Export, invest and grow. Facts and figures. Export Services-Annual Review 2015

Transcription

1 Export, invest and grow. Facts and figures Export Services-Annual Review 2015

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3 Contents OeKB and its affiliates 4 Letter from the Executive Board 6 Page reference Development of the Export Services 7 More Infornation on the Internet Guarantees of the Republic of Austria under the Export Guarantees Act (AusfFG) 8 Aggregate exposure limit under the Export Guarantees Act 9 Guarantee business by type of guarantee 10 Guarantee business by credit period of transactions guaranteed 12 Guarantee business by region and country 13 Debt-rescheduling 15 Guarantee system income and expenses, and claims paid by region and country 16 Oesterreichische Kontrollbank AG Export Financing Scheme 21 Business activity covered by the Export Financing Scheme 22 Credit commitments and disbursements under the Export Financing Scheme 23 Export financing business by region and country 24 Tied financial credits, purchases of accounts receivable and other types of financing 27 Interest rates in the Export Financing Scheme 28 Sources and uses of funds 29 Guarantees of the Republic of Austria under the Export Financing Guarantees Act (AFFG) 30 Legal provisions 32 Glossary 33 Publication information 35 Export Services - Annual Review

4 OeKB and its affiliates supporting Austria,s export industry Oesterreichische Kontrollbank AG OeKB is Austria s main provider of financial and information services to the export industry and the capital market. OeKB is also a highly rated issuer of bonds. Oesterreichische Entwicklungsbank AG OeEB specialises in the provision of long-term finance for private sector projects in developing countries to promote sustainable development. Österreichischer Exportfonds GmbH Exportfonds provides financing for export sales and market development projects to Austrian small and medium-sized enterprises. Am Hof 4, Strauchgasse Vienna Tel exportservice@oekb.at Strauchgasse Vienna Tel office@oe-eb.at Strauchgasse Vienna Tel exportfonds@exportfonds.at

5 Acredia Versicherung AG Austria s credit insurers safeguard receivables at home and abroad. They keep track of risks and reimburse policyholders in the event of default. Austria s leading credit insurer Acredia Versicherung AG can offer solutions tailored to customers needs thanks to having two brands under one roof: Weihburggasse Vienna Tel service@oekbversicherung.at Himmelpfortgasse Vienna Tel office@prisma-kredit.com

6 Letter from the Executive Board Dear reader, as in 2015, Austrian exports have a positive long-term effect on the development of the domestic economy. We are pleased that OeKB could help make new direct investments abroad easier for Austrian companies and keep them afloat in difficult times for the global economy. While demand for federal government guarantees and export financing continued to decline, there are clear signs that this trend will tail off in 2016, with interest in these services increasing again in the course of the economic recovery that is expected. Together with the Federal Ministry of Finance, coverage in the export guarantee system was extended, particularly in difficult markets, and the criteria for value-added as well as excesses (retained amounts) for political risks were adapted to provide additional leeway in international competition. At the same time OeKB generated a significant surplus for the Republic. As of 1 January 2016, the conditions for fixed interest rates in the Export Financing Scheme are calculated based on the weighted average life (WAL) of the loan. Exporters and their banks have reacted extremely positively to this new development and to how easily the online calculator on our website, can be used. Our team of Export Services consultants ( Exportservice-Beratung ) has successfully established itself. Since 2015 it has been visiting companies throughout Austria, providing them with suitable solutions for their exports and direct investments abroad. This is done in close cooperation with the financing teams of the commercial banks. Acredia Versicherung AG, the leading player in the Austrian private credit insurance sector, performed well in a challenging market with its brands PRISMA Die Kreditversicherung and OeKB Versicherung. Both OeKB Group financing subsidiaries, the SME specialist ( Österreichischer Exportfonds GmbH) and the Development Bank of Austria ( Oesterreichische Entwicklungsbank AG ) increased their financing volumes. RUDOLF SCHOLTEN ANGELIKA SOMMER HEMETSBERGER 6 Export Services Annual Review 2015

