Crisis ResponseTrade Facilitation Programme (TFP)

Facilitating trade between Portugal and EBRD countries of operationExamples of Portuguese exports financed under the programme

Co-financing of the EBRD and banks in Portugal How can Portuguese exporters use the programme?

Rudolf PutzHead Trade Facilitation Programme(all figures as of 31 December 2011)

What is the EBRD?What is the EBRD?

2428323640

048

12162024

'00 '01 '02 '03 '04 '05 '06 '07 '08Cumulative commitments

€38.2 billionUnaudited May 2008

Export Production Transport Storage & distribution

Receivables

EBRD Trade Facilitation Programme (TFP)EBRD Trade Facilitation Programme (TFP)

Facilitates financing of all stages of the trade ch ain

Export Production Transportdistribution

TFP TFP –– How does it work?How does it work?

EBRD supports trade by providing

� guarantees that cover risks arising from trade

finance transactions

� cash advances/financing to banks in EBRD

Countries of Operation for trade finance purposes

� donor funded trade finance training and advisory

service to local banks

TFP TFP –– Guarantee TransactionGuarantee Transaction

� Always involves a local bank (“Issuing Bank”) which issues a trade finance instrument (e.g. a letter of credit) and a foreign bank which confirms it to the exporter (“Confirming Bank”)

The trade finance instrument (e.g. L/C) ensures � The trade finance instrument (e.g. L/C) ensures that the exporter receives payment upon or after delivery

� EBRD Guarantee covers payment risks of the Issuing Bank to the Confirming Bank

Case Study Case Study –– Exports from Portugal to BelarusExports from Portugal to Belarus

� A Portuguese exporter sellsolive oil, wine vinegar to an importer in Minsk, Belarus

� Belvnesheconombank Minsk, Belarus issues a letter Minsk, Belarus issues a letter of credit, confirmed by a bank in Portugal

� EBRD guarantees up to 100% of the political and commercial payment risk

Case Study: Exports from Portugal to Case Study: Exports from Portugal to FYR MacedoniaFYR Macedonia

� A Portuguese exporter sells a brake system for railway freight wagons to an importer in Skopje, FYR Macedonia

� NLB Tutunska Banka A.D.,FYR Macedonia issues a FYR Macedonia issues a counter guarantee, confirmed by a bank in Portugal

� EBRD guarantees up to 100% of the political and commercial payment risk

Transactions by Country of Exporter (1999 Transactions by Country of Exporter (1999 -- 2012)2012)

1.Germany 1,646 transactions - EUR 923 mln2.Italy 1,157 transactions EUR 218 mln3.Turkey 1,094 transactions EUR 113 mln4.Switzerland 666 transactions - EUR 477 mln5.Austria 422 transactions - EUR 153 mln6.UK 391 transactions - EUR 314 mln7.Netherland 385 transactions - EUR 203 mlnFrance 379 transactions - EUR 178 mln8.France 379 transactions - EUR 178 mln

9.Spain 360 transactions EUR 88 mln10.USA 359 transactions - EUR 278 mln11.Russia 319 transactions - EUR 182 mln12.Korea 298 transactions - EUR 310 mln13.China 293 transactions - EUR 78 mln14.Belgium 227 transactions - EUR 54 mln15.Estonia 135 transactions - EUR 32 mln

……….. …………………………………Portugal 26 transactions – EUR 15 mln

TFP TFP ––Transactions for Portuguese Exporters and ImportersTransactions for Portuguese Exporters and Importers

� Examples:

� Export of olive oil, wine and vinegar oil to Belarus

� Export of metals to Belarus

� Export of frozen chicken meat to Georgia

Export of fruit juices to Kazakhstan� Export of fruit juices to Kazakhstan

� Export of packing material to Romania

� Export of railway equipment to Macedonia

� Import of grain from Kazakhstan

TFP TFP -- Transactions covered for Italian exportersTransactions covered for Italian exporters

Examples� Furniture to Kazakhstan, Armenia and Serbia

� Foodstuff to Serbia, Bosnia

� Textiles and shoes to Macedonia, Ukraine, Russia

� Steel production equipment to Russia

� Bottling equipment to Moldova and Georgia

� Food production equipment to Ukraine and Russia

� Textile production equipment to Russia and Uzbekistan

� Packing machinery to Ukraine

� Air conditioning and cooling equipment to Bosnia

TFP TFP –– Portuguese Confirming Banks which have already used the TFPPortuguese Confirming Banks which have already used the TFP

� Banco Comercial Português SA (Millenium BCP)

� Banco Espirito Santo, S.A.

