EXIMBANK IN SUPPORT OF CHINESE-HUNGARIAN TRADE RELATIONS

Zoltán Urbán

CEO

INTEGRATED SYSTEM TO SUPPORT

FOREIGN TRADE AND ECONOMY

STATE OWNERSHIP RIGHTS EXERCISED BY THE MINISTER OF FOREIGN AFFAIRS AND TRADE

RELATIONSHIP WITH THE STATE

100% STATE OWNERSHIP - RIGHTS EXERCISED BY THE MINISTER OF FOREIGN AFFAIRS AND TRADE

• Under the Eximbank Act, the Hungarian state is liable, as absolute direct surety, for the fulfillment of Eximbank's obligations

• HUF 1,200bn upper limit under the 2015 Budget Act

• Utilization: 59.1% or HUF 708.9bn (EUR 2.2bn)

• Upper limit of HUF 350bn under the 2015 Budget Act

• Utilization: 3.9% or HUF 13.5bn (EUR) 41,9 million)

• MEHIB covered by 100% state guarantee under the Budget Act

• Interest rate compensation system in accordance with the OECD rules

STATUTORY GUARANTEE – FUNDING

STATUTORY GUARANTEE – ASSET SIDE

• Rating equal to the state: BBB- (Fitch Ratings) • Capital adequacy ratio: 13,14%*

* On 31 December, 2016 preliminary report

KEY FIGURES

4

LOAN PORTFOLIO LOAN DISBURSEMENT

GUARANTEES INSURANCE PORTFOLIO

+48.7% +65.5%

+29.3%

+26.0%

0

500

1 000

1 500

2 000

2 500

3 000

2012 2013 2014 2015 2016

661,7

984,1

1 628,7

2 106,4

2 655

M EUR

0

20

40

60

80

100

2012 2013 2014 2015 2016

90,6

54,9

47,6

73,3

94

M EUR

0

200

400

600

800

1 000

1 200

1 400

1 600

2012 2013 2014 2015 2016

405,1

600,6

1 051,4

1 279,21 421

M EUR

PRODUCT RANGE

FINANCING GUARANTEES RISK SHARING

CORE ACTIVITIES

ARMS OF ACTIVITIES

DIRECTLY THROUGH

CREDIT INSTITUTIONS

FINANCING PRODUCTS

PROCUREMENT INCOME

REALIZATION

INVESTMENT CREDIT – FOR FOREIGN INVESTMENTS

DIFFERENT CAPITAL-

TYPE LOANS

DIRECT EXPORT PRE-FINANCING

REFINANCING FOR PRE-FINANCING

BUYER’S CREDIT FACILITIES

FORFAITING, SHORT-TERM PURCHASE OF

RECEIVABLES

RE-FINANCING FOR POST FINANCING

EXPORT PRE-FINANCING INVESTMENT FINANCING

EXPORT POST-FINANCING

SUPPLY CHAIN FINANCING

REFINANCING FOR LEASING AND INVESTMENT

DIR

ECTL

Y T

O

CO

MPA

NIE

S

FOR

CO

MPA

NIE

S TH

RO

UG

H C

RED

IT

INST

ITU

TIO

NS

TIED AID

PRODUCTION DELIVERY INVESTMENT

CREDIT GUARANTEE

SUPPLIER’S CREDIT INSURANCE (S)

EXPORT RECEIVABLES INSURANCE (C)

MANUFACTURING RISK INSURANCE (G)

RISK SHARING PRODUCTS (GUARANTEES AND EXPORT CREDIT INSURANCE)

termelés kiszállítás befektetés, beruházás árbevétel realizálás

NON-SHAREHOLDER’S CREDIT INSURANCE (BH)

BUYER’S CREDIT INSURANCE (V)

SUPPLIER’S CREDIT DISCOUNTING

INSURANCE (KV)

FACTORING INSURANCE (CF)

EXPORT L/C CONFIRMATION INSURANCE (AI)

COMMERCIAL GUARANTESS

PROCUREMENT PRODUCTION DELIVERY INVESTMENT INCOME REALIZATION

EXPORT PRE-FINANCING INVESTMENT FINANCING

EXPORT POST-FINANCING

Dir

ect

ly f

or

com

pan

ies

For

com

pan

ies

thro

ugh

cre

dit

in

stit

uti

on

s

HUNGARIAN CONTENT

Min. 50% Min. 25% Min. 50%

PRODUCT CONSTRUCTION SERVICE

With the certificate of origin

issued by the regional

Hungarian Chamber of

Commerce and Trade

evidencing that at least

50% of goods exported

under the financed

transaction originates from

Hungary.