7 Development of the Export Services Since 1950 OeKB, as the agent of the Republic of Austria, has been managing the country s export guarantee system. As a service provider for the Austrian Federal Ministry of Finance (BMF), OeKB operates the system of export guarantees and direct investments abroad; the export guarantees are limited to non-marketable risks on foreign sales. Cover for marketable risks is provided by private export credit insurers. Applications for guarantees are screened by OeKB and then reviewed by an advisory committee within the BMF. Guarantees are issued by the Federal Minister of Finance on behalf of the Republic of Austria. Since 1954 OeKB has been a member of the Berne Union (International Union of Credit and Investment Insurers). This organisation currently comprises 51 export guarantee and investment guarantee institutions from 41 countries. The aims of the Berne Union are the coordination of international trade terms and the extensive sharing of information between members. Since 1960 OeKB has been operating a programme to finance exports of goods and services, largely on a medium and long-term basis. Special emphasis is placed on exports of Austrian capital goods. Known as the Export Financing Scheme, this programme serves to refinance export credits given by credit institutions and to cover direct financing conducted by OeKB. OeKB provides financing in Euros and foreign currencies at floating and fixed interest rates. The 1995 Amendment to the Export Guarantees Act allows guarantees to be issued for untied credits. Since 1997 OeKB s Export Academy has been offering employees of banks, exporters and other interested parties a detailed insight into the export services of OeKB Group. To date, more than 1,100 participants have attended the 73 events arranged by the Export Academy. Since 2000 OeKB has made it an absolute priority to sign agreements with other export credit insurers and financial institutions, thereby facilitating the overall insuring and financing of complex multisourcing projects. Since 2001 environmental and social impacts have been considered in the evaluation of projects applying for support, based on the resolutions of the OECD. Since 2008 OeKB has been encouraging all guarantee holders and beneficiaries of aval endorsements for foreign investment projects to familiarize themselves with the OECD Guidelines for Multinational Enterprises and to observe them wherever possible in their international activities. Guarantees and financing for exports Berne Union Export Financing Scheme Guarantees for untied credits Export Academy International cooperation OECD ExternalTrade/Investme nt_policy/seiten/oecd- Guidelines-for- Multinational- Enterprises.aspx Export Services - Annual Review

8 Guarantees of the Republic of Austria under the Export Guarantees Act (AusfFG) Acting as the agent of and for the account of the Republic of Austria (represented by the Federal Ministry of Finance), OeKB performs the following tasks: evaluation (including credit assessment) of applications for guarantees for the due performance of contracts by foreign contracting parties, or through endorsements (guarantees by aval) of bills of exchange used to finance export transactions or outbound foreign direct investment, issuing and administrative processing of the guarantees on behalf of the Republic of Austria, exercising the rights of the Republic of Austria under the guarantee contracts. Federal Organic Budget Act 2013 On 1 January 2013 the second part of Austria s budget law reform took effect, based on the 2013 Federal Organic Budget Act (BHG 2013). Important accounting requirements include, among others, the evaluation of issued Austrian federal government-backed guarantees and of federal government receivables in foreign currency, the set-up of provisions for federal government guarantees issued, the accrual-basis recognition of up-front premium income from federal government guarantees and the recognition of impairment losses on existing federal government receivables. The accounting principles are reflected in the tables below concerning export guarantees under the Export Guarantees Act, system income and expenses, and guarantee claims. Export guarantees are issued in compliance with the guidelines, directives and regulations of international agreements of the OECD, the EU and the Berne Union. 8 Export Services Annual Review 2015

9 Aggregate exposure limit under the Export Guarantees Act All data in the following tables includes guarantees for debt-rescheduling agreements and excludes recoverable claims (see the table Income and expenses from guarantees ). Information Aggregate exposure limit under the Export Guarantees Act and its utilisation Outstanding 31 December December December December 2015 million % million % million % million % Aggregate guarantee exposure limit 1 50, % 50, % 50, % 50, % Utilisation of the guarantee exposure limit 34, % 31, % 28, % 25, % Change from prior year -2, % -3, % -3, % -2, % Unused limit 15, % 18, % 21, % 24, % Aggregate guarantee exposure (after measurement) 34, % 31, % 28, % 26, % 1 Federal Law Gazette I no. 145/2008 and no. 121/2012 New guarantee contracts issued million New guarantee contracts issued 1 5,135 3,512 3,842 3, ,204 Change from previous year , Change in percent +10.2% -31.6% +9.4% -2.2% 1 Including conditional commitments converted into guarantee contracts; excluding new conditional commitments Export Services - Annual Review

10 Guarantee business by type of guarantee The export guarantee system comprises twelve types of guarantee. For certain kinds of guarantee, conditional commitments may be issued which are not counted against the aggregate guarantee exposure limit. Conditional guarantee commitments are contingent in nature and intended to facilitate the contract negotiations of exporters or of the credit institutions providing funding. G 1 G 2 G 3 G 4 G 5 G 6 G 7 G 8 G 9 G 11 AE Guarantee for direct deliveries and services with special types of guarantee Guarantee for indirect deliveries and services Guarantee for tied financial credits, credit transactions/bond issues and debt-rescheduling agreements Investment guarantee Turnover guarantee (one foreign customer) Country-turnover guarantee or comprehensive guarantee (all foreign customers in one, several or all coverable countries) Guarantee for stock in commission, machinery-deployment guarantee, advance guarantee Reinsurance of contract of an export credit or export credit insurance institution (reinsurance guarantee) Guarantee for the acquisition of accounts receivable from export transactions by domestic or foreign credit institutions Market development guarantee Aval endorsement (guarantee by aval) of bills of exchange OeEB Oesterreichische Entwicklungsbank AG (Austria s development bank) CC Conditional commitment to issue a guarantee (not counted against OeKB s aggregate guarantee exposure limit) Revolving guarantees Aval endorsements Revolving guarantees mainly G 8 reinsurance guarantees are recognised as newly issued guarantees only in the year of their initial issue. Endorsements (guarantees by aval) of bills of exchange, issued to the exporter s bank, are another type of cover provided under the Export Guarantees Act. Aval endorsements (also known simply as avals) are commitments to assume liability for the payment of the obligation of the issuer or acceptor of a bill of exchange that is issued by a credit institution to finance export transactions or Austrian companies investments abroad. Avals thus facilitate funding for exporters, outward direct investors and domestic investments connected with export orders. The exporter s bank has to file the applications for aval endorsements and arrange the financing. 10 Export Services Annual Review 2015

