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EBRD Trade Facilitation Programme (TFP) www.ebrd.com/tfp
 

EBRD Trade Facilitation Programme (TFP) www.ebrd.com/tfp

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    EBRD Trade Facilitation Programme (TFP) www.ebrd.com/tfp EBRD Trade Facilitation Programme (TFP) www.ebrd.com/tfp Document Transcript

    • ab0d c EBRD Trade Facilitation Programme (TFP) www.ebrd.com/tfp Rogers LeBaron Toronto 20 October 2004 TFP – The Concept (1) - 27 Countries Albania Armenia Azerbaijan Belarus Bosnia and Herzegovina Bulgaria Croatia Czech Republic Estonia Serbia & Montenegro FYR Macedonia Georgia Hungary Kazakhstan Kyrgyz Republic Latvia Lithuania Moldova Poland Romania Russian Federation Slovak Republic Slovenia Tajikistan Turkmenistan Ukraine Uzbekistan Resident Offices Regional Offices Headquarters
    • TFP - The Concept (2) EBRD supports trade by providing guarantees that cover risks arising from these trade finance transactions short-term advances/financing to banks in the Countries of Operation for trade finance purposes trade finance training and advisory service to banks TFP – Guarantee 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 that the exporter receives payment upon or after delivery EBRD Guarantee covers payment risks of the Issuing Bank to the Confirming Bank
    • Case Study: Export of Canadian Equipment to Russia An Canadian exporter sells agricultural equipment to Russia A Russian Issuing Bank under the TFP opens a confirmed Letter of Credit to an Canadian Confirming Bank, payable in several instalments before, at and after delivery EBRD guarantees payment of amounts or tenors which are not covered by Export Credit Agencies EBRD guarantees up to 100% of the political and commercial payment risk TFP - Guarantees Standby L/C (under UCP 500) Payable on first written demand Payable 15 days after receipt of demand Different from Export Credit Insurance
    • TFP - The Concept (3) TFP work through commercial banks Provides up to 100% guarantee on the transaction amount Covers both import and export transactions Covers both political and commercial payment risk Applicable for post-shipment and pre-export financing Additionality - Transition EBRD covers transactions which are not covered by other financial institutions or ECAs Issuing Banks come from low & intermediate transition countries Banks in advanced countries act as Confirming Banks (e.g. Poland, Hungary, Czech Republic) Graduation process: from Issuing to Confirming TFP is a tool for the market - used when needed EBRD creates markets in low transition countries
    • Intra-regional Deals Combine Harvesters- Russia to Kazakhstan Electricity - Russia to Georgia Construction- Macedonia to Bosnia Medical Equipment- Bulgaria to Macedonia Wheat- Kazakhstan to Russia Oil and jet fuel- Russia to Kazakhstan Cattle- Hungary to Croatia TFP - The Concept (4) Parties to the TFP (2004) Issuing Banks - 85 banks in 20 countries – Selected banks in EBRD countries of operation which meet the following criteria: Engaged in or developing trade finance operations Sound financial position and adequate operational procedures Preferably privately owned with strong shareholders Confirming banks - 507 confirming banks and subsidiaries in 66 countries
    • Types of Goods and Trade Finance Instruments All types of goods, commodities and equipment, except for EBRD’s general exclusion list and environmental exclusion list Facilitated by: – L/C, Stand by L/C and payment guarantees - – trade related promissory notes and bills of exchange - – bid, performance bonds, contract guarantees – construction guarantees, leasing guarantees – credit card and other payment guarantees Pricing Set on a deal by deal basis within established limits Depends on country, bank, tenor, import/export Russia 2.0 %- 3.0 % p.a. Ukraine 2.0 %- 4.0 % p.a. Central Asia 2.5 %- 4.0 % p.a. Balkans 2.5 %- 4.0 % p.a. Romania/Bulgaria 1.0 %- 3.0 % p.a. Advanced countries 0.5 % p.a.
