Introduction to the trade facilitation programme cairo 23 rd april 2012
This presentation is the property of its rightful owner.
Sponsored Links
1 / 37

Introduction to the Trade Facilitation Programme Cairo, 23 rd April 2012 PowerPoint PPT Presentation


  • 83 Views
  • Uploaded on
  • Presentation posted in: General

Introduction to the Trade Facilitation Programme Cairo, 23 rd April 2012. TFP application areas. Facilitates financing of all stages of the trade chain. Receivables. Export Production. Storage & distribution. Transport. TFP – How does it work?.

Download Presentation

Introduction to the Trade Facilitation Programme Cairo, 23 rd April 2012

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Introduction to the trade facilitation programme cairo 23 rd april 2012

Introduction to theTrade Facilitation ProgrammeCairo, 23rd April 2012


Tfp application areas

TFP application areas

Facilitates financing of all stages of the trade chain

Receivables

Export Production

Storage & distribution

Transport


Tfp how does it work

TFP – How does it work?

EBRD supports the development of trade finance in partner banks by

  • Basic and Advanced Trade Finance training courses and advisory services

  • 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: 100 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)

    • Currently 56 RCAs


Tfp facilities two main components

Trade Facilitation Programme

(EUR 1.5 bln. million framework)

Trade Finance

Guarantee

Facility

(fully operational

since 1999)

Trade Finance Cash

Facility -

Revolving Credit

Agreement (RCA)

(launched in 2000)

TFP Facilities - Two Main Components


Tfp guarantee transaction

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


Tfp guarantees

Different from/complementary to export credit insurance:

Stand-by letters of credit (L/C) (under UCP 600)

usually issued within 24 hours

Cover all types of trade finance instruments issued by EBRD client banks: letters of credit, including deferred payment/post-financing; bank payment guarantees; bid bonds, performance bonds; advanced payment guarantees; stand-by L/Cs, etc.

Issued only to Confirming Banks, not to exporters or importers

Payable 15 days after receipt of first written demand

Cover up to 100% of the commercial and political risk which cannot be covered by commercial banks, commercial credit insurance or ECAs

Cover exports, imports and distribution of imported goods in EBRD countries of operation, irrespective of the country of origin (no origin rules)

Tenor: max. 3 years

Amounts: no minimum amount

TFP - Guarantees


Introduction to the trade facilitation programme cairo 23 rd april 2012

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

Issuing Bank,

Country of

Operations

L/C Issuance with request to confirm

(L/G Issuance with counter-guarantee, other banking trade finance instruments)

L/C Confirmation

Application for L/C opening

Buyer

Seller

SALES-PURCHASE AGREEMENT


Example import of foodstuff from europe to egypt

Example – Import of foodstuff from Europe to Egypt

  • An Egyptian supermarket chainbuys foodstuff from Italy

  • An Egyptian bank issues a letter of credit, confirmed by an Italian bank

  • EBRD guarantees up to 100% of the political and commercial payment risk


Example exports from egypt to fyr macedonia

Example – Exports from Egypt to FYR Macedonia

  • An Egyptian companysells air conditioners plus spare parts to an importer in FYR Macedonia

  • A Macedonian bank issues a letter of credit, confirmed by an Egyptian bank

  • EBRD guarantees up to 100% of the political and commercial payment risk


Example exports from egypt to russian federation

Example – Exports from Egypt to Russian Federation

  • An Egyptian exportersells fruitsto an importer in Novorossiysk, Russia Federation

  • A Russian bankissues a letter of credit, confirmed by an Egyptian bank

  • EBRD guarantees up to 100% of the political and commercial payment risk


Types of goods and trade finance instruments

Types of Goods and Trade Finance Instruments

  • All types of goods, commodities and equipment, except for EBRD’s general exclusion list and environmental exclusion list

  • Facilitated by:

