EBRD Trade Facilitation Programme TFP Development of Trade

EBRD Trade Facilitation Programme (TFP) Development of Trade Finance in Eastern Europe, the CIS and the Southern and Eastern Mediterranean Rudolf Putz, Head of TFP Kiev 19 September 2019

EBRD Countries of Operation 28/11/2020

EBRD Trade Facilitation Programme (TFP) Facilitates financing of all stages of the trade chain 28 November 2020 3

How TFP facilitate trade in Ukraine? TFP supports trading by providing: q Access to finance: i) Guarantees that cover risks arising from trade finance and factoring transactions; (ii) Cash advances/financing to issuing banks for trade finance and factoring purposes; q Policy Dialogue – joint work with NBU (regulator) to support international and local trade q Capacity Development: donor funded trade finance training and advisory services to issuing banks and factoring companies 28 November 2020

TFP Guarantees: Example – Import of a grain harvesters from Switzerland into Ukraine § § An Ukrainian company imports grain harvesters from Switzerland An Issuing Bank under the TFP in Ukraine issues a letter of credit for EUR 1 million, confirmed by a Confirming 28 November Bank under the TFP in Italy § EBRD covers 100% of the political and commercial payment risk

Green Trade Facilitation Programme Portfolio in 2016 -18 Technologies Countries Buildings 4% Georgia Moldova 4% 4% Renewable energy 14% Armenia 5% Vehicles and transport (incl agri) 49% Process technologie s 33% Mongolia 2% Cyprus 7% Ukraine 48% Serbia 7% Greece 11% Belarus 12% Other countries: Egypt, North Macedonia, Turkey, Azerbaijan, Bulgaria, Kyrgyz Republic 6

Green Trade Facilitation Programme Approach The Green Trade Facilitation Programme stimulates the supply of green technologies into the EBRD’s region of operations Finances exports, imports and local distribution of green technologies, thus strengthening the supply chains of such technologies Green Trade Facilitation Programme supports energy efficiency, water efficiency, renewable energy and climate resilience technologies, compliant with the EBRD’s requirements In 2019, during its Annual Meeting, the EBRD awarded the most active issuing and confirming banks in green trade for the first time 7

EBRD Trade Facilitation Programme (TFP) 20 years: 1999 - 2019 Over 200 issuing banks and over 800 confirming banks in the TFP network EUR 17. 6 billion of trade activity supported since 1999 Over 150 partner banks and 9, 186 of bank’s staff received training since 2010

EBRD TFP – Active Issuing Banks in Ukraine • • • Credit Agricole Ukraine Oschadbank OTP Bank Raiffeisen Bank Aval State Export-Import Bank of Ukraine Ukrsibbank Piraeus Bank Ukrgazbank Bank Lviv (one more bank in 2019)

TFP - 1, 740 Transactions in 2018 Ranking No of Transactions by Country 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 28 November 2020 Greece Serbia Ukraine Cyprus Belarus Mongolia Armenia Georgia Morocco Turkey Egypt Kyrgyz Republic Uzbekistan 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Romania Bulgaria North Macedonia Tajikistan Lebanon Kosovo Jordan Moldova Croatia Montenegro Tunisia Bosnia and Herzegovina 26. Albania 27. Kazakhstan 10

TFP - Top 25 Confirming Banks Ranked by Number of Transactions in 2018 1. Commerzbank A. G. 13. Societe Generale 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. ING BANK N. V. Unicredit S. P. A. ODDO BHF Aktiengesellschaft UBS Citibank Europe PLC Intesa Sanpaolo S. p. A. KBC Bank NV Deutsche Bank Raiffeisen Bank Credit Agricole CIB BANCA POPOLARE DI SONDRIO 28 November 2020 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. CAIXABANK S. A. Sberbank BNP Paribas UBI Banca SCPA Credit Suisse (Switzerland) Ltd Erste Group Bank AG JSC Bank Centercredit Banco de Sabadell S. A. TURKIYE VAKIFLAR BANKASI T. A. O. JP Morgan Chase Bank Turkiye IS Bankasi A. S. Credit Europe Bank N. V. 11

TFP - Over 800 Confirming Banks in 77 Countries 28 November 2020

EBRD TFP – Co-Financing Partners • ACE Global Markets (AGM) & Lloyds of London • AKA Bank, Germany • Arab Trade Finance Program, Abu Dhabi • Confirming Banks • Donor Risk Sharing Funds • Export Credit Agencies • FMO Netherlands • OPEC Fund for International Development, Vienna • Private Investment Funds 28 November 2020