11 The guarantees issued by the Republic of Austria for the OeEB in accordance with section 9 of the AusfFG, inter alia for the more long-term financing of sustainable investment in developing countries, are among the types of guarantees provided for by the AusfFG. These guarantees are, unless otherwise indicated, shown as guarantees issued for the OeEB in the new guarantees issued and guarantees outstanding in the following tables. Guarantees issued for OeEB Since 2014, the Republic of Austria has also made use of the possibility defined in section 7 (3) of the AusfFG to use a part of the funds of the Republic earmarked for the Export Guarantees Act for the development-related financing of selected OeEB projects. New guarantees issued and aggregate guarantee exposure by type of guarantee New guarantees issued in 2014 Guarantees outstanding (after measurement) at 31 December 2014 New guarantees issued in 2015 Guarantees outstanding (after measurement) at 31 December 2015 Count m % Count m % Count m % Count m % G % 648 2, % % 689 1, % G % % % % G % 678 5, % % 680 5, % G % 161 3, % % 146 2, % G % % G % % G % % % % G % 38 1, % % 34 1, % G % % % % Total G 1 to G , % 1,774 13, % 497 1, % 1,786 11, % Aval endorsements (AE) 194 1, % 1,667 14, % 225 1, % 1,650 13, % Guarantees issued for OeEB % % % % Total 676 3, % 3,502 28, % 738 3, % 3,509 26, % Increases to individual credit limits within comprehensive policies Conditional commitments (CC) 195 2, , , ,751 Export Services - Annual Review

12 Guarantee business by credit period of transactions guaranteed In the new guarantee contracts issued, most of the transactions underlying the guarantees have credit periods of five years or less. By contrast, most of the outstanding guarantees represent long-term contracts, as they include large guarantees for exports to developing countries, investment guarantees and guarantees for debt-rescheduling. The outstanding guarantee with the longest term covers a credit period ending in Credit periods of transactions guaranteed Credit period in years Single-contract policies Revolving policies Single-contract policies Revolving policies Count m Count m Count m Count m Guarantee contracts issued in 2014 Guarantee contracts issued in 2015 Up to , More than 1 and up to More than 5 and up to , , More than Total 572 3, , Guarantees outstanding (after measurement) at 31 Dec 2014 Guarantees outstanding (after measurement) at 31 Dec 2015 Up to , , , ,201 More than 1 and up to , , , ,065 More than 5 and up to , , More than , , Total 2,673 21, ,922 2,688 19, , Export Services Annual Review 2015

13 Guarantee business by region and country The following tables show the analysis, by region and country, of newly-issued guarantee contracts and of aggregate guarantee exposure (guarantees outstanding). Since 2012 the outstanding guarantees have been adapted to the amended accounting regulations. This concerns, inter alia, the evaluation of Austrian federal government-backed guarantees and of federal government receivables issued in a foreign currency. The G 6 and G 8 revolving guarantees are included under comprehensive policies in the following table New guarantee contracts issued and aggregate guarantee exposure by region. In the table New guarantee contracts issued and aggregate guarantee exposure by region and country the country data excludes comprehensive policies, aval endorsements, and guarantees issued for OeEB. All data excludes conditional commitments. New guarantee contracts issued and aggregate guarantee exposure by region New guarantee contracts issued in 2014 Guarantees outstanding (after measurement) at 31 December 2014 New guarantee contracts issued in 2015 Guarantees outstanding (after measurement) at 31 December 2015 Count m % Count m % Count m % Count m % Europe (incl. Turkey, CIS) % 702 5, % % 699 4, % EU % % % % North America % % % % Latin America % % % % Asia % 703 4, % % 690 4, % Australia and Oceania % % % Africa % % % % Comprehensive policies (CP) , % , % Total guarantees 466 1, % 1,774 13, % 497 1, % 1,786 11, % Aval endorsements (AE) 194 1, % 1,667 14, % 225 1, % 1,650 13, % Guarantees issued for OeEB % % % % Total 676 3, % 3,502 28, % 738 3, % 3,509 26, % Of which (excl. CP, AE, OeEB): OECD % 252 1, % % 291 1, % Non-European developing countries % 1,009 5, % % 1,025 5, % OPEC % 150 1, % % 134 1, % Export Services - Annual Review