    • L/C, SBLC, payment guarantees and counter-guarantees

    • trade-related promissory notes and bills of exchange

    • bid, performance bonds, contract guarantees

    • construction guarantees, leasing guarantees

    • credit card and other payment guarantees


How egyptian banks can join the ebrd tfp

How Egyptian banks can join the EBRD TFP

or/and

Confirming Bank

Issuing Bank


100 issuing banks ib in 18 countries

100 Issuing Banks (IB) in 18 Countries


Tfp issuing banks selection criteria

TFP – Issuing Banks Selection Criteria

  • Readiness to develop trade finance business with local importers and exporters

  • Acceptable credit standing

  • Diversified loan portfolio; limited lending to related parties

  • Transparent ownership structure

  • Integrity of owners and management

  • Corporate governance

  • Money laundering procedures

  • Environmental due diligence


800 confirming banks in 77 countries

800 Confirming Banks in 77 Countries


Tfp confirming banks selection criteria

TFP – Confirming Banks Selection Criteria

  • Readiness and interest to develop and conduct trade finance business with EBRD countries of operation

  • Advanced and experienced trade finance procedures and operations

  • Standardised confirming bank agreement (signed by 800 banks)


Introduction to the trade facilitation programme cairo 23 rd april 2012

Trade Finance Cash Facility

Local Company

loan disbursement

loan repayment

  • 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


Case study import of insulators into kazakhstan

Case study – Import of insulators into Kazakhstan

  • Saint-Gobain Isover (Finland)sells heat insulator to an importer in Kazakhstan

  • Bank in Kazakhstanrequest a cash disbursement fromthe TFP of the EBRD

  • EBRD disburses EUR 0.5 million for 1 year to cover the post-import financing


Case study export of wine from moldova

Case 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 USD 170,000, tenor 8 months)


Introduction to the trade facilitation programme cairo 23 rd april 2012

Financing of distribution of imported goods:EBRD provides liquidity in form of cash advances in local or foreign currency to client banks

Car dealer

in Russia

Peugeot

Russia

Car dealer

in Russia

EBRD

1.THROUGH DEFERRED PAYMENT L/C

TFP guarantee facility

in EUR

Peugeot

France

Bank in

Russia

Sales Contract in EUR

Guarantee

facility in EUR

Opens L/C in favour of Peugeot France with payment 3 - 6 months after delivery

EBRD

2. THROUGH CASH ADVANCES

TFP cash advances

in RUB

Peugeot

France

Bank in

Russia

Sales contract

in EUR

Sales

contract

in RUB

Loan facility

in RUB

tenor 3 – 6 months After delivery


Ebrd tfp factoring facilities

EBRD TFP - Factoring Facilities

  • EBRD grants loan facilities to local banks and factoring companies to fund their portfolio of domestic and export factoring transactions.

  • Tenors: max. 6 months, revolving; typically 90 days.

  • Closely matching asset conversion cycle with monthly up-dates on list of invoices which have been financed.

  • First factoring facilities were approved in 2007 for Promsvyazbank Russia and Ukreximbank in Ukraine and Credit Bank of Moscow in 2008.


Achievements to date 1999 december 2011

Achievements to Date (1999 - December 2011)

  • Total number of transactions: 12,000

    • transactions issued by 142 banks in 22 countries of EBRD’s Operation

    • confirmed by 356 banks in 56 countries

  • Total amount of trade supported:EUR 7.83 billion

  • Amount of EBRD guarantees and cash advances:EUR 7.1 billion


Ebrd tfp business volumes p a 1999 2011

EBRD TFP Business Volumes p.a. 1999 - 2011


Tfp 1 616 trade finance transactions in 2011

TFP – 1,616 Trade Finance Transactions in 2011

  • FYR Macedonia (63)

  • Bosnia & Herzegovina(14)

  • Serbia (13)

  • Tajikistan (9)

  • Croatia (5)

  • Turkmenistan (4)

  • Kyrgyz Republic (2)

  • Mongolia (2)

  • Belarus (381)

  • Russia (300)

  • Georgia (277)

  • Ukraine (144)

