouse gases (GGE), compared with 1990. (GM)

Renewable energy potential in Romania

SOLARWINDHIDROBIOMASSSource : Eurostat

The key indicator for quantifying the progress according to the Strategy Europe 2020 for sustainable growth.Renewable Energy

Energy EfficiencyThe Energetic strategy for 20072020 identifies a significant potential for energy efficiency in the following sectors:Industry13,0%;Households:41,5%;Transport:31,5%;Agriculture and other sectors: 14,0%.Source : Eurostat

Primary energy consumption Source : EurostatRomania has a large scale of resources of primary energy: fossil and mineral. In the future, a correlation between primary resources and potential (renewable) resources is desired, in order to have a cleaner and more efficient consumption.

Green Measures

Source : EurostatA reduction of GGE is observed up to year 2012. The trend for the next decade is that the process of reducing the GGE will continue, reaching a decrease of 20% compared with the actual moment. Portfolio analysis

8 branches 3 service points 347 credit files27 questionnaires

Files analysis

Loans portfolioMay-June

Activity sectors

PCB Employees

Competition

Mistery shoppingPhone callsInternet

Loans offered by EU funds:ROSEF (investment loans):BRDBT BCRUnicreditEEFF (CL):BRDBTBCRCECOTP BankRaiffeisenMarket researchBANKS PROMOTION WAYSLOAN VALUEGRANTPRODUCTANALYSISFINANCEPROCREDIT BANKFlyers, Internet Events10.000 -3.000.000 -CL + InvestmentIntern100%BRDInternetMax 1 mil 10 15 %CL + InvestmentExtern100%BANCA TRANSILVANIAInternetMax 1.000.000 15%CL+ InvestmentExtern80%RAIFFEISEN BANKInternetMax. 1.500.000 15%CLExtern-BCRInternetMax. 2.500.000 15%CLExtern100%CEC BANKInternet- -CLExtern-OTP BANKInternet--CLExtern-UNICREDITInternetMax. 1.000.000 10- 15%InvestmentExtern-

Green FinanceProCredit Bank launches new ProEco loan, aiming to finance both business and agro clients for the following investments:

Renewable energy

Energy efficiency

Green Measures

ProEco

Characteristics:Eligible clients: all clients fulfilling the eligibility criteria;Exposure: 10.000 - 3.000.000 EUR (equivalent lei);Maturity: max. 15 years;Grace period: max. 18 months;Destination: Investment and/or working capital (min. 70% of the loan value must be used for EE, RE and GR)Fixed interest rate: Fixed interest LEI (4.3%)Fixed interest EUR (3.44%)VSSMVSSM9.57.57.06.95.94.9

SWOT AnalysisStrengthsWeaknesses Flexible product; Adjustable reimbursement plan; Financing 100% of the project; Attractive interest rates; Complex technical analysis; High bureaucracy; Strict destination; Rigorous monitoring;OpportunitiesThreats Countrys energy potential; Underdeveloped technologic market; Reduced competition; Promoting new activity domains; Financing from EBRD + EU with grants; Competition; Reticence regarding green investments; Lack of information;

Ways for promoting

ConclusionsRomania has a huge potential for investments in energy efficiency;The other competitors are not yet focused on promoting green loans;Locations with the highest potential: Constanta, Bucuresti and Ploiesti.

We have the potential...We have the solution...

Lets make a change!