Overview of

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Overview of GLOBAL TRADE FINANCE PROGRAM Bonnie
Galat March 16th, 2007
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Global Trade Finance Program

• US 1 billion ceiling
• Goal Global FI network for trade finance
  solutions
• Up to 100 deal cover
• Maturities out to 3 years
• No fees to join

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GTFPs Responsive Platform

• Covers all private sector trade transactions
• Covers all bona fide trade finance instruments
• Covers all goods in accordance with IFCs
  exclusion list
• Requests for cover via SWIFT communication
• Dedicated trade unit responds within 24 hours
• Training and technical assistance provided

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GTFP Guarantees

• AAA Rated Basel II benefits
• Cover country and commercial risk
• Cover payment risks related to trade instruments
  
• Import LCs, standby LCs, prom notes, bills of
  exchange
• Structured as a Standby LC
• Commercial pricing
• Payable after 15 days of claim

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Trade Applications

• Import Finance
• Pre-Export Finance
• Equipment Financing
• Bid Performance Bonds
• Advance payments

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GTFP Program Profile

• GTFP TRANSACTIONS 17 mos.
• As of March 2007
• TOTAL IFC GTEES ISSUED US 705.7 Mil
• TOTAL NO. OF GTEES 691
• AVERAGE TENOR 6 months
• GTEE RANGE US 7K- 15 Mil
• MEDIAN GTEE VALUE US 250K
• RISK-SHARE 34
• SOUTH-SOUTH TRADES 35
• SME IMPORT-EXPORT 77

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Regional Breakdown of Guarantees(US)
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54 Issuing Banks in 29 countries (1)
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54 Issuing Banks in 29 countries (2)
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Next phase coverage

• Latin America and Caribbean
• Haiti
• Jamaica
• Mexico
• Trinidad and Tobago
• Uruguay
• Venezuela
• Mid. East/N.Africa
• Egypt
• Libya
• Tunisia

• E. Europe Central Asia
• Georgia
• Kazakhstan
• Macedonia
• Tajikistan
• Ukraine
• East and South Asia
• Bhutan
• Nepal
• Papua New Guinea
• Philippines
• Sri Lanka

• Africa
• Angola
• Benin
• Burundi
• Cape Verde
• DRC
• Ethiopia
• Gambia
• Malawi
• Mali
• Rwanda
• Senegal
• Sierra Leone
• Zambia

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95 Confirming Banks in 62 countries
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League Table Top 20 Confirming Banks ()

• BNP PARIBAS
• ANZ BANK
• CITIBANK
• AMEX
• COMMERZBANK
• DEUTSCHE BANK
• HSBC
• SMBC
• INTESA SANPAOLO
• CAJA MADRID

• MASHREQBANK
• WACHOVIA
• BANK AUSTRIA
• NOVA SCOTIA
• NORDEA
• DRESDNER
• NATIXIS
• JP MORGAN CHASE
• HVB
• NATIONAL CITY

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US Banks using GTFP worldwide
US 137.8 Million
AMERICAN EXPRESS BANK, BANK OF NEW YORK,
CITIBANK, JP MORGAN CHASE, NATIONAL CITY,
SOVEREIGN BANK, US BANK, WACHOVIA
Hardwood from Canada to Lebanon
Phospohoric Acid from Philippines to Bangladesh
Gasoline Engines from China to Nigeria
Sugar from Brazil to France
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US Trade under the GTFP
US 54.7 Million
Ghana
Mongolia
Nigeria
Dominican Rep.
USA
Bangladesh
Russia
Argentina
China
Brazil
Goods Cashew nuts, chemicals, coffe, cotton,
crude oil, granite, machinery and parts, meat,
plastics, shoes and bags, silicon, wood
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Typical GTFP Transaction Import LCs
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Pre-Export Financing
Goods
Pre-export Funding
Pre-export Financing
International Bank
Request Pre-export Advance
SBLC/ PN for Pre-export Funding
Request IFC Gtee for Pre-Export Loan
IFC Gtee
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Agricultural Machinery from USA to Nigeria

• LC issued by a Nigerian bank
• Confirmed by an American Bank
• Terms of payment Sight payment
• Value 255,000
• IFC Covers 100

Nigeria
USA
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Leather from USA to Dominican Republic

• LC issued by a DR Bank
• Confirmed by an American Bank
• Terms of payment Sight payment
• Value 635,536
• IFC Covers 100

Dominican Republic
USA
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Solar Gas Generators from USA to Russia

• LC issued by a Russian Bank
• Confirmed by an American Bank
• Terms of paymentAt Sight
• Value 4.7 Mil
• IFC Covers 57.81

Russia
USA
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GTFP Contacts
www.ifc.org/gtfp