  • Armenia (141)

  • Kazakhstan (117)

  • Azerbaijan (80)

  • Moldova (64)


Ebrd tfp exports from egypt to eastern europe cis countries

EBRD TFP – Exports from Egypt to Eastern Europe & CIS countries

  • Cosmetic products to Armenia

  • Rice to Bosnia and Herzegovina

  • Air conditioners to Croatia

  • Charter flights to Georgia

  • Marble and granite to Macedonia

  • Oranges and fruits to Russia

  • Medicine to Tajikistan

  • Machinery to Ukraine


Tfp in egypt

TFP in Egypt

4 Confirming Banks:

  • Commercial International Bank

  • Egyptian Gulf Bank

  • National Bank of Egypt

  • Suez Canal Bank

    Issuing Banks: Q3 onwards


Tfp technical cooperation projects

TFP – Technical Cooperation Projects

EUR 6.5 million have been used for TFP TC consultancy services and trainings of over 1,000 trade finance professionals from 210 banks in 17 of EBRD’s countries of operation


Tfp trade finance training advisory projects 2010 2011

TFP Trade Finance Training & Advisory Projects 2010 & 2011

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.


Introduction to the trade facilitation programme cairo 23 rd april 2012

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.


Ebrd trade finance e learning programme

EBRD Trade Finance e-Learning Programme


2012 graduation ceremony 7 feb in moscow in partnership with

2012 Graduation Ceremony – 7 Feb in Moscow In partnership with

5th Annual Russia & Eurasia Trade & Export Finance Conference

Best students received further scholarships and sponsored training programmes in leading European confirming banks and training companies


Ebrd tfp co financing partners

EBRD TFP - Co-Financing Partners

ACE Global Markets (AGM) & Lloyd´s of London

Confirming Banks

Donor Risk Sharing Funds

Export Credit Agencies

FMO Netherlands

OPEC Fund for International Development

Private Investment Funds


Ebrd best development bank in trade

EBRD – Best Development Bank in Trade

Readers of Global Trade Review (GTR),Trade & Forfaiting Review (TFR) and Trade Finance Magazine have voted the EBRD “Worldwide Best Development Bank in Trade in 2008, 2009, 2010 and 2011”

EBRD invites other development banks, commercial financial institutions, export credit agencies and donors to co-finance or co-finance with the EBRD


Ebrd tfp advantages for issuing banks and confirming banks in egypt

EBRD TFP – Advantages for Issuing Banks and Confirming Banks in Egypt

  • Banks in Egypt can join the programme as Issuing Banks and/or Confirming Banks and benefit from EBRD’s network of more than 800 Issuing Banks and Confirming Banks worldwide

  • Benefit from EBRD’s high leveltrade financetraining programmes and advisory services (offered free of charge to Issuing Banks in Egypt)

  • Benefit from EBRD’s additional risk taking capacity when foreign commercial banks cannot provide sufficient risk cover or liquidity; sometimes also longer tenors (maximum 3 years) and/or higher transaction amounts than commercial banks can provide

  • Fees and interest charged only in case of utilisation and in line with the pricing charged by foreign commercial banks

  • Fast decisions and processing, usually within 24 hours

  • EBRD invites commercial banks, insurance underwriters and development agencies to co-finance with the EBRD


Ebrd tfp conditions for joining the tfp as issuing bank

EBRD TFP – Conditions for joining the TFP as Issuing Bank

  • Meet all covenants and conditions of the EBRD Issuing Bank agreement

  • Regular reporting to the EBRD (financial reports, reports on underlying trade finance transactions for which TFP facilities have been used, statistics, etc.)


Introduction to the trade facilitation programme cairo 23 rd april 2012

www.ebrd.com/tfp


Contacts

Contacts

Financial Institutions – Trade Facilitation Programme TFP)

European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN

United Kingdom

Tel: +44 20 7338 7614

Fax: +44 20 7338 6119/7029

e-mail:[email protected]

www.ebrd.com/tfp


  • Login