Demonstrating Positive Effects of EBRD s Trade Facilitation Programme in the Region

Transcription

1 WTO Public Forum 2014 Demonstrating Positive Effects of EBRD s Trade Facilitation Programme in the Region Marco Nindl Geneva, 1 October 2014

2 What is the EBRD? International financial institution, promotes transition to market economies in 34 countries from central Europe to central Asia In 2011, the Bank expanded its operations to include Egypt, Morocco, Tunisia, and Jordan (Southern and Eastern Mediterranean SEMED region) Owned by 64 countries and two inter-governmental institutions Capital base of 30 billion Cumulative commitments of 86bn

3 Where we invest 2 October, 2014 European Bank for Reconstruction and Development

4 EBRD TFP The Strategy Strong focus on Small- and medium-sized private banks in the CIS and South-East Europe Early Transition Countries Southern and Eastern Mediterranean (SEMED) Intra-regional trade (= trade between EBRD countries of operation) Foreign trade transactions of SMEs Co-financing with the private sector

5 TFP How does it work? EBRD supports trade by providing: Guarantees that cover risks arising from trade finance transactions in favour of Confirming Banks TFP guarantee agreements are signed with local issuing banks (IBA) plus agreement with confirming banks (CBA) all over the world Currently: 104 Issuing banks and over 800 Confirming banks Short-term advances/financing to banks in the Countries of Operation for trade finance purposes TFP Revolving Credit Agreements are signed with local banks (RCA) TC funded trade finance training and advisory service to service local banks

6 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

7 TFP: 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 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 Seller SALES-PURCHASE AGREEMENT Buyer

8 Case Study: 2013 Deal of the Year Ucom LLC is a telecommunication company, founded in Armenia in 2007 In 2013 they imported optical cables from Romania Ameriabank opened a letter of credit with post-financing in the total amount of USD_901, confirmed by Commerzbank

9 Case Study: 2013 Deal of the Year This transaction was part of a larger project that is aimed at setting up the largest new generation fibre-optic network in Armenia With this transaction, the EBRD supported intra-regional trade between Armenia and Romania The tenor of the underlying transaction was for a total of three years, a tenor that would not have been possible without the support of the EBRD EBRD guaranteed 100% of the political and commercial payment risk. Dutch Development Bank FMO shared part of the risk.

10 TFP Exports from Austria to Georgia Doppelmayr Seilbahnen, Austria sells mono-cable gondola equipment to Tbilisi Park, Georgia Bank of Georgia opens a letter of credit, confirmed by UBS, Switzerland The EBRD guarantees 100% of the political and commercial payment risk

11 TFP Deal of the Year 2010 NBD Bank Dener Makina, Turkey sold plasma cutting and press brakes machines to Ruskomtrans Ltd, Balakhna, Russia NBD Bank, Russia opened a Letter of Credit confirmed by Commerzbank, Germany payable in several instalments before, at and after delivery with post-financing EBRD guaranteed payment of Letter of Credit to Commerzbank (risk shared 60 to 40 percent)

12 TFP Deal of the Year 2010 Supporting local SMEs Ruskomtrans Ltd established in 1996 in Nizhniy Novgorod region with 100 employees producing chassis and vehicle steel shells for various transportation needs Newly purchased machinery allows higher assortment of offered products and helped to increased profitability by 70 percent

13 Business Volumes p.a ,400. Volume, million 1,200. 1,

14 TFP - Supporting SMEs 2,033 transactions in % of all transactions are below EUR 1mln Number of TFP Transactions by transaction value, EUR millions < 100, mln 1-5m >5m 38

15 Trade Finance Training & Advisory Projects 2012 & 2013 Topics: Trade Finance Practices Advanced and Structured Trade Finance Factoring UCP 600 Fraud Prevention Correspondent Banking Restructuring Trade Finance Deals Legal Proceedings in connection with defaulted trade finance transactions e-learning Projects were generously sponsored by Taipei China, Switzerland, Italy, the Netherlands, New Norway Cooperation Fund, Western Balkans Fund, Early Transition Country Fund, Special Share-holder Fund of EBRD.

16 EBRD: Capacity Building Projects EBRD Blended Learning Solution

17 TFP TC Funded Trade Finance Consulting ING IGA - Chelindbank, Chelyabinsk (Russia)

18 EBRD Guarantees Exports from Italy to Russia Dolce and Gabbana Italy sells clothing to an importer in Chelyabinsk, Russia Chelindbank Russia issues a payment guarantee, confirmed by BNL Italy EBRD guarantees to BNL Italy up to 100% of the political and commercial payment risk

19 TFP Italian clothes in Chelyabinsk, Russia Without your help these goods would never reach our city and our women will never be able to wear them Thank you for co-operation. Best regards, Tatiana Skurlatova Chelindbank Chelyabinsk

20 EBRD TFP: Capacity Building Projects Trade Finance Training Courses

21 EBRD E-Learning Programme The ICC s technology partner Coastline Solutions has assisted EBRD to develop an online training programme, incorporating ICC content on rules and operations in trade finance; Project funded by the EBRD s special shareholder s fund and offered free of charge to Issuing Banks in EBRD s countries of operations. To date over 300 trade professionals from over 80 banks in 21 countries have enrolled.

22 EBRD Trade Finance e-learning Programme

23 EBRD ICC e-learning Programme Best students receive further scholarships and sponsored training programmes in leading European confirming banks and training companies: Commerzbank, Germany ICC PARIS ICC Vienna Banca Popolare di Sondrio, Italy BHF-Bank, Germany

24 What our students say...

25 TFP Trade Exchange Magazine: 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

26 Best Development Bank in Trade Readers of Trade & Forfaiting Review (TFR), Global Trade Review (GTR) and Trade Finance Magazine have voted the EBRD in 2012 and 2013 Best Development Bank in Trade EBRD invites other development banks, commercial financial institutions, export credit agencies and donors to co-finance or co-finance with the EBRD

27