1. Geneva, 22-24 October 2001 1 E-Trade Finance as a competitiveness enhancement for SME's in developing countries Presentation to UNCTAD Geneva, 22-24 October 2001

2. 2 Cost and need for credit are higher for companies in emerging markets  poor information  high perceived risk  low credit management expertise in companies and banks

3. Geneva, 22-24 October 2001 3  supplier credit (in intercompany trade) is the first source of funding for a significant number of companies and countries This is true for trade credit

4. Geneva, 22-24 October 2001 4  higher cost for import  lower value for export  financial constraints for companies and economies Consequences are very negative for companies in emerging markets and for their national economies

5. Geneva, 22-24 October 2001 5  more information available at lower cost,  more financial services available,  but tomorrow … credit refusal can be “at a click”... Internet could make it better …or worse

6. Geneva, 22-24 October 2001 6 Coface enhances the credit of companies in emerging markets, through...  its expertise on companies in emerging markets  its tradition of shared expertise with institutions in emerging markets  its innovative Solution

7. Geneva, 22-24 October 2001 7  Trade credit with SME's in emerging countries can be protected  Coface has pending trade credit risk on 220,000 companies in emerging markets, most of them SME's (out of a total of 2.2 million)  These covers represent $15 Bn turnover in emerging markets (out of a total of $150 Bn)  We have on line data on 1.2 million companies in emerging markets (out of 41 million in our database)  Our credo: there are good companies in every country

8. Geneva, 22-24 October 2001 8  Trade Credit management expertise can be shared with institutions in emerging countries  Coface shares its credit system with partners in 47 countries, a majority being emerging countries  Among our partners: national eximbanks or national credit insurers of Algeria, Brazil, China, Czech Republic, Egypt, India, Kuwait, Morocco, Malaysia, Oman, Poland, Romania, Singapore, Thaïland, Tunisia …  All these institutions are linked through Internet to our "Common Risk System", through a CreditAlliance

9. Geneva, 22-24 October 2001 9  The Solution @rating credit opinion The @rating credit opinion on a company tells if one can extend trade credit to this company @rating Protection @rating Protection covers the credit risk on a company, up to its @rating credit opinion level @rating Quality Label A company can certify its quality worldwide through the @rating Quality Label.  Confidence in commercial partners  Easier access to credit  Enhanced credit worthiness  is the first insurable company rating, rating 41 million companies worldwide. It is the basis of 3 exclusive lines.

10. Geneva, 22-24 October 2001 10 @rating solution is available on line  Though 300+ @rating partners, in 80+ countries  And via cofacerating.com

11. Geneva, 22-24 October 2001 11 What is the credit opinion?  It indicates on line to any interested party if one can safely extend trade credit to a company and, if so, how much :  1@, 2@, 3@, 4@ for recommended outstandings of 20 K€, 50 K€, 100 K€ or more  or X if there is an element of weakness

12. Geneva, 22-24 October 2001 12 Quality Label: the only way to certify its creditworthiness for an emerging market SME You are a company, you have a contact with a new partner, a prospective supplier or a customer; how can you tell him that you deserve credit in a quick, understandable, free and reliable way? Just by telling him, "my company deserves the Quality Label, which you can check for free on cofacerating.com.”

13. Geneva, 22-24 October 2001 13 Trade Finance on line : how it works @rating protection, single risk, 100%, on line, without recourse, worldwide Coface CUSTOMER Trade Finance on line BANK VENDOR Credit opinion

14. Geneva, 22-24 October 2001 14 Some E-Commerce / E-Finance platforms with "@rating inside" used by SME s in emerging markets  Trade Card, end to end foreign trade e-management (members in Hong Kong, Korea, Taiwan…)  Sino Pack, e-factoring (members in Saudi Arabia, Brazil, Romania…)  VFM (Fruits) or Go Trade Sea Food (Fish), e-market places (members in South Africa, Turkey, Hungary, Angola, Vietnam…)

15. Geneva, 22-24 October 2001 15 Integrated Solution for factors - i.e. Bank SinoPac

16. Geneva, 22-24 October 2001 16 Some projects under development  Indian Eximbank Factoring JV  IFC Securitization of Trade Finance for emerging markets exporters