At least one quarter of the

value of the general contract

less the costs of financing

should be of Hungarian

origin, certified by a

certificate of origin issued by

the regional Hungarian

Chamber of Commerce and

Trade.

At least one half of the persons

employed by the financed client

must be persons who are in a

contractual relationship with the

client that creates a social security

insurance obligation for the client

pursuant to the provisions of the Act

on Eligibility for social security

insurance benefits, private pension

and on the coverage of these

services, as well as the Act on the

itemised tax- payment obligation of

small tax-payer enterprises and on

the small business tax.

Moscow

Belgrade Istanbul

LOCATION – FOREIGN AND DOMESTIC OFFICES

„OPENING TO THE EAST” AND ”OPENING TO THE SOUTH”

NEW COUNTRY LIMITS HAVE BEEN ESTABLISHED

68 countries

65 countries

Russia Forfaiting: retail, chemical industry, agribusiness Discounting of receivables: building industry Interbank buyer's credit: delivery of gas turbines, building industry, Buyer's credit: wood processing factory, delivery of gas turbines , health care, building industry, equipment delivery, construction of power plant

Azerbaijan Buyer’s credit: food industry, Forfaiting: agribusiness

Kazakhstan Forfaiting: waste processing

Uzbekistan Interbank buyer’s credit: wine

equipment

Tajikistan Buyer’s credit: beer equipment

Mongolia Interbank buyers’s credit: mechanical engineering, new urbanization project

Republic of Belarus Interbank buyer’s credit: goods and services Buyer’s credit: Construction

EXIM’S ACTIVITIES

EASTERN OPENING STRATEGY – CHINA

Project name Export of supplements for medical equipments

Exporter Supplement manufacturer

Buyer Chinese company

Debtor Chinese company

Total sum EUR 300.000

Credit types and conditions Purchase of debt; Full 100% purchase of 120 day deferred payment without counterparty

Nature of the project There is no additional insurance for the buyer’s risk (excluding MEHIB insurance)

RELATIONSHIP WITH CHINA

OUR PARTNERS IN CHINA

EQUITY FINANCING THROUGH INVESTMENT FUNDS

• EXIM Export Incentive and Promotion Fund (2016)

• EXIM Economic Incentive Fund (2016)

• Portfolion Regional Private Equity Fund (2014)

• China Central and Eastern Europe Investment Cooperation Fund (2014)

• IFC Partnership Trust Fund (2014), 20 M USD, PSLO

• IFC Financial Institution Growth Fund (2015)

• Kazakh-Hungarian Agriculture Cooperation Fund (2015)

• EU-Africa Infrastructure Trust Fund (2016)

DOMESTIC FUNDS INTERNATIONAL FUNDS

CHINA FUND

Investment Country Subject

Polenergia s.a. Poland Vertically Integrated Energy Group

GWB Grenoble Poland Wind Parks

BKF Group Hungary Budapest Metropolitan University – profit-oriented educational institution

Electronic Control System s.a. Poland Telecommunication infrastructure (towers)

Southern Windfarm s.p. Poland Wind Parks

GWP Grenoble Wind Power Limited Poland Wind Parks

Bioton s.a. Poland Biotechnology (producer and seller of insulin)

Walltopia OOD Bulgaria World leader in climbing wall (design and manufacturing)

Energy 21 a.s. Czech Republic

Solar Panel Parks (manufacturer and operator)

Invitel Hungary Telecommunication

Established: 2013

Investors: China Exim Bank, Hungarian EXIM, China CEE Managaement

Size of fund: 435 million USD

IFC PARTNERSHIP TRUST FUND

REGIONAL FOCUS

Europe and Central Asia

MENA

East Asia and the Pacific

South Asia

Subsaharan Africa

PROJECTS FINANCED FROM THE IFC TRUST FUND

CHINA - 3 projects

Project Country/Region

Green Building Regulation China Project East Asia and Pacific / China

2030 Water Resources Group East Asia East Asia and Pacific / China

China Water Efficiency (Energy & Water Solutions for Corporates)

East Asia and Pacific / China

Address: Hungary, H-1065 Budapest, Nagymező street 46-48. Phone: +36 (1) 374 9100 / Phone: +36 (1) 374 9200

Fax: +36 (1) 269 4476 Web: www.exim.hu

Thank you for your attention!