14 New guarantee contracts issued and aggregate guarantee exposure by region and country thousand Guarantee contracts issued in 2015 Guarantees outstanding (after measurement) at 31 Dec 2015 Countries with guarantees outstanding Of which rescheduling Of which rescheduling over 25 million Total guarantees Total guarantees Total 3,758,009-26,209, ,788 Europe 932,529-4,802, ,072 Albania 25, ,953 - Belarus 3, ,771 - Bosnia and Herzegovina 12, ,230 79,035 Bulgaria 3,984-78,603 - Croatia 1, ,757 - Germany 5,833-33,898 - Italy 34,289-50,250 - Moldova 8,653-32,596 - The Netherlands 228, ,043 - Romania ,167 - Russia 422,753-2,487,325 - Serbia 28, ,630 34,941 Spain 3,883-60,987 - Turkey 89, ,808 - Ukraine 4, ,767 - North America 46,188-66,656 - USA 45,975-49,367 - Latin America 157, ,637 6,583 Brazil 74, ,554 - Chile 3,222-38,323 - Honduras 6,082-60,455 - Mexico 51,056-60,345 - Trinidad and Tobago ,390 - Uruguay ,121 - Asia 458,407-4,074, ,777 Bhutan ,959 - China (incl. Hong Kong) 187,390-1,517,283 - Georgia 20,751-47,373 - India 7, ,914 - Indonesia 33, ,900 98,727 Iran ,513 - Kazakhstan ,050 - Laos 33,142-56,816 - Malaysia ,981 - Mongolia 33,000-33,000 - Pakistan 41,717-76,437 24,192 Philippines ,578 - Saudi Arabia 2, ,270 - South Korea ,595 - Sri Lanka ,050 - Taiwan 32,730-35,774 - Vietnam 17, ,339 2,859 Africa 110, ,462 60,356 Egypt 35, ,470 55,524 Ethiopia 18,993-72,111 - Gabon ,468 - Ghana ,594 - Kenya 6,670-44,964 3,916 Malawi 35,929-34, Export Services Annual Review 2015

15 Debt rescheduling Sovereign debt is rescheduled through agreements on that portion of a debtor country s external debt relating to sales of goods and services. They are insured by the creditor countries through their respective export guarantee system or they are categorised as governmental development aid. In the so-called Paris Club, federally guaranteed credits and foreign aid debt are renegotiated and rescheduled. The Paris Club is formed, when necessary, from the group of offical creditors to which 20 regularly participating countries belong. In addition, representatives of the international financial institutions take part in the sessions which are chaired by France. Austria is represented by the Federal Ministry of Finance and OeKB as consultant. The aim of the Paris Club is to restore the credit-worthiness of highly-indebted countries in the long-term by extending the repayment obligations to this public-creditor community. This restoration of credit quality is to be achieved by the equal participation of all creditor nations. The rescheduling typically lengthens the repayment period for the debt, and market interest rates are applied. Paris Club Conventional rescheduling A multilateral framework is implemented bilaterally with each creditor country. Since 1988 debt-relief ranging from 33% to 80% has been progressively accepted for the poorest borrower nations. In June 1999 the so-called Enhanced HIPC (Heavily Indebted Poor Countries) Initiative was adopted, which allows debt reduction of 90% or more for highly indebted poor countries, primarily in Africa. As part of an EU-wide initiative, Austria bilaterally grants 100% debt relief to these countries. Debt reduction concessional rescheduling Business in 2015 A comprehensive debt-rescheduling regulation covering Cuba s overdue payments since the 1980s was agreed between Cuba and a group of public creditors consisting of the 14 Paris Club member states. The regulation comprises the complete repayment of the overdue principal and interest payments over a period of 18 years as well as a successive cancellation of overdue late interest in accordance with the payments made in this period. At 31 December 2015, recoverable claims of the Republic of Austria for defaulted-on rescheduled debt-repayments amounted to 377 million, of which 232 million represented overdue principal and 145 million constituted overdue interest. By 31 December 2015, cumulative receipts under rescheduling amounted to principal payments of 8,711 million and interest payments of 3,424 million. The movement in claims relating to rescheduling guarantees is shown in the table Claims paid in the next section. Export Services - Annual Review

16 Rescheduling guarantees by region and by type of guarantee Gurantees outstanding (after measurement) at 31 December 2014 Number of countries m % Gurantees outstanding (after measurement) at 31 December 2015 Number of countries m % Europe (incl. Turkey, CIS) % % Latin America % % Asia % % Africa % % Total % % Of which Non-European developing countries % % OPEC % % G G Guarantee system income and expenses, and claims paid by region and country This section gives an overview of income and expenses arising from export guarantees of the Republic of Austria under the Export Guarantees Act, both in the year under review and cumulatively since In accordance with the international rules covering premiums, the income should cover losses and administrative costs long-term, thus enabling the process to be self-financing. The amount of claims paid by the Republic of Austria under guarantees pursuant to the Export Guarantees Act must be viewed in the context of the total cumulative volume of guarantee contracts issued. From the inception of the guarantee programme in 1950 to the end of 2015, the value of guarantees issued was billion. In this cumulative total, revolving guarantees are included at their nominal amounts. 3,647 million of loans and advances have been written off due to uncollectibility since Debt waived as part of international initiatives writing off debt is included in this figure. In addition there was debtrelief in the amount of 1,939 million in the form of interest reductions as part of international agreements. In total, since 1950, the above have accounted for 2.7% of guarantee contracts issued. At 31 December 2015, besides the Austrian government s recoverable claims of 935 million, there were interest receivables on arrears in connection with debtrescheduling for Iraq, Argentina and Myanmar in the amount of million. In 2015 the guarantee programme income exceeded net costs by 142 million. 16 Export Services Annual Review 2015