    • Achievements to Date (1999 - 2004) Total number of guarantees issued: 2,900 – Cover L/C’s issued by 77 banks in 20 countries of EBRD’s Operation – and confirmed by 170 banks in 45 countries Total amount of trade transactions financed: EUR 1.6 billion Amount of total trade supported: EUR 2 billion – Confirming Banks shared app. 24 % of the portfolio risk Achievements to Date (1999 - 2004) Transaction size from EUR 10,000 to EUR 30 million Average deal size: EUR 0.6 million More than 50% of transactions are below EUR 100,000 Average guarantee tenor: 10 months … and no claims or losses
    • TFP Transactions p.a. 1999 – December 2003 1000 Volume, € mln 900 Number of Transactions 800 700 600 500 400 300 200 100 0 99 00 01 02 03 19 20 20 20 20 Transactions by Country of Importer (1999 - 2004) Country Total turnover (€mln) %By Country Russia 519.9 37.32% Kazakhstan 242.9 17.44% Uzbekistan 151.6 10.88% Ukraine 128.8 9.25% Macedonia 56 4.02% Azerbaijan 48.2 3.46% Belarus 45.3 3.25% Moldova 44.5 3.19% Georgia 40.7 2.92% Romania 36.6 2.63% Bosnia-Herzegovina 32.9 2.36% Serbia & Montenegro 23.9 1.72% Kyrgyz Republic 8.3 0.6% Bulgaria 6.8 0.49% Croatia 3.4 0.24% Other 3.3 0.24% Total 1,393 100%
    • Transactions by Country of Exporter (1999 - 2004) Germany 348 transactions- EUR 135 mln Italy 281 transactions- EUR 45 mln Turkey 241 transactions- EUR 18 mln Switzerland 190 transactions- EUR 142 mln Austria 143 transactions- EUR 47 mln France 117 transactions- EUR 33 mln Canada 16 transactions EUR 26 mln TFP – Canadian Beneficiaries - Examples Bombardier Aircraft Emery International Developments, Inc. SR Telecom Inc. International Grain Trade Hamtrade International Inc Greenvalley Equipment, Inc GN Plastics Company
    • Transactions covered for Canadian Exporters Examples Aircraft to Russia Telecommunication equipment to Macedonia Agricultural equipment to Russia Industrial production equipment to Russia Shipbuilding equipment to Ukraine Steel production equipment to Ukraine Meat and grain to Macedonia Vegetables to Romania TFP - Supporting SMEs (1999 – 2003) 54% of all transactions are below EUR 100,000 1400 1203 1200 1000 Number of 779 Transactions 800 600 400 195 200 30 0 <100,000 100,000 1 - 5 mln > 5 mln to 1 mln Amount in EURs
    • Confirming Banks Confirming Banks in Canada • Bank of Montreal • Canadian Imperial Bank of Commerce • HSBC Bank Canada • National Bank of Canada • Scotiabank • Societe Generale Canada • TD Bank Financial Group
    • Confirming Banks in Canada by No. of Transactions Canadian Imperial Bank of Commerce - 7 TD Bank Financial Group - 2 Societe Generale Canada - 2 Others – 5 TFP Users - Client Satisfaction with EBRD 60% 56% 50% 40% Average – 4.2 31% 30% 20% 13% 10% 0% 0% 0% 5 4 3 2 1 Q. Using a - p scale from 1 'poor' to 5 5 oint 'excellent', how would you rate your overall satisfaction with the products and services delivered by EBRD?
