Trade Facilitation Programme Development of Trade Finance in Tunisia. Kamola Makhmudova, Senior Banker, TFP 31 July 2018

Transcription

1 Trade Facilitation Programme Development of Trade Finance in Tunisia Kamola Makhmudova, Senior Banker, TFP 31 July 2018

2 Where we are 31 July,

3 What is the EBRD? Established in The EBRD is owned by 66 countries from five continents, as well as the European Union and the European Investment Bank. These shareholders have each made a capital contribution, which forms our core funding. Capital base of 30 billion The EBRD has a triple-a rating from all three main rating agencies (S&P, Moody s and Fitch) 9% 10% 9% 8% EU27 countries Includes European Community and European Investment Bank (EIB) each at 3%. Among other EU countries: France, Germany, Italy, and the UK each holds 8.6% 64% EBRD region Excluding EU, Russia at 4% USA Japan Other As at January July,

4 TFP Strategy Strong focus on: Small- and medium-sized private banks in the CIS and south-east Europe Early Transition Countries Southern and eastern Mediterranean (Greece, Cyprus, Egypt, Jordan, Morocco and Tunisia). New: Lebanon and the West Bank and Gaza Intra-regional trade (= trade between the EBRD s countries of operations) SMEs Co-financing with commercial banks 31 July,

5 EBRD Trade Facilitation Programme Annual Business Volumes July,

6 TFP: 1, 905 Transactions in 2017 Ranking No of Transactions by Country 1. Greece 2. Serbia 3. Ukraine 4. Cyprus 5. Belarus 6. Armenia 7. Georgia 8. Morocco 9. Turkey 10. Egypt 11. Mongolia 12. FYR Macedonia 13. Romania 14. Kyrgyz Republic 15. Bulgaria 16. Jordan 17. Moldova 18. Croatia 19. Tajikistan 20. Azerbaijan 21. Kosovo 22. Montenegro 23. Bosnia and Herzegovina 24. Tunisia 25. Turkmenistan 31 July,

7 TFP: Achievements More than 21,600 foreign trade transactions Total business volume EUR 15 billion 95 Issuing Banks in 27 countries Over 800 Confirming Banks worldwide 31 July,

8 800 Confirming Banks in 77 Countries 8

9 EBRD TFP: Top 10 Confirming Banks Ranked by number of transactions in Commerzbank 6. BANCA POPOLARE DI SONDRIO 2. ING Bank 7. KBC Bank 3. UNICREDIT BANK AUSTRIA 8. ODDO BHF Aktiengesellschaft 4. Citibank Europe 9. UBS AG 5. Deutsche Bank 10. INTESA SANPAOLO SPA 31 July,

10 TFP Application Area Facilitates financing of all stages of the trade chain 10

11 EBRD TFP Facilities Two main components Trade Facilitation Programme (EUR 1.5 bln framework) Trade Finance Guarantee Facility (fully operational since 1999) Trade Finance Cash Facility - Revolving Credit Agreement (RCA) (launched in 2000) 11

12 TFP How does it work TFP supports trading by providing: Guarantees that cover risks arising from trade finance transactions Short-term advances/financing to banks in the Countries of Operation for trade finance purposes Donor funded trade finance training and advisory services to local banks

13 TFP: Guarantee Structure and Application EBRD issues a Stand-By Letter of Credit covering the risks of Issuing Bank towards the Confirming bank Confirming Bank, Worldwide L/C Confirmation Seller L/C Issuance with request to confirm (L/G Issuance with counter-guarantee, other banking trade finance instruments) Issuing Bank, Country of Operations Application for L/C opening Buyer 13

14 TFP: Guarantee Transaction (1) Always involves a local bank ( Issuing Bank ) which issues a trade finance instrument (e.g. letter of credit) and a foreign bank which confirms it to the beneficiary ( Confirming Bank ); Issued only to Confirming Bank, not to exporters or importers; The trade finance instrument (e.g. a letter of credit) ensures that the beneficiary receives payment upon or after delivery.

15 TFP: Guarantee Transaction (2) Covers all types of trade finance instruments: documentary letters of credit (LCs), including deferred payment/postfinancing; bank payment guarantees; trade related standby LCs from issuing banks; bid and performance bonds; advanced payment guarantees; trade-related promissory notes or bills of exchange. EBRD Guarantee (a SBLC under UCP 600) is usually issued within 24 hours from application

16 TFP: Guarantee Transaction (3) Cover of exports, imports and distribution of imported goods in the EBRD s countries of operations, irrespective of the country of origin (no origin rule) Tenor: 3 years maximum Amount: no minimum amount EBRD pays on the claim within 15 days EBRD Guarantee covers up to 100% of the face value of the underlying trade finance instruments, covering payment, political and currency risks

17 EBRD TFP Guarantees: Case Study Import of olive oil processing equipment to Tunisia BANQUE TUNISO-KOWEITIENNE IMPORT OF OLIVE OIL PROCESSING EQUIPMENT FROM TURKEY TO TUNISIA BTK issued a Letter of Credit in favour of Turk Ekonomi Bankasi A.S., Istanbul, Turkey, also a partner bank, and participant of EBRD s Trade Facilitation Programme EBRD issued a guarantee in favour of Turk Ekonomi Bankasi A.S., Istanbul, Turkey 17

18 EBRD TFP Guarantees: Case Study Import of Samsung equipment to Tunisia AMEN BANK IMPORT OF SAMSUNG EQUIPMENT FROM MOROCCO TO TUNISIA Amen Bank issued a Letter of Credit in favour of Banque Centrale Populaire (BCP), Casablanca, Morocco, also a partner bank, and participant of EBRD s Trade Facilitation Programme in the SEMED (MENA) Region EBRD issued a guarantee in favour of BCP 18