TFP TFP -- The Concept (1)The Concept (1)

� TFP work through commercial banks

� Provides up to 100% guarantee on the transaction amount

� Covers both import and export transactions� Covers both import and export transactions

� Covers both political and commercial payment risk

� Applicable for post-shipment and pre-export financing

TFP TFP -- The Concept (2)The Concept (2)

� Issuing Banks - 102 banks in 19 countries

Selected banks in EBRD countries of operation which meet the following criteria:

� Engaged in or developing trade finance operations

Parties to the TFP

� Engaged in or developing trade finance operations

� Sound financial position and adequate operational procedures

� Preferably privately owned with strong shareholders

� Confirming banks – over 800 confirming banks and subsidiaries in 77 countries

800 Confirming Banks in 77 Countries800 Confirming Banks in 77 Countries

EBRD TFP EBRD TFP –– 10 Confirming Banks in Portugal10 Confirming Banks in Portugal

Banco BPI S.A.Banco Comercial Português SA (Millenium BCP)Banco Efisa SABanco Espirito Santo, S.A.Banco Finantia, S.A. Banco Finantia, S.A. Banco Sabadell S.A., LisbonBanif – Banco Internacional do Funchal SABBVA Portugal S.A.BPN Banco Portugues de NegociosCaixa Geral de Depósitos SA

12 years of EBRD Trade Facilitation Programme (TFP) 12 years of EBRD Trade Facilitation Programme (TFP) Business Volumes p.a. 1999 Business Volumes p.a. 1999 –– 20122012

800

1000

1200

Volume, € mln

0

200

400

600

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

e

� Total number of transactions financed: 13,100

– cover L/C’s issued by 109 banks in 21 countries of EBRD’s Operation

– confirmed by 250 banks in 53 countries

– Supporting exporters in 71 countries

Achievements to Date (1999 Achievements to Date (1999 –– November 2012) November 2012)

– Supporting exporters in 71 countries

� Amount of trade facilitated: EUR 8.1 billion

– Confirming Banks shared app. 24 % of the portfolio risk

� Number of claims received: 2

� Number of claims paid: 2

EBRD TFP EBRD TFP –– Top 20 Confirming Banks ranked by Top 20 Confirming Banks ranked by Number of Transactions in 2011 Number of Transactions in 2011

1. Commerzbank

2. UBS

3. UniCredit Bank

4. Deutsche Bank

5. Bank Hapoalim

11. ING Bank

12. BHF Bank

13. Turkiye Is Bankasi

14. Banco de Sabadell

15. Standard Chartered Bank

6. KBC Bank

7. RZB

8. Intesa Sanpaolo

9. HSBC Bank

10. JP Morgan Chase Bank

16. Yapi ve Kredi Bankasi

17. BNP Paribas

18. Banca Popolare Em.Rom.

19. LBBW

20. Banca Nazionale del Lavoro

TFP TFP -- Supporting SMEs (2011)Supporting SMEs (2011)

616

759

600

700

800

1,616 transactions in 2011 85% of all transactions are below EUR 1mln

200

41

0

100

200

300

400

500

600

Number of Transactions

<100,000 0.1 - 1 mln 1 - 5 mln > 5 mlnAmount in EURs

EBRD TFP EBRD TFP –– 1,616 Transactions in 20111,616 Transactions in 20111. Belarus (381)2. Russia (300)3. Georgia (277)4. Ukraine (144)5. Armenia (141)6. Kazakhstan (117)7. Azerbaijan (80)Azerbaijan (80)8. Moldova (64)9. Macedonia (63)10. Bosnia Hercegovina (14)11. Serbia (13)12. Tajikistan (9)13. Croatia (5)14. Turkmenistan (4)15. Kyrgyz Republic (2)16. Mongolia (2)

Different from/complementary to export credit insurance:

� Stand-by letters of credit (L/C) (under UCP 600)

� usually issued within 24 hours

� Cover all types of trade finance instruments issued by EBRD client banks: letters of credit, including deferred payment/post-financing; bank payment guarantees; bid bonds, performance bonds; advanced payment guarantees; stand-by L/Cs, etc.

TFP TFP -- GuaranteesGuarantees

� Issued only to Confirming Banks, not to exporters or importers

� Payable 15 days after receipt of first written demand

� Cover up to 100% of the commercial and political ri sk which cannot be covered by commercial banks, commercial credit insu rance or exports credit agencies

� Cover exports, imports and distribution of imported goods in EBRD countries of operation, irrespective of the country of origin (no origin rules)

� Tenor: max. 3 years

� Amounts: no minimum amount

� Set on a deal by deal basis within established limits

� Depends on country, bank, tenor, import/export

Russia 2.0 % - 6.0 % p.a.