17 Income and expenses from guarantees under the Export Guarantees Act million Premium income 167 5, , ,436 Interest income less other expenses 40 1, , ,298 Subtotal 207 6, , ,733 Recoveries on claims paid 72 3, , ,624 Total (+) 279 9, , ,357 Claims paid, incl. HIPC (-) 122 8, , ,207 Guarantee programme result before interest rate relief , , ,151 granted (+/-) Net interest rate relief granted (-) 2 1, , ,939 Net guarantee programme result after interest rate relief incl. HIPC (+/-) 1, As a percentage of cumulative guarantee contracts issued 0.05% 0.03% 0.10% As a percentage of guarantees outstanding 0.29% 0.24% 0.81% Net guarantee programme result after interest rate relief excl. HIPC (+/-) ,077 Recoverable claims (including HIPC) at 31 December Impairment losses on recoverable claims Guarantee system rate of return (%) % 101.4% 15.7% 98.9% 13.9% 96.9% Interest rate relief granted (-) 2 2, , ,514 Support from federal budget (+) Net interest rate relief granted (-) 2 1, , ,939 Amounts written off as unrecoverable, incl. HIPC (-) 21 3, , ,647 Total (-) 23 5, , ,586 As a percentage of cumulative guarantee contracts issued 2.77% 2.73% 2.70% Guarantee contracts issued 3, ,604 3, ,446 3, ,204 Guarantees outstanding at 31 December 31,364 31,364 28,467 28,467 26,210 26,210 Provisions for guarantees coverage surplus (+); notional disposal (-) 2 Restructuring of claims paid under the HIPC Initiative in previous reporting periods affects the comparability of amounts over time. 3 Claims paid including net interest rate relief, less recoveries, as a percentage of the combined balance of premium income, net interest and other expenses Export Services - Annual Review

18 Claims paid, by region In the following tables currency differences reflected in the measurements may affect the comparability of amounts over time. million Claims paid Claims Recoveries on claims Amounts written off Recoverable claims authorised paid as unrecoverable after measurement but not yet paid Dec Dec 2015 Europe (incl. Turkey, CIS) 21 2, , EU 0 1, North America Latin America Asia 20 2, , Australia and Oceania Africa 30 2, , , Comprehensive policies Total G 1 to G , , , Commercial risks 21 1, Political risks , , , Exchange risk guarantees (G 10) Total G 1 to G , , , Aval endorsements (AE) Guarantees issued for OeEB Total 81 8, , , Of which 2 OECD 1 1, Non-European developing countries 53 5, , , OPEC 46 2, , HIPC Initiative, total Comparative total , , , Comparative total , , , Comparative total , , , Of which for debt rescheduling guarantees Europe 1 1, , Latin America Asia 0 1, Africa 0 1, , Total 1 4, ,355-1, Comparative total , ,335-1, Comparative total , , , Comparative total , , , Including claims paid for political risks under debt rescheduling guarantees. 2 Excluding the claims paid for exchange risks and aval endorsements, as these are not directly attributable to specific regions or country groups. The claims paid for comprehensive policies are attributed to the OECD. 18 Export Services Annual Review 2015

19 The amounts in the following table include claims from debt-rescheduling guarantees. Country and regional data exclude claims not directly attributable to countries with reinsurance guarantees, exchange risk guarantees and aval endorsements. Claims paid, by region and country thousand Claims paid Recoveries on claims paid Amounts written off as unrecoverable Claims authorised Recoverable claims but not after measurement yet paid Countries with total claims paid over 25 million Dec Dec 2015 Total 80,773 8,206,720 58,458 3,624,079 40,424 3,647, ,797 38,747 Europe 21,333 2,348,996 2,128 1,432,508 4, , ,186 32,000 Bulgaria - 112, ,236-38, France - 36,538-6,468-30, Germany - 113, ,126-98,837 1,046 - Italy - 97, , ,355 1,113 - Poland - 963, , ,860 1,342 2 Russia 19, , ,843 3, ,560 16,890 31,094 Serbia , ,038-70, Switzerland - 25,834-5,624-20, Turkey - 55,724-42, ,479 3,035 - Ukraine , ,982 1,025 1,427 85, United Kingdom - 28, ,610-21, North America - 40,420-7,951-32, USA - 27,912-5,964-21, Latin America 2, ,835 2, , , , Argentina - 112,775 1,909 50,594-29,564 32,616 - Bolivia - 68,595-4,766-63, Brazil 1,988 46, , ,457 8, Cuba - 99, , ,523 - Venezuela - 50,620-28,379-22, Export Services - Annual Review

