1. VIENNA ECONOMIC FORUM Go South East – Invest in Moldova – Invest in the Region Chisinau Meeting – 20/21 February 2008 Working with Black Sea Trade & Development Bank

2. 2 BSEC Members - Shareholders of BSTDB Romania Ukraine Russia Moldova Turkey Bulgaria Albania Greece Armenia Azerbaijan Georgia

3. 3 BSTDB objectives Facilitation of trade and investment activities among Member Countries Promotion of economic prosperity in Member States and a strong developmental impact Mobilization of domestic and foreign capital

4. 4 BSTDB in 2007 Portfolio (outstanding) – US$ 745 * million Portfolio growth – 64 % ____________________________________________________________________________________________________ Moldova – US$ 17.4 * million (2.35%) Growth – 3.7 times * - preliminary estimates

5. 5 BSTDB Products Project finance Corporate lending Asset-based finance Syndicated loans Trade finance Equity investments

6. 6 BSTDB Lending Up to US$ 36.6 million BSTDB participation Up to 35% of the total project costs Medium to long term maturity depending on type and structure of project Pricing and grace period subject to appraisal and valuation

7. 7 Equity Up to US$ 10 million BSTDB participation Minority stake (generally less than 25% and not more than 33% of total equity). No direct participation in company management Probable seat on the Board of Directors Possible Put option for BSTDB exit

8. 8 Why BSTDB? Stringent but quick approval process Ability to process “small” projects Team blending international and local expertise No political or macroeconomic conditionality attached to the financing

9. 9 BSTDB Project Cycle Disbursement Signing Board Approval Credit Committee Approval Concept Clearance Eligibility Review

10. 10 Maturity of BSTDB loans Typical 2 - 7 years Possible up to 10 years In exceptional cases more than 10 years

11. 11 BSTDB security requirements Standard pledge of shares, assets, corporate/parent guarantees, etc. depending on the project In a cross-boarder investment, the security can be based in the country of investment While possible, sovereign guarantee is not required Unsecured transactions

12. 12 What is the minimum project size BSTDB would consider? Project Size - $10 million BSTDB participation - $3 million

13. 13 Non-Eligible Goods Weaponry or military goods Tobacco and alcohol related products Negative list of relevant countries Negative list of United Nations economic sanctions Negative list of World Bank

14. 14 Eligibility Criteria last 2 - 3 years financial statements audited by international auditors; has adopted International Accounting Standards; have acceptable financial and operational performance,

15. Thanks from the Banking Division of BSTDB www.bstdb.org