Download Growing into the Future for Bilateral Trade

Growing into the Future for
Bilateral Trade
JOHNSON C.T. LIAO
Senior Vice President & General Manager
Export Insurance Dept.
The Export-Import Bank of the Republic of China
Apr.05.2013. in Brazil
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Contents
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Preface
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Exports & Imports Snapshots
( Brazil, Peru, Mexico, El Salvador V.S. Taiwan)
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EXIMBANK of R.O.C. (“EXIMBANK”)
Introduction & Snapshots
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Business Trend of EXIMBANK
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How To increase the Bilateral Economic
Relationship
EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Preface~ The importance of
International Trade to Taiwan
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Y=C+I+G+(
X-M)
EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Taiwan need to expand our trade scope
Russia
0.5%
Canada
0.8%
EU
9.2%
U.S.
11.8%
Middle East
2.4%
The 5 Countries of
Central America
0.2%
Brazil
0.8%
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Brazil
0.59%
Peru
0.10%
Mexico
0.54%
El Salvador 0.04%
Total
1.27%
S. Korea
4.0% Japan
China
5.9%
40.2%
India
The Philippines
1.4% Malaysia 2.3%
Singapore 2.2%
5.5% Indonesia
1.6%
ASEAN
Australia
1.2%
16.7%
Africa
1.0%
Total export in 2012:
US$308.3 billion
New Zealand
0.1%
EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
1st and 2nd IC
foundry provider
4th NB and branded PC
maker
2nd and 3rd TFT-LCD
maker
2nd mobile phone chipset maker and 4th IC designer
4th NOR Flash IC maker
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Facing the Competition and substitution of Emerging
Markets Taiwan better get prepared to integrate
toward upstream
 Downstream: Only price competition
 Upstream: Good way to elevate product value
2012 Exports
US$301.1 Bn
Materials
Russia &
Middle-East
Material
Processing & Hightech Equip.
Global
Market
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Intermediate
Product
Processing
Final Product
Taiwan &
Processing
China & Asean
S.Korea
Europe/USA/
Japan
2012 Imports
US$270.7 Bn
EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Taiwan and Brazil
Exports & Imports Stats
Year
2010
2011
2012
Remark
EX & IM
IC, Oil products
from Asphalt
Imports from
US$1.9Bn
Taiwan
Exports to
Taiwan
US$2.35Bn US$1.83Bn extracts, electric
appliance for
receptor and
monitor, etc.
US$2.44Bn US$2.99Bn US$2.79Bn
Iron ore, Soy
bean, Sweet
Corn
Total
US$4.35Bn US$5.35Bn US$4.62Bn
Trade Value
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
 EXIMBANK of R.O.C.– A Policy Bank
EXIMBANK is a full-implementation agency of the ROC
government's trade and economic policies; i.e., Providing
financial services and assisting manufacturers to expand
markets in foreign trade. The best helper and partner of
Taiwanese exporters and foreign buyers.
A 100% government-owned bank owned by Ministry of Finance
(MOF, Taiwan)
 EXIMBANK of R.O.C. – A Provider for
Financing Service & Export Credit Insurance
EXIMBANK also proactively provides relevant financing projects
and export credit insurance services to assist corporations to
diversify export markets, to enhance competitiveness in foreign
trade , to accelerate export trade business and to create
domestic employment opportunities.
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
The Export-Import Bank of R.O.C
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Established: 1979 (33 years old )
Capital: US$ 400 million ( NT$12 billion)
Chair of the Board Directors:Phd. Chrystal Shih
Location: Taipei, Taiwan
Employees: 200 (42 work for EI Dept.)
Head Office: Taipei
Branch: Hsinchu, Taichung, Kaohsiung
BIS Ratio : 31.60%
2012 Fitch rating ( Long-Term Foreign
Currency IDR：AAA+；Outlook Stable)
Website: www.eximbank.com.tw
EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
EXIMBANK of R.O.C.
Organization Chart
Board of
Directors
Chairman
President
Executive Vice
President
Export
Insurance
Committee
Credit
Committee
Executive Vice
President &
General Auditor
Executive Vice
President
Auditing Office
Ethics Office
Personnel
Office
Dept. of
Accounting
Legal Affairs
Section
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Dept. of Risk
Management
Information
Management
Section
Dept. of
Administrative
Management
Offshore
Banking Branch
Kaohsiung
Branch
Dept. of
Finance
Dept. of Export
Insurance
Taichung
Branch
Dept. of Loan
and Guarantee
Hsinchu Branch
EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Export Credits
Types of Export Credit:
(1)Supplier’s Credit
(2)Buyer’s Credit
(3)Relending Facility
(4)Shipbuilding Financing,etc
(5) Mid/Long-Term Financing/Guarantee Services
Overseas Investment Credit
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
What is Relending Facility
 A type of financing provided by EXIMBANK to a foreign bank that
in turn relends the funds to its clients for the purchase of various
products from Taiwan
 Beneficial to both foreign buyers and Relending Banks as the
former is able to enjoy import financing with installment repayments
while the latter can easily get funds from the EXIMBANK
Repayment
Export Import Bank of ROC
（Taiwan）
Loan
Payment
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Taiwanese Exporter
Foreign Buyer
EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Export Contract
Repayment
Funding
Relending Bank
（Foreign Country）
Outline of the Relending Facility
• A revolving line of credit from EXIMBANK to
a foreign bank.