19 TFP Benefits (1) For Issuing Banks and Customers Issuing Banks develop a track record with Confirming Banks (strong evidence that Confirming Banks follow EBRD s lead in establishing unsecured trade exposure limits to Issuing Banks) No cash collateral required from Issuing Banks, hence cheaper financing terms for exporters/importers Clients: more competitive exports and imports Issuing Banks: enhance competitiveness vis-à-vis other banks EBRD: reduce costs of transactions Additional opportunity of flexible financing through RCA for pre-export and post-import financing Assistance to Issuing Banks in structuring trade transactions through institutional building in the form of technical assistance 19

20 TFP Benefits (2) For Confirming Banks & Exporters Additional export business to EBRD countries of operation in Central & Eastern Europe CIS and SEMED countries with mitigated risks Business development Possibility to offer favourable credit terms to the customers, including longer tenors and larger amounts 20

21 Trade Finance Cash Facility Local Company Loan repayment Loan disbursement Local Bank (EBRD s borrower) Takes local company risk Borrows from EBRD On-lends to the local company Repayment to EBRD EBRD s disbursement EBRD Takes local bank risk and lends to the local bank against sub-borrower base 31 July,

22 TFP Factoring Case Study 31 July,

23 TFP: Our partner banks in Tunisia ISSUING BANKS 1. BTK 2. Amen Bank 3. UIB 4. UBCI 5. Banque de Tunisie 23

24 EBRD Capacity Building Projects Face-to-face learning Self-paced learning Online collaborative learning

25 EBRD Trade Finance e-learning Programme To date > 3,000 trade professionals from 240 institutions in 36 countries enrolled 31 July,

26 EBRD TFP e-learning Programme List of Courses Introduction to Trade Finance Introduction to Factoring Collections Mentor 600 DC Master ISP Master URDG Master Incoterms 2010 Environmental and Social Issues in Trade Target Audience Trade finance team Relationship managers Risk managers Legal team Operations team Other professionals interested in factoring products 26

27 EBRD TFP e-learning Programme in Tunisia 250 students registered 67 graduated Best students awarded prizes and sponsored trainings in leading European confirming banks and training companies: 27

28 NEW TRAINING FRAMEWORK 2018 EBRD compliance training for trade finance I. E-Learning Course II. ICA certification and ICA membership III. Individual advisory services for EBRD partner banks Correspondent banking technical assistance Know your client? Kill your client? OR

29 NEW TRAINING FRAMEWORK 2018 EBRD compliance training for trade finance 1/4 E-learning : Since 2010 EBRD offers wide range of Trade Finance E-learning programmes to partner banks. The programme was developed with the cooperation of International Chambers of Commerce (ICC). NEW: Trade Based Financial Crime Compliance training module covering GBP Financial Crime Regulation 2. The Compliance Programme 3. Exercising Due Diligence 4. Indicators of Trade Based Financial Crimes 5. Combating Financial Crime 31 July,

30 NEW TRAINING FRAMEWORK 2018 EBRD compliance training for trade finance 2/4 EBRD and International Compliance Association (ICA) to offer scholarships on Compliance Certification Courses. ICA Certification in KYC and CDD EUR ICA Specialist Certification in Trade Based Money Laundering EUR Target Audience Trade finance operations staff Trade finance relationship managers Trade finance risk managers Bank audit and compliance staff Bank management Lawyers working in compliance Further, the EBRD will support individuals to improve their existing knowledge still further by proving them access to comprehensive CPD, news and information as well as the global compliance community through professional membership of the International Compliance Association. 31 July,

31 NEW TRAINING FRAMEWORK 2018 EBRD compliance training for trade finance 3/4 ICA Certification in KYC and CDD: this training course provides a foundation knowledge of core know your customer (KYC) and customer due diligence (CDD) concepts, and introduction to CDD frameworks and an overview of the key components of working in the KYC environment. ICA Specialist Certification in Trade Based Money Loundering: Certificate in Trade Based Money Laundering provides staff with an opportunity to look at the AML and CTF models used to address the risks that exists within the international trade environment. The course will also investigate some of the practical issues faced, where breaching money laundering requirements can cost hundreds of millions of dollars. 31 July,

32 NEW TRAINING FRAMEWORK 2018 EBRD compliance training for trade finance 4/4 EBRD will offer individual correspondent banking advisory services to its partner banks as part of the Compliance Advisory Services Framework. The goal of the programme is to help partner banks to optimise and standardize KYC required documents and enhance their correspondent banking relationships with EBRD TFP networking platform of over 800 Confirming Banks. Customised Advisory Services Turn around CB DD and KYC Demystifying new Wolfsberg CB DDQ BAFT Respondents Playbook Internal Operational/System changes, training, revised requirements Assessment and implementation of appropriate timeline till July,

33 TFP Trade Exchange Magazine Launched in publications to date Dedicated to Trade Finance and EBRD Technical Assistance Projects 5,000 Readers from 1,000 Banks Reports on: News & Events Regional Focus Features In Depth sector Key Issues Trade Projects 31 July,

34 Contacts Trade Facilitation Programme European Bank for Reconstruction and Development One Exchange Square London EC2A 2JN United Kingdom Kamola Makhmudova Tel: Irina Tyan Tel: Web-site: Join us in social networks: Twitter: Facebook: LinkedIn: 34