20 thousand Claims paid Recoveries on claims paid Amounts written off as unrecoverable Claims Recoverable authorised claims but not after measurement yet paid Countries with total claims paid over 25 million Dec Dec 2015 Asia 20,244 2,423,624 21, , ,028, ,292 6,055 China (incl. Hong Kong) - 103,154-57,337-45, Georgia - 94,170-49,337-44, India , ,431-9,517 23, Indonesia (47) 136, ,812 (1) 55, Iran 15, ,131 4,285 94,260-70, ,803 5,987 Iraq - 959,477 16, , , ,334 - Lebanon - 74,935-60,111-14, Myanmar - 52,298-17, ,824 - North Korea (DPR) - 231,795-80,579-6, ,589 - Philippines - 78,220-74,394-3, Saudi Arabia - 59,481-6,182-53, Syria - 25,887-18,761-6, Thailand - 42, , United Arab Emirates , , ,796 5,735 - Vietnam - 26,005-15,947-10, Africa 30,130 2,497,728 28,827 1,005,329 32,740 1,416,001 76,414 - Algeria - 90,258-88,061-2, Angola - 51,319-49,657-1, Cameroon - 472,446-13, , Congo DR (former Zaire) - 82,556-15,982-66, Cote d'ivoire - 96,662-5,359-91, Egypt ,539 22, ,877-42,598 1,079 - Kenya - 71, ,901-1, Libya 29, ,223 5,529 11,581 32,740 38,404 67,238 - Madagascar - 60,951-9,345-51, Morocco - 120, ,105-3, Nigeria - 367, , , Sudan - 296,446-7, , Tanzania 30 46, ,546-40, Togo - 45,149-14,979-30, Zambia - 29,530-13,235-16, Export Services Annual Review 2015

21 Oesterreichische Kontrollbank AG Export Financing Scheme The OeKB Export Financing Scheme offers Austrian exporters financing solutions for a broad spectrum of export business and cross-border investment activities. The credits to banks require a guarantee for the transaction or right underlying the financing. The guarantee must comply with the provisions of the Export Financing Guarantees Act (AFFG). In the course of issuing guarantees, sustainability issues are a major point to be considered. In addition, both the rights arising from the guarantees and the underlying receivables (export or other receivables) must, as a rule, be assigned as security. Requirements The maximum repayment term for commercial export credits that fall within the scope of the OECD Arrangement is generally 10 years. Longer maximum terms are possible for conventional power plants (a maximum of 12 years), project finance (a maximum of 14 years) and renewable energy, climate protection and water projects (a maximum of 18 years). OeKB s Export Financing Scheme is a refinancing source for domestic and foreign credit institutions. To be eligible they must meet OeKB s creditworthiness criteria, fulfil the legal requirements regarding the transactions to be financed and satisfy OeKB s conditions for uniform financing procedures. The uniform financing procedure conditions particulary apply to collateral management. In issuing credits under the Export Financing Scheme, OeKB observes the applicable guidelines, directives and regulations of international agreements on the Organisation for Economic Cooperation and Development (OECD), the EU and the Berne Union. International environment Export Services - Annual Review

22 Business activity covered by the Export Financing Scheme The following table presents an analysis of the turnover during the year. In the year under review, the loan repayments received more than covered loan disbursements ( 5,265 million versus 4,051 million). Business activity under the Export Financing Scheme - lending operations million Financing contracts New contracts issued 1 7,085 5,124 3,173 5,007 Contracts withdrawn 1, Repayments received 10,381 7,520 5,216 5,265 Thereof on revolving credits Loan funds disbursed 6,846 4,724 2,771 4,051 Conditional commitments (CC) New conditional commitments issued CC converted into contracts CC withdrawn Including conversions of conditional commitments into financing contracts, and including rescheduled debt. 22 Export Services Annual Review 2015

23 Credit commitments and disbursements under the Export Financing Scheme Outstandings and net changes under the Export Financing Scheme - lending operations Outstanding at Outstanding at Outstanding at Outstanding at million 31 Dec 2012 Net change 31 Dec 2013 Net change 31 Dec 2014 Net change 31 Dec 2015 Financing contracts 27,703-3,326 24,377-2,529 21, ,108 Conditional commitments Total commitments 28,054-3,422 24,632-2,545 22, ,369 Disbursements 24,827-2,796 22,031-2,445 19,587-1,214 18,373 The outstanding loan agreement with the longest repayment period expires in Schedule of disbursements payable million Financing Conditional contracts commitments Total By end of , ,245 By end of By end of By end of After Disbursements 2, ,997 Schedule of repayments receivable million Financing Conditional contracts commitments Total By end of ,649-3,649 By end of ,170-2,170 By end of ,594-2,594 By end of ,509-1,509 By end of ,151-1,151 By end of By end of By end of By end of After 2024 (up to 2046) 7, ,450 Repayments 21, ,369 Export Services - Annual Review

