Croatian Trade Export Credit Insurance in support of Open days Workshop “Public Financial Institutions in Europe”, Brussels, 11Oct 2011

About HBOR is the Croatian Bank for Reconstruction and Development Established in 1992 as a specialized financial institution with a public mandate 100% owned by the Republic of Croatia Credit rating: Baa3 (Moody’s) BBB- (S&P) HBOR’s triple role: 1.) Development bank 2.) Export finance bank 3.) Export Credit Agency

The business of exports In today’s international trade, a precondition for the realization of an export transaction is very often the possibility of sale with deferred payment, i.e. on credit This alters the business relation with the foreign buyer to a credit relation, creating additional costs and risks The usual insurance instruments against non-payment, such as letters of credit and guarantees, are often impossible to obtain from buyers and sometimes offer insufficient security. Therefore export insurance against political and commercial risks has been developed

In what Environment do we act? The primary sector in which HBOR operates is the insurance of non-marketable risks However, an „escape clause“ allows state intervention where the marketable risks become temporarily non-marketable owing to the unavailability of private insurance or reinsurance capacity In this way, HBOR can complement the Croatian insurance market in line with EU regulations HBOR provides comprehensive cover Coverage can be granted for goods/services of Croatian origin (min.40% content of Croatian goods/services) or less in case of national interest

What We Offer Pre-export financing Guarantees Pre-shipment Payment As a public export credit agency, we offer export credit insurance programs on the state's account We can accompany the domestic exporter during all stages of the export cycle: Pre-export financing Guarantees Pre-shipment Payment

OUR PORTFOLIO

Pre-payment insurance Pre-export financing insurance Pre-shipment insurance Who benefits? Exporters facing lack of working capital for pre-export financing, in case when no customary collateral can be offered to creditors or in case when the collateral is not sufficient to meet the loan terms and conditions. Who we protect We provide support for exporters whose goods are manufactured according to a specific order and cannot be sold to any other buyer.

Guarantee insurance What is the goal? Promote exporters, who are confronted with the need for first-class bank guarantees issued in favor of their buyers as a condition for entering into export contracts. Who is insured? The Program enables banks in the Republic of Croatia to insure the risk of payment under a guarantee issued for the purpose of winning or performing an export contract, owing to an unfair and/or fair calling up to 80% of loss. Simultaneously, it safeguards exporters against political risks in foreign markets and the risk of unfair calling under a guarantee.

Post-shipment insurance Buyer non-payment insurance Short-term credit Insurance & Reinsurance Medium-Long-term credit Insurance for capital goods & services for consumer goods

Overview Easier access to new markets Exporter can focus on growth & increase in competitiveness Easier access to financial resources and guarantees Better chances of winning a tender Commercial and political risks are transferred to HBOR

Industries Current exposure by industries

Exposure to 47 countries and 650 debtors on 31 December 2010

Between 1999 and 2011 87 indemnities have been paid out

HBOR as a public export credit agency How we are adding value 3,3% of overall Croatian export volume in 2010 insured As a non-profit institution, we are able to complement the offerings of the private insurance market (non-marketable risks and “Escape clause”) We insure the risk for countries that the market is not willing to hold We support small and medium enterprises Insurance policy is used as a protection and a marketing tool With taking parts of their risk on us and providing them with easier access to financial resources, we support our exporters and consequently the growth of our economy as a whole HBOR as a public export credit agency

Contacts THANK YOU! www.hbor.hr Strossmayerov trg 9 10000 Zagreb Croatia Tel: +385 1 4591 539 Fax: +385 1 4591 547 THANK YOU!