ebrd trade facilitation programme (tfp)
TRANSCRIPT
EBRDEBRDTrade Facilitation Programme (TFP)Trade Facilitation Programme (TFP)
Czech-Asian Forum Czech-Asian Forum (March 2(March 2ndnd, 2009 Prague), 2009 Prague)
Export Production Transport Storage & distribution
Receivables
EBRD Trade Facilitation Programme (TFP)EBRD Trade Facilitation Programme (TFP)
Facilitates financing of all stages of the trade chain
Trade Facilitation Programme (TFP)Trade Facilitation Programme (TFP)
Objectives
Foster trade, both inter- and intra-regional
Help local banks create track records with international banks
Provide liquidity to the trade finance system
Support the development of factoring services provided by banks and factoring companies
Strengthen the trade finance capabilities of local banks
TFP – Two Main ComponentsTFP – Two Main Components
Trade Facilitation Programme(EUR 1.5 billion framework)
Trade Finance Guarantee Facility
(fully operational since 1999)
Trade Finance Cash Facility
(launched in 2000)
All types of goods, commodities and equipment, except for EBRD’s general exclusion list and environmental exclusion list
Facilitated by:– L/C, SBLC 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
Types of Goods and Trade Finance InstrumentsTypes of Goods and Trade Finance Instruments
PRE-EXPORT AND WORKING CAPITAL FINANCEPRE-EXPORT AND WORKING CAPITAL FINANCE
Local Company
Local Bank (EBRD’s borrower)
•Takes local company risk
•Borrows from EBRD
•On-lends to the local company
EBRD
•Takes local bank risk
•Lends to the local bank against sub-loan reports
Repayment to EBRD EBRD’s disbursement
Loan repayment Loan disbursement
10 years of TFP10 years of TFPBusiness Volumes p.a. 1999 - 2008Business Volumes p.a. 1999 - 2008
0
100
200
300
400
500
600
700
800
900
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Volume, € mln
774 Confirming Banks in 78 Countries774 Confirming Banks in 78 Countries
Including 23 out of the world’s top 25 banks by total assets
Case Study: Export of Ethiopian Coffee to ArmeniaCase Study: Export of Ethiopian Coffee to Armenia
An Ethiopian exporter sells coffee to Armenia
Armeconombank opens a confirmed Letter of Credit in favour of the Ethiopian exporter
EBRD guarantees 100% of the political and commercial payment risk
Case Study: Export of wine from MoldovaCase Study: Export of wine from Moldova
A Moldovan wine producer requires pre-export finance for purchase of agro-chemicals and equipment and export of wine to Russia
EBRD grants a loan to a Moldovan bank which the bank can use to fund a loan to the Moldovan exporter (amount EUD 170,000, tenor 8 months)
EBRD’s Crisis ResponseEBRD’s Crisis Response
Increase the TFP Programme limit from currently EUR 800 million to EUR 1.5 billion
Increase existing TFP facilities
Guarantee also deferred payments 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 imported goods, pre0export finance, trade between EBRD countries of operation, factoring)
TFP Achievements – Client SatisfactionTFP Achievements – Client Satisfaction
Readers of Trade Finance Magazine and editors of Trade & Forfaiting Review have voted the EBRD “Best Development Bank in Trade” in 2003, 2004, 2005, 2006 and 2007
EBRD invites other development banks, commercial financial institutions, export credit agencies and donors to co-finance or co-finance with the EBRD
The FutureThe Future Network of regional Trade Facilitation
Programmes throughout the developing world, run by regional development banks like EBRD, ADB, IADB, IFC, FMO, DEG
Increase trade by increasing trade finance permutations
Leverage/increase trade volume by co-financing with commercial banks
Established structure provides a mechanism for quick response to financial crisis
ContactsContacts
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
United Kingdom
Tel: +44 207 338 6476 (Rebecca Suknenko)
+44 207 338 7762 (Mirjana Zalar)
+44 207 338 6813 (Yelena Tonna)
Fax: +44 207 338 6119/7029
e-mail: [email protected] , [email protected], [email protected]
www.ebrd.com/tfp
Financial Institutions - Trade Facilitation Programme (TFP)