1. EBRD – Supporting SME business
Euratex SEETAL
Bratislava – 18 June 2009

2. What is the EBRD?
AAA-rated international financial institution founded in 1991, owned by 61 national and two supranational shareholders
EBRD, promotes transition to market economies in 29 countries from central Europe to central Asia
The largest lender and private equity investor in Region 4

3. Financing instruments
DIRECT:
Loans
Equity, including combination of loan and equity
Guarantees, including credit enhancements (performance bonds etc.)
INDIRECT:
SME loans
Equity funds
Micro/small business programmes
Credit lines
Trade Facilitation Programme
Co-financings

4. Responding to the crisis
Strengthen bank balance sheets
Subordinated debt, senior debt
64% increase of financing in Q from EUR 678mln to EUR 1.1bln.
After a complex year in 2008, the Board of Directors has approved a Business Plan and Budget for 2009 which reflects the challenges of an unprecedented global financial crisis. The budget for next year foresees a volume of up to €7 billion (EUR 5.1bln in 2008), an increase of €1 billion from November, this in direct response to the impact of the financial crisis.
Equity

5. Responding to the crisis
Support SME lending
In February, EBRD joined forces with the World Bank Group and the European Investment Bank to announce a €24.5 billion programme of investments to the financial sector for SME lending over the next two years.
The EBRD will provide up to €6 billion for the financial sector in in the form of equity and debt finance, to banks and directly to SMEs, and trade finance.
The EIB will provide some €11 billion in SME lending facilities in Central, Eastern, and Southern Europe, of which €5.7 billion is already available for rapid disbursement, with a further €2.8 billion set for approval by end-April and further tranches expected to follow. The EIF, the EIB Group's venture capital and SME guarantee arm, is also aiming to increase its activity in the region over the next two years.
The World Bank Group will provide support of about €7.5 billion:  
 IFC, through its crisis response initiatives in sectors including banking, infrastructure, and trade as well as through its traditional investment and advisory services, is expected to contribute up to €2 billion;
IBRD intends to increase lending in Europe and Central Asia up to €16 billion in out of which up to €3.5 billion is envisaged for addressing banking sector issues in emerging Europe;
MIGA will provide political risk insurance capacity of up to €2 billion for bank lending, subject to Board approval.
Facility to support medium sized enterprises:
On lending
Credit lines

6. EBRD Trade Facilitation Programme (TFP)
Facilitates financing of all stages of the trade chain
Receivables
Storage & distribution
Export Production
Transport

7. 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 3

8. TFP - Participants Issuing Banks - 115 banks in 19 countries
Selected banks in EBRD countries of operation which meet the following criteria:
Engaged in or developing trade finance operations
Sound financial position and adequate operational procedures
Preferably privately owned with strong shareholders
Confirming banks confirming banks and subsidiaries in 78 countries.
SMEs are the main beneficiaries – 348 of the 1,115 deals in 2008 were smaller than EUR 100,000

9. Export from Croatia to Russia
The Croatian exporter Pliva Hrvatska sells pharmaceuticals to Russia
A Russian Issuing Bank under the TFP opens a confirmed Letter of Credit in the amount of USD 1,1 million and tenor of 400 days to a foreign Confirming Bank
EBRD guarantees payment of amounts or tenors which are not covered by commercial banks or export credit agencies
EBRD guarantees up to 100% of the political and commercial payment risk 5

10. TFP during current Economic Crisis
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, pre-export finance, trade between EBRD countries of operation, factoring)

11. Financial Institutions - Trade Facilitation Programme (TFP)
Contacts
Financial Institutions - Trade Facilitation Programme (TFP)
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
United Kingdom
Tel: (Rebecca Suknenko)
(Mirjana Zalar)
(Yelena Tonna)
Fax: /7029 , 7

12. The EBRD – Your Partner in Central and Eastern Europe
François Lecavalier Director – Czech Republic, Hungary, Slovakia, Slovenia T E
Lukas Kuzmiak
Analyst – Bratislava Regional Office T E