Belarus 3.0 % - 7.0 % p.a.

EBRD TFP Pricing charged to Issuing/Confirming BanksEBRD TFP Pricing charged to Issuing/Confirming Banks

Belarus 3.0 % - 7.0 % p.a.

Ukraine 2.5 % - 7.0 % p.a.

Central Asia 2.5 % - 7.0 % p.a.

Balkans 1.5 % - 3.75 % p.a.

Advanced countries 1.00 % - 1.5 % p.a.

Eastern Europe & CIS & SEMEDEastern Europe & CIS & SEMEDReasons for the reduced availability of trade financeReasons for the reduced availability of trade finance

� Less risk taking capacity and liquidity available for trade finance in local Issuing Banks and foreign Confirming Banks, export credit agencies, private insurance underwriters and investment funds

� Lower demand for trade finance, due to

– lower commodity prices– lower commodity prices

– lower export revenues

– devaluation of local currencies

– slowdown of economic growth, resulting in lower demand for imported goods

Liquidity Crisis Liquidity Crisis –– EBRD’s ResponseEBRD’s Response

� Increase the TFP Programme limit from currently EUR 800 million to EUR 1.5 bn

� Increase existing TFP facilities

� Increase number of Issuing Banks

� Guarantee also deferred payment L/Cs, L/Cs with post -financing � Guarantee also deferred payment L/Cs, L/Cs with post -financing and advanced payment guarantees

� Provide liquidity also in form of cash facilities to Issuing Banks for trade finance transactions which cannot be funded by foreign commercial banks or export credit agencies (e.g. post-financing for import of capital goods, local distribution of impo rted goods, pre-export finance, trade between EBRD countries of ope ration, factoring )

EBRD EBRD –– Best Development Bank in Trade Best Development Bank in Trade

� Readers of Trade Finance Magazine and Trade & Forfaiting Review have voted the EBRD in 2011 “Best Development Bank in Trade in Eastern Europe and the CIS”CIS”

� EBRD invites other development banks, commercial financial institutions, export credit agencies and donors to co-finance or co-finance with the EBRD

EBRD TFP EBRD TFP -- CoCo--Financing PartnersFinancing Partners

� ACE Global Markets (AGM) & Lloyd´s of London

� Confirming Banks

� Donor Risk Sharing Funds

� Export Credit Agencies

� FMO Netherlands

� OPEC Fund for International Development

� Private Investment Funds

Global Network of Trade FacilitationGlobal Network of Trade FacilitationIFI EBRD IFC IDB ADB

Programme Name TFP GTFP TFFP TFFP

Countries of Operation Eastern EuropeCIS Countries

worldwide Latin America Asia

Website www.ebrd.com/tfp www.ifc.org/gtfp www.iadb.org www.adb.org

Programme started in 1999 2005 2005 2004

Number Transactions since start 11,600 11,255 1,966 4,236

Trade facilitated since start $ 9.5 bn $ 15.8 bn $ 2 bn $ 8.8

Number of Issuing Banks 115 146 51 59

Number of Confirming Banks 658 800 264 112

Countries covered 20 91 20 16

Crisis Response of MultilateralsCrisis Response of Multilaterals

� Global network of regional Trade Facilitation Programmes throughout the developing world, run by regional development banks: EBRD, ADB, IADB, IFC

� Increase trade by increasing trade finance permutations

� Leverage/increase trade volume by co-financing with � Leverage/increase trade volume by co-financing with commercial banks, insurance underwriters, investmen t funds and other development banks

� Established structure provides a mechanism for quick response to financial crisis

TFP TFP –– CoCo--Financing Structures (1)Financing Structures (1)

� Direct risk sharing with Confirming Banks

EBRD covers only part of transaction, e.g. instalments with longer tenors

� Risk Sharing with Confirming Bank - A/B Structure

- EBRD guarantees whole amount to the Confirming Bank - EBRD guarantees whole amount to the Confirming Bank (CB)

- CB takes risk participation by counter guarantee to EBRD; EBRD transfers preferred creditor status to CB

� Co-Financing with Export Credit Agencies

EBRD guarantees amounts and tenors which are not covered by Export Credit Agencies

TFP TFP –– CoCo--Financing Structures (2)Financing Structures (2)

� Risk Participation Sales of Portfolio

Other development banks, development agencies and private insurance underwriters share part of EBRD’s risk under the whole portfolio of outstanding TFP transactions with selected Issuing Banks:

– Pro-rata (FMO Netherlands and OFID share risk in EBRD’s portfolio of TFP transactions with selected banks in Azerbaijan, Belarus, Georgia, Kazakhstan, Moldova, Russia, Tajikistan and Ukraine)