24 Export financing business by region and country Commitments and disbursements outstanding under the Export Financing Scheme, by region Outstanding at 31 December 2014 Outstanding at 31 December 2015 Commitments Disbursements Commitments Disbursements million % million % million % million % Europe (incl. Turkey, CIS) 3, % 2, % 3, % 2, % Incl. conditional commitments 3, % 3, % EU % % % % North America % % % % Incl. conditional commitments % % Latin America % % % % Incl. conditional commitments % % Asia 2, % 2, % 2, % 2, % Incl. conditional commitments 2, % 2, % Australia and Oceania 1 0.0% 1 0.0% 0 0.0% 0 0.0% Incl. conditional commitments 1 0.0% 0 0.0% Africa % % % % Incl. conditional commitments % % Comprehensive policies (CP) % % % 8 0.0% Incl. conditional commitments % % Subtotal 7, % 6, % 6, % 5, % Incl. conditional commitments 7, % 7, % Aval endorsements (AE) 2 14, % 13, % 14, % 12, % Incl. conditional commitments 14, % 14, % Total 21, % 19, % 21, % 18, % Incl. conditional commitments 22, % 21, % Of which (excl. CP and AE): OECD % % 1, % 1, % Non-European developing countries 3, % 3, % 3, % 3, % OPEC % % % % 1 Financed export contracts covered by revolving comprehensive and reinsurance guarantees (CP). 2 Financed export contracts and short-term export credit lines covered by aval endorsements (AE). 24 Export Services Annual Review 2015

25 New commitments and disbursements under the Export Financing Scheme, by region Movements in 2014 Movements in 2015 New commitments issued Loan funds disbursed New commitments issued Loan funds disbursed million % million % million % million % Europe (incl. Turkey, CIS) % % 1, % 1, % Incl. conditional commitments % 1, % EU % % % % North America % % 0 0.0% 2 0.1% Incl. conditional commitments % 0 0.0% Latin America % % % % Incl. conditional commitments % % Asia % % % % Incl. conditional commitments % % Africa % % % % Incl. conditional commitments % % Comprehensive policies (CP) 2 0.0% 2 0.1% 4 0.1% 4 0.1% Incl. conditional commitments 2 0.0% 4 0.1% Subtotal 1, % 1, % 1, % 1, % Incl. conditional commitments 1, % 2, % Aval endorsements (AE) 2, % 1, % 3, % 2, % Incl. conditional commitments 2, % 3, % Total 3, % 2, % 5, % 4, % Incl. conditional commitments 3, % 5, % Of which (excl. CP and AE): OECD % % % % Non-European developing countries % % % % OPEC % % % % Export Services - Annual Review

26 Movements and outstandings under the Export Financing Scheme, by region and country thousand Movements in 2015 Outstanding at 31 December 2015 Countries with total commitments over 25 million New commitments issued Loan funds disbursed Commitments Disbursements Total 5,006,651 4,050,601 21,107,615 18,372,961 Europe 1,387,845 1,008,725 3,001,133 2,449,273 Albania 2,999 15,121 68,453 60,862 Belarus 15,993 16,351 49,408 47,183 Belgium - 5,567 44,938 24,945 Bosnia and Herzegovina - 8, , ,142 Bulgaria 10,696 10,696 69,288 69,288 Croatia 18,507 18,810 87,578 87,393 Italy 101,086 90, ,978 99,075 Luxembourg 40,535 18, ,737 73,998 Moldova 6,005 2,402 26,771 23,168 The Netherlands 236, , , ,411 Romania 4,703 5,698 98,506 94,903 Russia 671, ,102 1,268, ,537 Serbia 11,000 11,000 65,068 65,068 Switzerland ,906 64,906 Turkey 106,062 53, , ,384 Ukraine 96,726 96, , ,090 United Kingdom 56,589 56,589 51,786 51,786 Latin America 135,545 75, , ,711 Brazil 20,318 9,725 35,047 25,897 Chile 31,385 6,564 30,586 6,467 Cuba ,441 6,583 Honduras 34,569 5, , ,698 Panama 27,586 7,785 58,786 26,637 Trinidad and Tobago ,702 28,702 Venezuela - 13,290 70,739 43,336 Asia 384, ,859 2,757,710 2,478,171 Armenia 13,958 21,588 46,302 45,602 Azerbaijan 6,302 3,341 26,543 12,765 Bahrain - 10,344 28,505 28,505 Bhutan ,187 54,187 China (incl. Hong Kong) 58,435 23, , ,078 India 54, ,311 33,941 Indonesia 19,757 8, , ,073 Korea Rep , ,740 Laos 115,777 65, ,915 83,507 Mongolia 35,846 27,869 44,810 36,832 Pakistan ,940 27,940 Philippines , ,306 Sri Lanka 2,961 9, ,783 97,387 Vietnam 22,071 32, , ,586 Africa 50,052 63, , ,980 Egypt 7,500 2, ,423 81,623 Gabon 10,009 44, , ,484 Ghana - 6, , ,118 Nigeria 27,599-28,998 1,442 South Africa 1, ,633 31, Export Services Annual Review 2015

