EBRD – Supporting SME business Euratex SEETAL Bratislava – 18 June 2009

What is the EBRD? AAA-rated international financial institution founded in 1991, owned by 61 national and two supranational shareholders EBRD, promotes transition to market economies in 29 countries from central Europe to central Asia The largest lender and private equity investor in Region 4

Financing instruments DIRECT: Loans Equity, including combination of loan and equity Guarantees, including credit enhancements (performance bonds etc.) INDIRECT: SME loans Equity funds Micro/small business programmes Credit lines Trade Facilitation Programme Co-financings

Responding to the crisis Strengthen bank balance sheets Subordinated debt, senior debt 64% increase of financing in Q1 2009. from EUR 678mln to EUR 1.1bln. After a complex year in 2008, the Board of Directors has approved a Business Plan and Budget for 2009 which reflects the challenges of an unprecedented global financial crisis. The budget for next year foresees a volume of up to €7 billion (EUR 5.1bln in 2008), an increase of €1 billion from November, this in direct response to the impact of the financial crisis. Equity

Responding to the crisis Support SME lending In February, EBRD joined forces with the World Bank Group and the European Investment Bank to announce a €24.5 billion programme of investments to the financial sector for SME lending over the next two years. The EBRD will provide up to €6 billion for the financial sector in 2009-10 in the form of equity and debt finance, to banks and directly to SMEs, and trade finance. The EIB will provide some €11 billion in SME lending facilities in Central, Eastern, and Southern Europe, of which €5.7 billion is already available for rapid disbursement, with a further €2.8 billion set for approval by end-April and further tranches expected to follow. The EIF, the EIB Group's venture capital and SME guarantee arm, is also aiming to increase its activity in the region over the next two years. The World Bank Group will provide support of about €7.5 billion:    IFC, through its crisis response initiatives in sectors including banking, infrastructure, and trade as well as through its traditional investment and advisory services, is expected to contribute up to €2 billion; IBRD intends to increase lending in Europe and Central Asia up to €16 billion in 2009-10 out of which up to €3.5 billion is envisaged for addressing banking sector issues in emerging Europe; MIGA will provide political risk insurance capacity of up to €2 billion for bank lending, subject to Board approval. Facility to support medium sized enterprises: On lending Credit lines

EBRD Trade Facilitation Programme (TFP) Facilitates financing of all stages of the trade chain Receivables Storage & distribution Export Production Transport

Trade Facilitation Programme (TFP) Objectives Foster trade, both inter- and intra-regional Help local banks create track records with international banks Provide liquidity to the trade finance system Support the development of factoring services provided by banks and factoring companies Strengthen the trade finance capabilities of local banks 3

TFP - Participants Issuing Banks - 115 banks in 19 countries Selected banks in EBRD countries of operation which meet the following criteria: Engaged in or developing trade finance operations Sound financial position and adequate operational procedures Preferably privately owned with strong shareholders Confirming banks - 774 confirming banks and subsidiaries in 78 countries. SMEs are the main beneficiaries – 348 of the 1,115 deals in 2008 were smaller than EUR 100,000

Export from Croatia to Russia The Croatian exporter Pliva Hrvatska sells pharmaceuticals to Russia A Russian Issuing Bank under the TFP opens a confirmed Letter of Credit in the amount of USD 1,1 million and tenor of 400 days to a foreign Confirming Bank EBRD guarantees payment of amounts or tenors which are not covered by commercial banks or export credit agencies EBRD guarantees up to 100% of the political and commercial payment risk 5

TFP during current Economic Crisis Increase the TFP Programme limit from currently EUR 800 million to EUR 1.5 billion Increase existing TFP facilities Guarantee also deferred payments L/Cs, L/Cs with post-financing and advanced payment guarantees Provide liquidity also in form of cash facilities to Issuing Banks for trade finance transactions which cannot be funded by foreign commercial banks or export credit agencies (e.g. post-financing for import of capital goods, local distribution of imported goods, pre-export finance, trade between EBRD countries of operation, factoring)

Financial Institutions - Trade Facilitation Programme (TFP) Contacts Financial Institutions - Trade Facilitation Programme (TFP) European Bank for Reconstruction and Development One Exchange Square London EC2A 2JN United Kingdom Tel: +44 207 338 6476 (Rebecca Suknenko) +44 207 338 7762 (Mirjana Zalar) +44 207 338 6813 (Yelena Tonna) Fax: +44 207 338 6119/7029 e-mail: zalarm@ebrd.com , suknenkr@ebrd.com, tonnay@ebrd.com www.ebrd.com/tfp 7

The EBRD – Your Partner in Central and Eastern Europe François Lecavalier Director – Czech Republic, Hungary, Slovakia, Slovenia T +421 2 5910 1700 E lecavalf@ebrd.com Lukas Kuzmiak Analyst – Bratislava Regional Office T +421 2 5910 1706 E kuzmiakl@ebrd.com