- 1 - The Role of IFIs in CEE Securitisations The EBRD Perspective Tõnu Pekk Senior Banker, Non-Bank Financial Institutions & Structured Finance

- 2 - Introduction to EBRD EBRD experience in ABS Role of IFIs in Securitisations to Date Agenda

- 3 - Introduction to EBRD International financial institution established in 1991, owned by 60 national and 2 supranational shareholders Shareholders include CEE, CIS and EU member states, USA, Canada, Japan, Australia, New Zealand, EU and EIB Promotes market-based economies in 29 countries from Central Europe to Central Asia; provides debt and equity financing to both state and private sector projects Representative offices in all countries of operation Capital base of € 20 billion 15 successful years of operation

- 4 - EBRD’s Role in the Financial Sector Promote market-based financial institutions and contribute to institution building Support private and entrepreneurial initiatives, acting as a door opener for local and western investors Engage in policy dialogue with operators and authorities to strengthen regulatory/legislative frameworks and enhance overall corporate governance and institutions Support the development of local capital markets, new securities and the access to secondary market refinancing EBRD provides value-added support

- 5 - EBRD experience in ABS - concept Supports the development of pension managers and life insurance Lends to the Financial Intermediaries Capital Markets EBRD supports the development of the capital markets by helping to bring together the creators of long-term funding and users

- 6 - EBRD experience in ABS – pre-financing Leasing –Portfolio of loans to finance leasing companies throughout the region in excess of € 500 million Mortgage –Portfolio of loans to both commercial banks and specialist mortgage institutions throughout the region in excess of € 500 million. –Introduction of EBRD’s Minimum Standards and Best Practices for mortgage lending Consumer Finance –Portfolio of over € 200 million loans to consumer finance institutions in the region –Key criteria for selecting best market operators in terms of lending practices and transparency Other assets –SME loans, Trade Finance receivables

- 7 - Russia €250,000,000 Securitisation of Russian consumer loans November 2005 €8,500,000 Mezzanine notes Russia €250,000,000 Securitisation of Russian consumer loans November 2005 €8,500,000 Mezzanine notes Russia €300,000,000 Securitisation of Russian consumer loans April 2006 €30,000,000 Hybrid notes €10,000,000 Mezzanine notes Russia €300,000,000 Securitisation of Russian consumer loans April 2006 €30,000,000 Hybrid notes €10,000,000 Mezzanine notes Russia €220,000,000 Securitisation of Russian auto loans November 2006 €20,000,000 Junior notes Russia €220,000,000 Securitisation of Russian auto loans November 2006 €20,000,000 Junior notes Russia $403,000,000 Securitisation of Russian auto loans October 2006 $15,000,000 Junior notes $20,000,000 Commingling risk facility Russia $206,300,000 Securitisation of Russian mortgages April 2007 $1,500,000 Mezzanine notes $8,500,000 Junior notes Russia RUB 3,294,794,000 Securitisation of Russian mortgages May 2007 RUB 264,000,000 Class B bonds Russia RUB 3,294,794,000 Securitisation of Russian mortgages May 2007 RUB 264,000,000 Class B bonds EBRD experience in ABS – transactions

- 8 - Role of IFIs in Securitisations Helping to overcome obstacles to securitisation: Short asset performance history, although improving Standards Legal issues and untested court systems Status Limited local currency ABS investor base Funding

- 9 - Role of IFIs in Russian ABS to Date 06VTBRMBSIFC GOLF, mez investment 06City MortgageRMBSOPIC mez 05RSB (Private)Consumer Loans EBRD mez 06RSBConsumer Loans EBRD & IFC mez, EBRD A2 Comingling notes 06RSBAuto LoansEBRD & IFC mez 06MDMAuto LoansEBRD mez underwriting; EBRD Comingling Loss facility 07AHMLRMBSEBRD mez 07RZBAuto loansIFC junior and mez

Role of EBRD in Securitisations What can EBRD Provide? Credit enhancement for public ABS: –Investor in Junior Tranches – Mezzanine, potentially also Equity (in foreign and local currency) –Liquidity Facilities – Including commingling, transfer & convertibility risk coverage –Unfunded Risk Participation – synthetic credit enhancement Warehousing Structures Foreign Exchange & Interest Rate Hedging Solutions

Contact Details Fax:DIRECTOR Tel: Jonathan Woollett Structured Finance & Securitisation Fax:SENIOR BANKER Tel: Tõnu Pekk Fax:PRINCIPAL BANKER Tel: Andreea Moraru Fax: ASSOCIATE BANKER Tel: Yerbolat Rakhmetov