Global Trade Finance Program IFC – World Bank Group Awarded Best Overall MFI/DFI and Best DFI Africa ICC Banking Commission Meeting

South to South Trade 2 Efficient driver of direct economic growth, which in turn has a relevant contribution to poverty reduction, better distribution of wealth, and MSME reach. South-South trade expanded from 19 to 28 percent of world trade between 2008 and 2011 and is expected to accelerate, reaching 50 percent of world trade by 2021, and 70 percent by 2031.

LAC Opportunities in South to South Trade  Continuous growth of Intra-Latin America trade.  Growing importance of LAC-Asia bilateral trade mainly with China, Japan, and South Korea for the trade of goods like electrical household appliances, vehicles, agricultural goods, and heavy machinery.  Growing importance of LAC-Eastern Europe bilateral trade for the trade of capital equipment, sugar, and ethanol.  LAC-Africa bilateral trade growing in the areas of Agriculture, Energy, Water Management, Health & Education, Transportation, Urbanism, and Tourism. Main LAC trade partners in Africa are South Africa, Algeria, Nigeria, Morocco, Tunisia, and Senegal.  LAC-Middle East bilateral trade growing opportunities mainly on the trade of transportation equipment, beef, soybeans, sugar, corn, engineering services, urea, coal, and petroleum. 3

IFC Global Trade Finance Program  The GTFP bank network connects approved financial institutions in emerging markets (Issuing Banks) with major international and regional banks (Confirming Banks) for the execution of trade finance transactions under 100 % IFC GTFP coverage.  Unequal opportunity for International and Regional banks to expand its trade finance portfolio in LAC with triple A coverage. 4 Cumulative Global Program Statistics since Sept (as of September 2011) TOTAL # / TOTAL TRADE SUPPORTED IN US$21,931 / $23.7 Billion % of South-South Transactions41% Cumulative LAC Program Statistics since Sept (as of September 2011) TOTAL # / TOTAL TRADE SUPPORTED IN US$8,398 / $6.3 Billion % of South-South Transactions43%

 Promissory Note issued by a Honduran Bank  Funded by an American Bank  Tenor: 6 months  Goods: Turbines  Value: US$ 10.4M  IFC Coverage: 100% China Honduras South to South Post-import financing 5 Hydroelectric Machinery from China to Honduras

South to South Letter of Credit 6 Waste Management Trucks from Mexico to Nicaragua  Letter of Credit issued by a Nicaraguan Bank  Confirmed by an Mexican Bank  Tenor: 2 months  Goods: Waste Management Trucks  Value: US$ 850,  IFC Coverage: 100% Mexico Nicaragua

BRAZIL Bolivia South to South Pre-export Financing  Promissory Note issued by a Brazilian Bank  Funded by an American Bank  Tenor: 6 months  Goods: Ethanol  Value: US$ 1.3M  IFC Coverage: 100% Ethanol from Brazil to Bolivia

South to South Letter of Credit 8  Goods: 93,500 Laptop Computers for sixth grade Panamanian children.  Origin of Goods: China  Destination: Panama  Tenor: 2 months  Amount: US$ 19.5M  IFC Coverage : 100% China Panama Laptops for Elementary School Students

Multilaterals Additionality  Door opener opportunity for Issuing Banks to build working partnerships with a vast number of confirming banks via a global network.  Filling the Gap: In light of the eurozone crisis and the reduced financing appetite in challenging markets, the availability of emerging market trade finance from International Banks deteriorated by more than US$ 400 billion for LAC.  Multilateral guarantees provide capital relief for Confirming Banks, which enhances their capacity to support trade finance transactions that would otherwise be challenging if not impossible to book. Thank you! 9