– First Loss for EBRD (ACE & Lloyd’s )

NEW EBRD COUNTRIES: NEW EBRD COUNTRIES: Egypt, Jordan, Morocco and TunisiaEgypt, Jordan, Morocco and Tunisia

� EGYPT, JORDAN, MOROCCO AND TUNISIANEW EBRD COUNTRIES OF OPERATION

� EBRD’s TFP WILL EXPAND ITS COVERAGE TO THIS REGION AND ACCEPT ISSUING BANKSFROM ITS NEW

� EGYPT TFP LAUNCH TOOK PLACE ON 23 APRIL 2012AND WAS ATTENDED BY 80 TRADE FINANCE AND CENTRAL BANK SPECIALISTS.

� JORDAN TFP LAUNCH TOOK PLACE ON 29 MAY 2012 IN AMMANFROM ITS NEW

COUNTRIES

� EBRD WILL EXTEND TECHNICAL ASSISTANCEAND NETWORKING EVENTS TO NEW PROGRAMME MEMBERS

� TFP EVENTS CALENDARARE ANNOUNCED REGULARLY ON THE TFP WEBSITE AND “TRADE EXCHANGE” MAGAZINE

AMMAN

� MOROCCO TFP LAUNCH TOOK PLACE ON 11 SEPTEMBER 2012 IN CASABLACA

� TUNISIA TFP LAUNCH TOOK PLACE ON 10 OCTOBER 2012 IN TUNIS

Welcome to INVESTBANK , JordanWelcome to INVESTBANK , Jordan

� New TFP facility for INVESTBANK , a commercial bank operating in Jordan , signing 30 September 2012

� An uncommitted multi-currency trade finance limit of US$ 30M for finance limit of US$ 30M for guarantees with tenors of up to 3 years and 5 years for intra-regional trade

� Technical co-operation to include workshops, and places on the Trade Finance e-Learning Programme, accredited by ICC

EBRD TFP EBRD TFP -- Instruction for Exporters & ImportersInstruction for Exporters & Importers

� Check under www.ebrd.com/tfp , for which Issuing Banks and which tenors EBRD may guarantee the payment;

� Ask your buyers/suppliers to check if an Issuing � Ask your buyers/suppliers to check if an Issuing Bank under the TFP would be ready to issue the required trade finance instrument;

� Ask a Confirming Bank of your choice to confirm the payment instrument under the guarantee of EBRD

www.ebrd.com/tfpwww.ebrd.com/tfp

TFP Trade Exchange Magazine: www.ebrd.com/tfpTFP Trade Exchange Magazine: www.ebrd.com/tfp

� TRADE EXCHANGE TFP MAGAZINE LAUNCHED IN 2011

� EBRD PUBLICATION DEDICATED TO TRADE FINANCE AND EBRD TECHNICAL ASSISTANCE PROJECTS

� 5,000 READERS FROM 1,000 BANKS

REPORTS ON:

� NEWS AND EVENTS

� REGIONAL FOCUS FEATURES

� INDEPTH SECTOR KEY ISSUES

� TRADE PROJECTS

SPONSORS of TFP Networking Event for Banks in SPONSORS of TFP Networking Event for Banks in May 2012 in LondonMay 2012 in London

TFP Networking Events for Banks in 2013TFP Networking Events for Banks in 2013

TFP Trade Finance Forum 2013 London

ContactsContacts

European Bank for Reconstruction and DevelopmentOne Exchange SquareLondon EC2A 2JNUnited Kingdom

Financial Institutions - Trade Facilitation Programm e (TFP)

United KingdomTel: +44 207 338 6476 (Rebecca Suknenko)

+44 207 338 7762 (Mirjana Zalar)Fax: +44 207 338 6119/7029e-mail: zalarm@ebrd.com , suknenkr@ebrd.com

www.ebrd.com/tfp

TFP TFP -- Indicative Tenor List (1)Indicative Tenor List (1)Country Bank Tenor, days

Armenia ACBA - Credit Agricole Bank 560

Ameriabank CJSC 2 years

Anelik Bank LLC 2 years

Araratbank OJSC 1 year

Armeconombank 560

Armswissbank 2 years

Inecobank CJSC 2 years

VTB Bank Armenia 560

Azerbaijan

Accessbank Closed Joint Stock Co 2 years

Bank of Baku 560

Respublika OJSC 3 years

Azerigasbank 560

Muganbank OJSS 395

OJSC Demirbank 560

Unibank Commercial Bank 2 years

Belarus

Belgazprombank 5 years

Belvnesheconombank Minsk 5 years

JSC Bank Belrosbank 3 years

Priorbank 3 years

CJSC Minsk Transit Bank 2 years

OJSC Belarusky Narodny Bank 1 year

BPS-Bank 5 years

Priorbank Minsk 3 years

Reconversion And Development Bank 2 years

TFP TFP -- Indicative Tenor List (2)Indicative Tenor List (2)Country Bank Tenor, days

