PRESENTATION, Introduction to panel discussion developing trade finance in Mongolia, Marco Nindl
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Transcript of PRESENTATION, Introduction to panel discussion developing trade finance in Mongolia, Marco Nindl
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Mongolia Trade & Commodity Finance ConferenceMongolia Trade & Commodity Finance Conference
Introduction to Panel Discussion: Developing trade Introduction to Panel Discussion: Developing trade finance in Mongoliafinance in Mongoliafinance in Mongoliafinance in Mongolia
Marco NindlMarco NindlUlaanbaatar, 13 October 2011Ulaanbaatar, 13 October 2011
What is the EBRD?What is the EBRD?
International financial institution promotes transition56
6064
institution, promotes transition to market economies in 29 countries from central Europe to central Asia
Owned by 61 countries and two inter-governmental institutions
1620242832364044485256
€ b
illio
n
Capital base of €30 billion*
Cumulative commitments of €62.0 billion
Unaudited as at 31 December 2010
048
1216
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
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Shareholders breakdown
Global Shareholder StructureGlobal Shareholder Structure
Triple-A Shareholders Form 60%
Shareholders breakdown
Japan8 6%
EBRD region
EU 27 Countries
(1)62.7%
8.6% region excluding
EU (2)7.3%
USA10.1%
Others11.3%
(1) Includes European Community and European Investment Bank each at 3%; France, Germany, Italy, UK each at 8.6%
(2) Russia at 4%
As at 1 September 2010
12 65
Invested over €62.0bn € billion
EBRD’s objectives achieved through financing the EBRD’s objectives achieved through financing the private sectorprivate sector
4
6
8
10
15
25
35
45
55in more than 3,119 projects since 1991
€9.0bn invested in 2010 in 380 projects
Private sector > 79% of EBRD fi a
l b
usi
nes
s vo
lum
e (A
BV
)
Net cu
mu
lative b
usin
e
0
2
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
-5
5
Debt ABV Equity ABV Net Cumulative Business Volume
EBRD finance
Debt 83%, Equity 17% of EBRD finance
An
nu
a ss
volu
me
Reconciled as at 31 December 2010
3
A network of 36 offices in 29 countries
More than half our bankers based in the region
Where we operate
EBRD in MongoliaEBRD in Mongolia
Resident Office in Ulaanbaatar operational since p2007
Promote a sound investment climate, good corporate governance and stronger institutions
100% share of private sector projects
Debt/Equity Investments: 77% / 23%
Net business volume EUR 300.9 million
Total project value EUR 877.2 million
*All figures cumulative as of March 2011
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Trade Facilitation Programme (TFP)Trade Facilitation Programme (TFP)of EBRDof EBRD
Facilitates financing of all stages of the trade chain
Production & Export Transport Storage &
distribution
Receivables Management
TFP TFP –– How does it work?How does it work?
EBRD supports trade by providing:EBRD supports trade by providing:
guaranteesguarantees that cover risks arising from trade finance
transactions:
shortshort--term cash advances/financingterm cash advances/financing for pre-export
and post import as well as local trade finance purposes;;
TC funded trade finance training and advisory training and advisory
serviceservice..
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Two Main ComponentsTwo Main Components
Trade Facilitation Programmeg(EUR 1.5 billion framework)
Trade Finance Guarantee
Facility
Trade Finance Cash
Facility(fully operational
since 1999)(launched in 2000)
Guarantee Structure and ApplicationGuarantee Structure and Application
EBRD issues a Stand-By
Banking InstrumentBanking Instrument
ApplicationConfirmation
Letter of Credit covering the risks of Issuing Bank
towards the Confirming bankObligation Issuing
Bank,Country of Operation
Obligation Receiving Bank,
World Wide
BuyerSeller UnderlyingTrade Transaction
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Sample: Sample: TFP TFP –– Import of car tyres and Import of car tyres and spare parts to Mongoliaspare parts to Mongolia
A German automobile producer sells car tyres and spare parts to Mongolia, EUR 940,000
A Mongolian bank issues a L/C, confirmed by a bank in Germany y
EBRD guarantees 100% of the political and commercial payment risk
ShortShort--term cash advances/financingterm cash advances/financing
Local Company
Local Bank (EBRD’s borrower)•Takes local company risk
•Borrows from EBRD•On-lends to the local company
Loan repayment Loan disbursement
EBRD
•Takes local bank risk•Lends to the local bank against
sub-loan reports
Repayment to EBRD EBRD’s disbursement
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Sample: Export of wine from MoldovaSample: Export of wine from Moldova
A Moldovan wine 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 EBRD grants a loan to a Moldovan bank which the bank can use to fund a loan to the Moldovan exporter (amount USD 170,000, tenor 8 months)
TFP TFP –– Technical Cooperation ProjectsTechnical Cooperation Projects
EUR 4.2 million have been used for TFP TC consultancy services training of over 800 trade finance staff of 200 banks in 17 of EBRD’s Countries of Operation
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TFP TFP -- Trade Finance Training in Trade Finance Training in MongoliaMongolia
TFP Trade Finance Training & Advisory ProjectsTFP Trade Finance Training & Advisory Projects
2009 & 20102009 & 2010
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, etc.
