The ICTF Global Credit Professionals Symposium OPEN FORUM April 19, 2016 Discussion of Export Credit and Collection Challenges in Latin America, Europe, Middle East, Asia and Africa

Has anyone seen an increase in payment defaults from BRIC customers? Latin America Has anyone seen an increase in payment defaults from BRIC customers? Please describe recent payment experience trends in Argentina and Brazil. What is the outlook for country risk? What’s happening with the banking systems? Is anyone selling to Ecuador? What terms? Are credit insurers open for coverage? Are L/C’s being confirmed?

Asia What terms are being asked for from your customers in China? Is there a “standard” term within China? Specifically in China – what is the best way to structure payment via Banker’s Acceptance Draft to get prompt payments? What companies seem to do a better job providing information on companies in the Asia/Pacific region?

Asia cont… Please comment on your recent experience with customers in Indonesia. What is the outlook for the market in Indonesia?

How do others obtain financials from customers in the Middle East? Middle East & Africa What specific concerns need to be considered when setting up L/C credit terms for customers in the Middle East? How do others obtain financials from customers in the Middle East?

Middle East & Africa cont… Is anyone else hearing that Egypt has changed their regulations surrounding the way they are allowed to transfer money and that everything must now be completed via bank-to-bank document transactions? Could people comment on their experience in dealing with customers in Africa – specifically when it comes to receiving timely payments?

General Questions How do others see risk changing around the world and what is your company doing in preparation for these changes? Are you shortening payment terms vs. what you would extend previously? Are you paying more for financing than you did before? What other options are suppliers using if a customer refuses to pay via Letter of Credit?

General Questions cont… How many companies have started to use BPO to replace L/C’s? Is it difficult to get customers to switch? What are the benefits/challenges of BPO vs. L/C? Has anyone tried using an escrow arrangement as a means of assuring payment in an international sale? How would you compare it with L/C? When would escrow be appropriate?

General Questions Retention of title is a provision used in some sales contracts that states that the title to the goods remains with the seller until certain obligations are fulfilled by the buyer. When is this relevant in bankruptcy or administration proceedings? i.e. I’ve seen in some countries that it’s important to demonstrate that the creditor has retention of title before a trustee will allow a recovery from a debtor in administration. In other countries, such as U.S., it appears that for an unsecured creditor’s claim, the fact that they have retention of title (as per contract clause) may not be relevant in bankruptcy reorganization. Is retention of title more narrowly defined to include only consigned inventories here?

General Questions cont… How many credit departments are getting pressure to outsource routine calls for savings and how is it going? THANK YOU FOR YOUR PARTICIPATION!!! We look forward to seeing you in Florida – November 13-15, 2016 The Ritz-Carlton, Ft. Lauderdale, FL