Panhellenic Exporters Association Athens, December 9, 2005

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Panhellenic Exporters Association Athens,
December 9, 2005
IFC Services Structured Finance - Risk Sharing
Products Doing Business in 2006 Vladimir
Mihailovski IFC Country Officer, Bulgaria
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What is IFC?

• Private sector arm of the World Bank
• Shareholders are 176 Governments around the world

• Mission to promote sustainable private sector
  investment in developing countries as to reduce
  poverty and improve peoples lives
• Operates on a commercial basis, and have made a
  profit every year since
• Strong shareholder support, triple-A ratings and
  substantial capital base

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What IFC Offers in Southern Europe

• Offices in
• Albania
• Bulgaria
• Croatia
• FYR Macedonia
• Romania
• Serbia Montenegro

Hub in Istanbul

• Global experience and particularly long
  experience in the region
• Diversity of products and services
• Reputation and standing to help negotiations
• Measure of political risk cover
• Catalyst for other investors and lenders

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Where Do We Invest?
Portfolio as of End September 2005
Portfolio
by sector, in
General Manufacturing Financial Markets Oil,
Gas, Mining Information Technologies Health
Education Other
1010 M 1203 M 258 M 51 M 47 M 241 M
36 43 9 2 2 8
2.8 Billion
by group countries, in
Turkey Bulgaria, Croatia, Romania Albania, BH,
FYR Maced, Moldova, SM Central Asia and
Azerbaijan
37 36 16 11
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• Structured Finance
• Risk Sharing Products

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Structured Finance Products

• Partial Credit Guarantees
• Securitizations
• Risk Sharing Facilities

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Partial Credit Guarantee Basics

• IFC irrevocably guarantees the due and punctual
  payment of principal and interest, up to the
  guarantee amount
• The guarantee can be used for either a loan or
  bond
• The guarantee is structured to reduce probability
  of default and increase recovery given default
• IFCs objective is to offer the minimum amount of
  guarantee necessary in order to facilitate a
  successful transaction

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Securitizations Risk Sharing Facilities IFC
Role
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Risk Sharing Products Benefits to the Client

• Reduce capital required to hold financial assets
• Increase capacity to originate new assets
• Improve key balance sheet ratios, risk
  management, and operational efficiency
• Enables the bank to build a track record that
  will make a securitization easier when the market
  is ready
• Help the implementation of a cost-effective,
  alternative funding mechanism, which often
  remains available under stress

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• Doing Business in 2006

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Doing Business Report 2006

• Annual co publication of the World bank and the
  IFC
• Investigates regulations that enhance business
  activity and those that constrain them
• A number of simple indicators are used to
  analyze economic outcomes and identify what
  reforms have worked, where, and why.

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Doing Business Report 2006
Analyzed Areas
1. Starting a Business 2. Dealing with
Licenses 3. Hiring and Firing Workers 4.
Registering Property 5. Getting Credit 6.
Protecting Investors 7. Paying Taxes 8. Trading
Across Borders 9. Enforcing Contracts 10. Closing
a Business
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Number of Procedures to Start Business
Ease of Doing Business Starting a Business
Time to Start Business (days)
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Ease of Doing Business Licenses Property
Registration
Number of Procedures to Obtain a License
Time to Register Property (days)
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Time to Export (days)
Ease of Doing Business Trading Across Borders
Time to Import (days)
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Ease of Doing Business Business Environment
Still Faces with Constrains
Time to Enforce a Contract (days)
Cost to Enforce Contract in of the debt
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Doing Business 2006Conclusion

• The rank on the ease to do business may provide
  fair orientation of to what extend the Government
  has created a regulatory environment conductive
  to business operations.
• Improvements on these indicators proxy for
  broader reforms than examined in the Doing
  Business report
• Improvements in indicators are associated with
  expanded reach of regulation as simpler and less
  burdensome rules may entice the informal business
  to join the formal sector

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• THANK YOU