Ngân hàng xuất khẩu CH Séc

How can Czech Export Bank help? „DAY OF VIETNAM“ FINANCING CZECH EXPORTS TO VIỆT NAM

Czech Government´s Export Promotion Scheme Ministry of Industry and Trade EGAP Czech Export Bank CzechTrade Ministry of Foreign Affairs of the Czech Republic 3 –defends trade interests of the Czech Republic within the EU, WTO, OECD –contributes to abolishing trade barriers and supports Czech official participation in international trade fairs, etc. –state-owned insurance company covering export credit risks and political and commercial risks uninsurable by commercial insurance –state-owned bank financing officially supported export credits –Provides export assistance and advice, individual counseling, export education –frames and coordinates the foreign policy of the CR in the area of external economic relations including the development cooperation and humanitarian aid

CEB is a specialized banking institution … Mission of CEB: provide state support for exports through financing of export credits mostly in EUR and USD 100% government-owned – one of the pillars of the government’s pro-export policy system Set up in 1995 Integral part of the Czech Republic‘s banking system, fully subject to standard banking regulations Same rating as the Czech Republic (Moody’s: A1; S&P: AA-) Operating in line with the rules of WTO, OECD and EU 4

CEB follows and supplements… We follow Czech exporters to the territories of their interest 81 countries, including Vietnam, in last 20 years of CEB´s existence We supplement the services offered by the domestic banking system by financing export operations requiring long-term financing at interest rates and in volumes that are not available to exporters on the banking market under the current domestic conditions Czech exporters can compete on international markets under conditions comparable to those enjoyed by their main foreign competitors We utilize standard insurance cover of EGAP 5

Enormous potential of trade between Vietnam and CR Very active exchange of goods between our two countries → the trade balance increases every year HOWEVER in last 20 years Czech exports to Vietnam increased 21x, while imports from Vietnam 82x →Czech exporters need our support! Perspective sectors for Czech suppliers in Vietnam: - Technology and equipment for industrial production - Engineering equipment (footwear and textile machinery, machine tools) - Packaging machinery - Breweries and microbreweries - Equipment for power production, environmental projects, such as incineration and wastewater treatment plants All of these sectors are traditionally supported by CEB. 6

CEB is ready to provide assistance to Czech exporters and Vietnamese partners in finding the most suitable financing solutions for their projects involving Czech technologies. CEB and BIDV signed a Memorandum on Cooperation → enhanced cooperation on specific projects. Examples of recommended financing structures provided by CEB: Buyer´s credit through a leading public or private bank; Direct buyer´s credit secured by a guarantee issued by a respectable guarantor, e.g. a governmental agency, a leading bank, etc.; Financing Czech investments in Vietnam; Forfaiting under Deferred payment L/Cs; Turn-key project financing; Bank guarantees covering Czech exporters´ obligations. 7 How can we help Czech exporters in Vietnam?

8 Sample Scheme and Basic Conditions 1. export credit may finance up to 85 % of the export contract value (ECV = Czech + 3 rd countries deliveries) + local deliveries of up to 30% of the ECV, repayment conditions in accordance with the terms of OECD Consensus 2. a minimum of 15 % of the export contract is paid directly by the importer to the exporter as an advance payment 3. the credit insured by the EGAP 4. at least 50 % of the deliveries must be of Czech origin

CEB´s Main Product Portfolio 9 Borrower Product CZECH EXPORTER Export production financing Financing of market research Supplier's credit Guarantees Purchase of export receivables CZECH INVESTOR Financing of investments abroad FOREIGN IMPORTER Buyer's credit EXPORTER´S BANK Refinancing of supplier's or buyer's credit IMPORTER´S BANK Refinancing of buyer's credit

CEB’s Product Portfolio by Types of Product As of 31 DEC 14 (Total value CZK 86.1 bn) 10

CEB’s Product Portfolio by Countries As of 31 DEC 14 (Total value CZK 86.1 bn) 11

CEB’s Product Portfolio by Sectors As of 31 DEC 14 (Total value CZK 86.1 bn) 12

Key Features of CEB´s Strategy Supporting Czech exporters in the role of final suppliers Increasing the number of supported exporters Promoting Czech investment activities abroad Territorial diversification Minimizing the „burden“ on the state budget New tools of export financing and flexibility Ensuring financial stability of the bank and minimizing risks Expanding the investor base 13

Martin Švéda Head of Department Export Finance Corporate & SME Czech Export Bank Prague 1, Vodickova 34 Czech Republic Thank you for your kind attention 14