EBRD TFP – Capacity Development Projects 28 November 2020 14

EBRD- Projects to facilitate international trade I. E-Learning Courses II. Face to face workshops 28 November 2020 III. Networking events to enable industry collaboration IV. Policy dialogue 15

International Trend of “De-risking” • Financial institutions reduced their correspondent banking relationships due to the increased KYC costs • The costs for western banks of maintaining KYC for each RMA key is estimated between $20, 000 70, 000 depending on the level of due 58, 112 46, 372 45, 016 diligence • According to SWIFT, between 2016 and July 2018, the number of correspondent banking relationships in CEE declined by 23% on average. 13, 000+ RMAs were closed during this time 2016 2017 43282

How can EBRD assist? EBRD’s New Capacity Building Programme consists of three elements: I. Introducing KYC and AML Utilities II. Specialist Training Courses III. Customised Advisory Services

EBRD- Compliance Capacity Building Framework 2019 Pilot Project started in Ukraine Accuity Workshop on KYC/AML Utilities ICA Training &Certificat ion Course Seminar Wolfsber g DDQ Workshop ACAMS Workshop March 2019 SWIFT KYC Registry Workshop on KYC/AML Utilities 28 November 2020 Exiger Challenge s &Solutions Worldwide Expert Conference 18

EBRD’s CAPACITY BUILDING PROGRAMME (1/3) I. Introducing KYC and AML Utilities § EBRD will support local banks in countries of operation to create KYC profiles and documents, collaborating with KYC utility providers such as SWIFT, ACCUITY and Wolfsberg Group § EBRD and 91 TFP’s issuing banks from 27 countries have already joined the KYC Registry

EBRD’s CAPACITY BUILDING PROGRAMME (2/3) II. Specialised Training Courses The trainings delivered by EBRD in collaboration with International Compliance Association (200 places offered in 2018 and 400 places in 2019): 1. ICA Certificate in Know Your Customer and Customer due diligence 2. ICA Specialist Certificate in Trade Based Money Laundering 3. ICA Certificate in Financial Crime Prevention 4. ICA Certificate in Correspondent Banking 5. Training on Wolfsberg Questionnaire – will be delivered in collaboration with ICA and Wolfsberg Group 6. Training on Trade Based Financial Crime Compliance - will be delivered in collaboration with London Institute of Banking and Finance

EBRD Pilot Compliance Training with ICA in 2018 ICA professional certification and workshops ICA compliance workshops held in Belarus, Ukraine, Morocco and Uzbekistan KYC/CDD and Trade Based Money Laundering workshops arranged jointly by EBRD and International Compliance Association with 200 attendees in total from EBRD partner banks

EBRD’s CAPACITY BUILDING PROGRAMME (3/3) III. Customised Advisory Services EBRD will offer individual correspondent banking advisory services to assist partner banks in: • optimising and standardizing KYC required documents • enhancing correspondent banking relationships with EBRD TFP networking platform of over 800 Confirming Banks. • implementing improved compliance functions and processes in line with the international standards: ü ISO 19600 “Compliance management systems” ü ISO 37001 “Anti-bribery management systems” 28 November 2020 22

Donors TFP Technical Cooperation (TC) Projects funded by: • • The Early Transition Countries Fund The Shareholder Special Fund European Union Norwegian, Swiss, Italian, Canadian, Taiwanese funding and other donors 28 November 2020

TFP Trade Finance Forum Athens, Greece, 23 -24 October 2019 28 November 2020

Financing Trade with EBRD – Trade Facilitation Programme (TFP) Tashkent, Uzbekistan, 6 -7 November 2019 28 November 2020

Contacts Trade Facilitation Programme European Bank for Reconstruction and Development Join us in social networks: Twitter: www. twitter. com/ebrdtrade Facebook: www. facebook. com/ebrdtfp One Exchange Square, London EC 2 A 2 JN, UK Linked. In: E-mail: Group-TFPOps@ebrd. com www. linkedin. com/groups? gid=4667852 Web-site: www. ebrd. com/tfp Marco Nindl Kamola Makhmudova Rudolf Putz Principal Banker Senior Banker Head of TFP Tel: +44 207 338 7614 Tel: +44 207 338 7731 Tel: +44 207 338 7776 E-mail: nindlm@ebrd. com E-mail: makhmudk@ebrd. com E-mail: putzr@ebrd. com 28 November 2020 26