Projects were generously sponsoredProjects were generously sponsoredby Taipei China, Switzerland, Italy, theNetherlands, New Norway CooperationFund, Western Balkans Fund, EarlyTransition Country Fund, SpecialShare-holder Fund of EBRD.
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EBRD EEBRD E--Learning ProgrammeLearning Programme
The ICC’s technology partner Coastline Solutions has assisted EBRD to develop an online training programme incorporating ICCEBRD 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 230 trade professionals from 70 banks in 15 countries enrolled.
TFP Business Volume p.a. TFP Business Volume p.a. 1999 1999 -- 20102010
900
300
400
500
600
700
800Volume, € mln
0
100
200
300
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
10
EBRD TFP EBRD TFP –– 1274 Transactions in 1274 Transactions in 20102010
1. Russia (489)
2. Kazakhstan (118)
3. Georgia (112)
4. Belarus (105)
5. Ukraine (98)
6. Macedonia (74)
7. Azerbaijan (63)
8. Moldova (63)
9. Armenia (61)
10. Uzbekistan (24)
11. Serbia (23)
12. Tajikistan (20)
13. Bosnia (12)
14. Kyrgyz Republic (9)
15. Croatia (2)
16. Turkmenistan (1)
TFP support for SMEsTFP support for SMEs
1,274 transactions in 2010
87% of all transactions are under EUR 1 million87% of all transactions are under EUR 1 million
462
651
300
400
500
600
700
Number of Transactions
136
250
100
200
<100,000 0.1 - 1mln
1 - 5 mln > 5 mln
Amount in EURs
11
TFP in MongoliaTFP in Mongolia
Currently 2 Issuing Banks:Currently 2 Issuing Banks:
730 Confirming Banks in 77 730 Confirming Banks in 77 CountriesCountries
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EBRD TFP EBRD TFP –– Top 20 Confirming Banks by Top 20 Confirming Banks by Number of Transactions in 2010 Number of Transactions in 2010
1. Commerzbank
2 Deutsche Bank
11. Banco de Sabadell
12 KBC Bank2. Deutsche Bank
3. UniCredit Bank
4. UBS
5. HSBC Bank
6. Bank of New York Mellon
7. LBBW
12. KBC Bank
13. JP Morgan Chase Bank
14. BHF Bank
15. Landesbank Berlin
16. Fortis Bank
17. Banca delle Marche
18 Banca Monte dei Paschi di Siena8. Intesa San Paolo
9. RZB
10. ING Bank
18. Banca Monte dei Paschi di Siena
19. Bank Hapoalim
20. Yapi ve Kredi Bankasi
The Panellists:The Panellists:
Panel Discussion: Developing trade finance in Mongolia
Vincent O’Brien,Vincent O’Brien, Chair, Market Intelligence Group, ICC Chair, Market Intelligence Group, ICC Banking CommissionBanking Commission
Bodo Thöns,Bodo Thöns, Senior Representative for Kazakhstan, Senior Representative for Kazakhstan, Tajikistan, Kyrgyzstan & Mongolia, CommerzbankTajikistan, Kyrgyzstan & Mongolia, Commerzbank
Bulgan Zayat,Bulgan Zayat, Director of SME Banking, XacBankDirector of SME Banking, XacBankg y ,g y , g,g,
Stephen Caley,Stephen Caley, Chief Risk Officer, Khan BankChief Risk Officer, Khan Bank