• The foreign bank makes a loan to their
clients for importing goods from Taiwan.
• Reimbursement of funds from EXIMBANK to
the foreign bank after delivery of goods by
Taiwan exporter.
• Repayment by the foreign bank to
EXIMBANK.
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Outline of the Relending Facility
Risk sharing scheme-EXIMBANK undertakes the
repayment risk of the foreign bank
The foreign bank undertakes the
repayment risk of the importer
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Relending Banks
 EXIMBANK
has cooperated with
42 banks in 20 countries up to April,
2012.
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Financing Terms and Conditions
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Eligible goods: Exported from Taiwan
Currency: US dollars
Percentage of Financing: Up to 85%-100% of transaction
Interest Rate: Floating at 6- month LIBOR plus a margin
Tenor :
 consumer goods: from 6 months up to 1 year
 non-consumer goods: up to 5 years
Repayment of Principal:
 In one lump sum on the maturity date
 semi-annual installments (tenor > 1year)
Payment of Interest: Interest paid every 6 months
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
MOST COMMON PAYMENT TERMS
FOR TAIWANESE EXPORTERS
1. C.W.O. (Cash With Order)
2. C.A.D. (Cash Against Documents)
3. L/C (Leter of Credit)
(1) Sight L/C
(2) Usance L/C
4. D/P (Document against payment)
5. D/A (Document against Acceptance)
6. O/A (Open Account)
7. Installment
8. Consignment
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
TAIWAN INTERNATIONAL TRADING TREND
(PAST 20 YEARS)
100%
Year
L/C
N-L/C
Year
L/C
N-L/C
Total L/C
1991
57.2%
42.8%
2009
12.2%
87.8%
Total Non-LC
1992
53.2%
46.8%
2010
11.7%
88.3%
1993
47.5%
52.5%
2011
11.6%
88.4%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source from Central Bank of Taiwan
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Comparison of Methods of Payment in
International Trade in R.O.C.
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Letter of Credit
Documentary Collection
Open Account
EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Details of our Insurance Products
1.L/C Export Credit Insurance
2.Comprehensive D/P, D/A Export Credit Insurance
3.Comprehensive Open Account Export Credit
Insurance
4.Overseas Investment Credit Insurance
5.Overseas Construction Credit Insurance
6.Global-Sure Credit Insurance-whole turnover
policy
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Performance of EXIMBANK 2012
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Insured Amount: NT$ 896.03 million
(22.06% increase V.S 2011)
EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Business Trend of EXIMBANK
~ 2012 Insured Area
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Business Trend of EXIMBANK
~ 2012 Insurance Covered by Industry
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Business Trend of EXIMBANK
~ 2012 Loss by Region
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Business Trend of EXIMBANK
~ Amount covered in recent 7 years
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
Trade Performance of EXIMBANK to
Brazil
US$/ Thousand
ITEM
Export Insurance
Export Credit
YEAR
2010
2011
2012
Sub-Total
Total
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83,578
5,702
56,977
3,133
37,032
8,722
177,587
17,557
195,144
EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
How could EXIMBANK of R.O.C. increase
the Bilateral Economic Relationship
Credit Services
Medium and Long-Term Export Credit
Medium and Long-Term Import Credit
Overseas Investment Credit
Overseas Construction Credit
Technology Export Credit
Short-Term Export Credit
International Accounts Receivable Factoring
General Export Credit
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
How could EXIMBANK of R.O.C. increase
the Bilateral Economic Relationship
Guarantee Services
Export Guarantee
Import Guarantee
Overseas Construction Guarantee
Shipbuilding Guarantee
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
How Could EXIMBANK of R.O.C. Increase
the Bilateral Economic Relationship
Export Insurance Services
Comprehensive D/P, D/A Export Credit Insurance
Comprehensive Open Account Export Credit Insurance
Safety Export Credit Insurance for Small Medium Enterprises
Global-Sure Credit Insurance
Export Credit Insurance for L/C
Medium and Long-Term Export Credit Insurance
Overseas Investment Credit Insurance
Overseas Construction Credit Insurance
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade
EXIMBANK of R.O.C.
Growing into the Future for
Bilateral Trade
Thanks for your patience
The Export-Import Bank of the R.O.C
Website: www.eximbank.com.tw
Tel: +886.2.3322.0582
Fax:+886.2.2395.8316
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EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade