13 November 2012 – MexicoKen Tinsley – US Eximbank The role of ECAs and private credit insurance in supporting international trade Ken Tinsley, US Eximbank Chair of the Berne Union Medium Long Term Committee

13 November 2012 – MexicoKen Tinsley – US Eximbank Berne Union members provide risk mitigation products to exporters and investors, facilitating international trade and foreign direct investment throughout the world. Credit and investment insurance

13 November 2012 – MexicoKen Tinsley – US Eximbank Trade association Credit & Investment Insurers – private and public Founded in Berne 1934 Today  78 members (including the Berne Union Prague Club)  over 60 countries  USD 1.7 trillion exports insured  10% of world exports Berne Union

13 November 2012 – MexicoKen Tinsley – US Eximbank Short Term Export Credit Insurance (ST) – credit terms of 1 year or less Medium / Long Term Export Credit Insurance (MLT) – credit terms over 1 year up to 15 years Areas of business

13 November 2012 – MexicoKen Tinsley – US Eximbank Confirmed letters of credit (ST) – risk of non-payment by a L/C issuing bank Bank guarantees (ST/MLT) – risk of non-payment by a guarantor Buyer’s credit (MLT) – risks of non-payment by buyers Also: – factoring companies as insured – banks asking exporters to be credit insured Insuring banks

13 November 2012 – MexicoKen Tinsley – US Eximbank Insured exports (USD billion) 948 1,451 1,314 1,431 1,686 1,102 1,269

13 November 2012 – MexicoKen Tinsley – US Eximbank Insured exports – World exports (USD billion) Source world exports: United Nations Statistics Division

13 November 2012 – MexicoKen Tinsley – US Eximbank Insured exports – Public and private insurers (USD billion) 948 1,451 1,314 1,431 1,686 1,102 1,269

13 November 2012 – MexicoKen Tinsley – US Eximbank Claims paid – globally (USD million) 3,344 2,256 2,252 2,696 2,817 5,422 3,779 1,990

13 November 2012 – MexicoKen Tinsley – US Eximbank Short Term export credit insurance

13 November 2012 – MexicoKen Tinsley – US Eximbank Short Term Credit limits at quarter-end (USD billion) Lehman collapse US lose S&P AAA resurgence of Euro-crisis

13 November 2012 – MexicoKen Tinsley – US Eximbank Short Term Credit limits by destination region (USD billion)

13 November 2012 – MexicoKen Tinsley – US Eximbank Short Term Top Credit limits USD billion Commitments 2011 Commitments 2012 H1 Change UNITED STATES616913% GERMANY60612% ITALY5449-8% UNITED KINGDOM46471% FRANCE4846-3% CHINA3938-3% SPAIN3532-9% NETHERLANDS2928-2% BRAZIL2826-4% SWITZERLAND25 -1% BU Total all countries %

13 November 2012 – MexicoKen Tinsley – US Eximbank Short Term Claims paid Western Europe and US – during the crisis USD million change 2010 UNITED STATES %114 ITALY %103 UNITED KINGDOM %50 SPAIN %54 GERMANY589665%54 FRANCE456443%40

13 November 2012 – MexicoKen Tinsley – US Eximbank Short Term Credit limits by destination country (USD billion)

13 November 2012 – MexicoKen Tinsley – US Eximbank Short Term Claims paid Latin America – during the crisis USD million change 2010 BRAZIL %60 MEXICO %46 CHILE27248%1 COLOMBIA26150%5 ARGENTINA205-74%3

13 November 2012 – MexicoKen Tinsley – US Eximbank Short Term claims paid per quarter (USD million)

13 November 2012 – MexicoKen Tinsley – US Eximbank Short Term top claims paid USD million Claims paid 2011 Claims paid 2012 H H1 / 2011 ITALY % UNITED STATES % UNITED KINGDOM % GERMANY854452% FRANCE % SPAIN883742% NETHERLANDS % BRAZIL312581% GREECE362158% SWITZERLAND % BU Total all countries1, %

13 November 2012 – MexicoKen Tinsley – US Eximbank BU member survey – the outlook How do you think new Potential Loss Notifications will change over the next 3 months ? April 2011 October 2012 Up18%59% Steady64%38% Down18%3% Number of responses 3332

13 November 2012 – MexicoKen Tinsley – US Eximbank Medium Long Term export credit insurance

13 November 2012 – MexicoKen Tinsley – US Eximbank (USD billion) MLT Commitments

13 November 2012 – MexicoKen Tinsley – US Eximbank MLT Top Commitments USD billion Commitments 2011 Commitments 2012 H1 Change UNITED STATES4241-3% RUSSIA37 -1% INDIA26274% TURKEY25 1% BRAZIL2524-2% UNITED ARAB EMIRATES2120-7% MEXICO18 -1% CHINA18197% INDONESIA % SAUDI ARABIA17185% BU Total all countries %

13 November 2012 – MexicoKen Tinsley – US Eximbank (USD billion) MLT New Commitments

13 November 2012 – MexicoKen Tinsley – US Eximbank (USD million) MLT Claims paid

13 November 2012 – MexicoKen Tinsley – US Eximbank MLT Top Claims paid 2012 H1 USD million Claims 2011 Claims 2012 H H1 / 2011 LIBYA % IRAN % KOREA REP % UNITED ARAB EMIRATES % CANADA765470% MEXICO705071% UKRAINE % RUSSIA684363% INDONESIA454191% KAZAKHSTAN409358% BU Total all countries2,4571,15547%

13 November 2012 – MexicoKen Tinsley – US Eximbank Current topics Eurozone crisis, Arab spring Product evolution in whole turnover – Addressing customer needs Banks : Liquidity and funding problems, Basel III Risk Management – portfolio management

13 November 2012 – MexicoKen Tinsley – US Eximbank Ken Tinsley Chair of the Berne Union MLT Committee