    • Achievements – Client Satisfaction Readers of Trade Finance magazine have voted the EBRD the Best Development Bank in Trade in 2003 and 2004 EBRD invites other development banks, commercial financial institutions and Export Credit Agencies to co- finance or co o - perate with EBRD TFP - Co-Financing with Confirming Banks % from total turnover 40 35 30 25 Rish sharing with 20 Confirming Banks 15 10 5 0 1999 2000 2001 2002 2003 2004
    • Risk Sharing (December 2003) On average 36%, but varies widely from 0% to 65% Direct Participation by Confirming Bank (EBRD Guarantee covers less than 100% of the risk) Direct Participation by Confirming Bank under EBRD Umbrella (A/B Guarantees) Participation by a third party bank (portfolio sales) Donor Risk Sharing Guarantee Funds (Balkans and other countries) TFP – Donor & TC Funds Donors support the TFP through contributions to Donor Risk Sharing Funds, sharing EBRD’s risk in South East Europe and Central Asia (including funds of Switzerland, Germany, Netherlands, Norway and Austria) Training of trade finance staff of banks in EBRD’s Countries of Operation (funds provided so far by Ireland, UK, France and Austria for training of 300 bankers from 65 banks in 15 countries) Trade Finance Advisory Services for banks in Russia, Ukraine, Central Asia and Caucasus (funds provided so far by Canada, the Netherlands, Austria and Ireland)
    • Instruction 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 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 Contacts Financial Institutions - Trade Facilitation Programme (TFP) European Bank for Reconstruction and Development One Exchange Square London EC2A 2JN United Kingdom Tel: +44 207 338 6813 (Yelena Tonna) +44 207 338 6476 (Rebecca Suknenko) Fax: +44 207 338 6119/7029 e-mail: TonnaY@ebrd.com SuknenkR@ebrd.com www.ebrd.com/tfp
    • www.ebrd.com/tfp Annual Meeting & Business Forum 2005 Good opportunity to: find out more about the EBRD and its countries of operations network with bankers, business people and government officials 22 2 May 2005 in Belgrade - 3 Parallel forum of debate and discussion on the investment climate in the region
    • TFP - Indicative Tenor List (1) Country Bank Tenor, days Albania ABA 180 Banca Italo Albanese 180 Armenia Anelik Bank LLC 180 Armimpex Bank 180 Armeconombank 180 Agricultural Cooperative Bank of Armenia 180 Azerbaijan IBA 2 years Azerdemiryolbank 180 UniBank (former Mbank) 180-360 Bank of Baku 180-360 Azerigasbank 180 Belarus Priorbank 2 years BVB 90 TFP - Indicative Tenor List (2) Country Bank Tenor, days Bosnia Raiffeisen Bank d.d. BiH 3 years UPI Banka d.d. 360 Zagrebacka Banka 180-360 Universal Banka 180 Bulgaria UBB 3 years Union Commercial Bank 360 Georgia TBC 2 years Bank of Georgia 2 years Tbiluniversal 180 United Georgian Bank 180 Kazakhstan Bank Turan Alem 2 years Halyk Savings Bank 2 years ATFBank 360 Kazcommerzbank 2 years Temirbank 360 Bank Center Credit 2 years
    • TFP - Indicative Tenor List (3) Country Bank Tenor, days Kyrgyz Rep. Demir Kyrgyz International Bank 180 Inexim Bank 180 Kyrgyz Investment and Credit Bank 360 JS Commercial Bank Kyrgyzstan 180 Latvia Rietumu Banka 360 Lithuania AGBank 360 Macedonia Komercijalna banka 360 Stopanska 360 Tutunska Banka 360 Export & Credit Bank 180 Moldova Victoria Bank 180 Agroindbank 180 Moldindconbank 180-360 Mobias Bank 180-360 Romania Banca Comerciala Robank SA 360 Banca Transilvania 360 Banc Post 360 TFP - Indicative Tenor List (4) Country Bank Tenor, days Russia VTB 3 years Sberbank 5 years West LB Vostok 360 IMB 3 years KMB-Bank (Small Business Credit Bank) 360 Chelindbank 2 years Petrocommerce Bank 360 Center-Invest Bank 2 years Uraltransbank 360 Asia-Invest Bank (Russia) 360 Probusinessbank 2 years Uralsib Bank 2 years Absolut Bank 360 TransCapitalBank 360 Serbia & Mont. Raiffeisenbank Jugoslavija 360 Eksimbanka 360 Euromarket Banka 180 HVB Jugoslavija 360
    • TFP - Indicative Tenor List (5) Country Bank Tenor, days Tajikistan Tajprombank 180 Ukraine FUIB 360 Forum Bank 360 AVAL Bank 2 years Nadra Bank 180 ING Ukraine 360 HVB Ukraine 3 years JSC Kredyt Bank 360 Raiffeisen Bank Ukraine 360 ProCredit Bank 360 Ukrsotsbank 360 Uzbekistan NBU 360 UzDaewoo 360 Asaka 360