Funding in Times of Crisis: “ Relieving the Burden” Finding Local Currency solutions to Loan Repayments

Agenda  Introduction  Risks related to MF Investments  The Post Lehman's period  Local Currency Loans  The Local Markets

Foreign Exchange; Focusing on Less Liquid Exotic Markets  International Assets Holding Corporation (IAHC) is an independent, publicly owned financial services firm focused on select, niche international markets. By using its capital and expertise, INTL seeks to facilitate wholesale, cross-border financial flows through market making and trading of international financial instruments.  INTL Global Currencies specializes in providing specialist foreign exchange and treasury services to NGO’s and multi-national corporations doing business in the more difficult emerging markets for more than 25 years.  Clients include over 450 NGO’s, UN and bilateral aid agencies, OECD embassies worldwide, Financial Institutions and Corporations. 2009, has seen the addition of MIVs and DFIs to this extensive client base.  Market coverage of over 125 currencies with longstanding experience in the less liquid markets. In these smaller more difficult markets, our relationships with a wide variety of local banks allows us to capture very competitive rates not offered by the larger international banks.  Through our proprietary dealing platform – FXecute - we provide an integrated web-based solution for Clients to manage their large currency requirements.

MF Investment Risks Hard Currency Loan Country Risk Credit Risk Currency Risk Liquidity Risk Settlement Risk Lender Borrower Lender & Borrower Burden on MFI

The Post Lehman’s Period  International banks called in their loans > USD squeeze started;  Biggest impact on the more stabilised emerging countries with a track record of a stable economy;  This created the effect of unwinding in 6 months a steady 6 years’ worth of investments economy;  Leading to huge currency depreciation > MFIs suddenly faced huge liability in combination with shortage of USD for repayments Relieving the burden……

Local Currency Loan Risks Hard Currency Loan Local Currency Loan Solution for LC Loan Risks Country Risk Credit Risk Currency Risk Liquidity Risk Settlement Risk Lender Borrower Lender & Borrower Lender X X Hedging (e.g. TCX, MFX, Cygma) Professional Service Provider Professional Service Provider Burden on MFIBurden can be relievedBurden on MIV

Local Markets Central/Latin AmericaAfricaAsia Liberalized market Regulated market

Added Value of Professional Executer for DFIs, MIVs and MFIs Access to:  Knowledge: local rules and regulations  Operational Excellence  Professional and Dedicated staff  Liquidity  Competitive Pricing