Bosnia And Herzegovina Intesa Sanpaolo Banka D.D. Bosnia 1 year

Raiffeisen Bank D.D. BiH 3 years

Croatia

PRIVREDNA BANKA ZAGREB 3 years

RAIFFEISENBANK AUSTRIA ZAGREB 3 years

FYR Macedonia

Komercijalna Banka Skopje 470

NLB Tutunska Banka A.D. 470

Procredit Bank Macedonia 1 year

Stopanska Banka Skopje 1 yearStopanska Banka Skopje 1 year

Sparkasse Bank Macedonia 1 year

Georgia

Bank of Georgia 3 years

Bank Republic 3 years

Basis Bank 1 year

Cartu Bank 3 years

JSC VTB Bank Georgia 3 years

TBC Bank 3 years

Jordan

Invest Bank 3 years

Kazakhstan

JSC Bank Centercredit 5 years

Kazkommertsbank 5 years

SB SBERBANK JSC 5 years

VTB Bank Kazakhstan Subsidiary JSC 2 years

TFP TFP -- Indicative Tenor List (3)Indicative Tenor List (3)Country Bank Tenor, days

Kyrgyz Rep.

Demir Kyrgyz International Bank 5 years

JSC Kyrgyzstan Bank 195

Kyrgyz Investment and Commercial Bank 1 year

Kazkommertsbank Kyrgyztan 1 year

Latvia

Joint Stock Company Citadele Banka 1 year

Lithuania

Ab Bankas Nord/LB 1 year

Moldova

B.C. Banca Sociala S.A. 2 years

B.C. Moldova-Agroindbank S.A. 1 year

Moldindconbank SA 1 year

Mobias Bank 2 years

Mongolia

Khan Bank 2 years

XAC Bank LLC 2 years

Russia

Absolut Bank 3 years

ASIAN-PACIFIC BANK OJSC RUSSIA 2 years

Bank St Petersburg OJSC 3 years

Bank Vozrozhdenie 3 years

Bank BCC-Moscow 1 year

Bank WestLB Vostok ZAO 1 year

Chelind Bank 3 years

TFP TFP -- Indicative Tenor List (4)Indicative Tenor List (4)Country Bank Tenor, days

Russia

(countined) CJSC Unicredit Bank Moscow 3 years

Credit Bank Of Moscow 3 years

ICICI Bank Eurasia LLC 3 years

Joint-Stock Bank "Master-Bank" 2 years

JSC "Bank Kazansky" 1 year

JSC Bystrobank 560

JSC Commercial Bank " Center Invest 3 years

JSC Rosbank 5 years

Joint Stock Russian Standard Bank 2 years

JSC VTB BANK 5 years

Joint Stock Bank Transcapitalbank 3 years

Locko Bank "LB" Moscow 3 years

MDM Bank, Open Joint Stock Company 3 years

NBD Bank Nizhni Novgorod 3 years

OJSC Rosevrobank 3 years

Promsvyazbank 5 years

Sberbank Moscow 5 years

SKB-BANKA 2 years

Spurtbank Kazan 560

Ural Siberian Bank 3 years

Uraltransbank 1 year

ZAO Raiffeisenbank 5 years

TFP TFP -- Indicative Tenor List (5)Indicative Tenor List (5)Country Bank Tenor, days

Romania Banca Transilvania CLUJ 1 year

Serbia

Alpha bank srbija a.D. 1 year

Banka per Biznes Kosovo 1 year

Cacanska Banka 2 years

Eurobank EFG ad Beograd 1 year

Komercijalna Banka AD, Beograd 1 year

Raiffeisenbank A.D. 1 year

Tajikistan

Agroinvestbank 1 year

Bank Eskhata 1 year

State Savings Bank Of The Republic 1 year

Tojiksodirot Bank Open Joint-Stock 560

Turkmenistan

Senagat Bank 540

Ukraine

JSC "Kredobank" 2 years

Megabank OJSC 1 year

JSC Bank Forum 3 years

OTP Bank 3 years

ProCredit Bank 1 year

VTB BANK 3 years

Raiffeisen Bank Aval 5 years

State Export-Import Bank Of Ukraine 5 years

Subsidiary Bank Sberbank of Russia 2 years

Unicredit Bank, Ukraine 5 years