27 Tied financial credits, purchases of accounts receivable and other types of financing The following tables show the individual share which tied financial credits and purchases of accounts receivable have in the total volume of export-credit refinancing administered by OeKB. Export sales made on credit terms can be financed by having the exporter allow deferred payment or as a loan extended to a foreign buyer. The exporter granting a supplier credit to a foreign buyer can obtain funding for this from a credit institution. When a bank extends a tied financial credit or purchases accounts receivable, this leads to a reduction in the exporter s balance sheet. Commitments and disbursements outstanding under the Export Financing Scheme, by type of financing Outstanding at 31 December 2014 Outstanding at 31 December 2015 Commitments Disbursements Commitments Disbursements million % million % million % million % Tied financial credits 3, % 3, % 3, % 3, % Incl. conditional commitments 4, % 4, % Foreign investments 1, % 1, % % % Incl. conditional commitments 1, % % Purchases of accounts receivable % % % % Incl. conditional commitments % % Other financing contracts 1, % 1, % 1, % 1, % Incl. conditional commitments 1, % 1, % Subtotal 7, % 6, % 6, % 5, % Incl. conditional commitments 7, % 7, % Aval endorsements 14, % 13, % 14, % 12, % Incl. conditional commitments 14, % 14, % Total 21, % 19, % 21, % 18, % Incl. conditional commitments 22, % 21, % Export Services - Annual Review

28 New contracts issued and amounts disbursed under the Export Financing Scheme, by type of financing Movements in 2014 Movements in 2015 New commitments issued Loan funds disbursed New commitments issued Loan funds disbursed million % million % million % million % Tied financial credits % % % % Incl. conditional commitments % % Foreign investments % % % % Incl. conditional commitments % % Purchases of accounts receivable % % % % Incl. conditional commitments % % Other financing contracts % % 1, % % Incl. conditional commitments % 1, % Subtotal 1, % 1, % 1, % 1, % Incl. conditional commitments 1, % 2, % Aval endorsements 2, % 1, % 3, % 2, % Incl. conditional commitments 2, % 3, % Total 3, % 2, % 5, % 4, % Incl. conditional commitments 3, % 5, % Interest rates in the Export Financing Scheme Financing on commercial terms Financing based on combined floating and fixed interest rates The financing for supplier and buyer credits and investment loans is extended at variable and fixed interest rates. The floating rate is determined by OeKB quarterly. It is based on the average cost for OeKB of funding itself in the market. The floating-rate portion of the credit is repaid first; the financing of the longer-term part is at a fixed interest rate. Financing based on EURIBOR OeKB also offers financing of supplier and buyer credits and investments purely at a floatingrate. The financing is based on the 3- or 6-month EURIBOR plus a margin dependent on the duration. 28 Export Services Annual Review 2015

29 Kontrollbank Credit Line for short-term export contracts The Kontrollbank Credit Line (KRR) is for large enterprises wishing to finance short-term, revolving export business. The financing is based on avals guaranteed by the Republic. OeKB publishes its interest rate for this type of financing quarterly. Small and medium-sized enterprises are serviced by Österreichischer Exportfonds GmbH. Financing in foreign currencies Financing of export business and investments in foreign currencies is also offered at floating or fixed interest rates which are quoted separately for each contract. Fixed rate financing based on CIRR can be offered on demand. For further details see Glossary The current interest rates of the Export Financing Scheme can be viewed on the Internet at Soft Loans In addition to export finance facilities on commercial terms, the Austrian export industry can benefit from financing on concessional terms. Soft loans adhere to the soft-loan policy pursued by the Federal Ministry of Finance (BMF) within the framework of the OECD Arrangement; they support Austrian exporters in the face of international competition and aim to contribute to the sustainable development of receiver countries. Conditions for soft-loan financing depend on the receiver country and are, as a rule, set annually. Austria s Export Financing Scheme is also described in the so-called Yellow Book published by the OECD. Sources and uses of funds The total of all positions within the Export Financing Scheme in the financial year was 39,391 million. Of this amount, 4,051 million represented loan disbursements. 35,340 million was used largely for the repayment of loan liabilities. In the reporting period, 5,265 million (13%) of the funds used came from debt service payments received on export credits. New borrowing amounted to 34,126 billion. Of this sum 10,795 million in Euros and various foreign currencies was raised in Austria and 23,331 million was sourced abroad. The financing volume under the Export Financing Scheme increased by 13% compared to Export Services - Annual Review

30 Guarantees of the Republic of Austria under the Export Financing Guarantees Act (AFFG) OeKB funds itself on the international and domestic financial markets through the issue of global bonds, liquid benchmark-transactions, private placements, structured medium-term notes and short-term money market instruments. In 2015, long-term transactions totalling 4.1 billion were placed domestically and abroad. Notable issues were three US dollar global bonds in the amount of USD 3.5 billion and an AUD transaction including three taps totalling AUD 300 million. In addition, three increases in a GBP issue totalling GBP 200 million as well as USD private placements amounting to USD 550 million were offered. OeKB bonds are guaranteed unconditionally and explicitly by the Republic of Austria and are rated Aaa/AA+ by Moody s and Standard & Poor s, with short-term debt rated P1 and A1+ respectively. The AFFG regulates the granting of guarantees by the Federal Minister of Finance in favour of the creditors of OeKB in all export-financing related matters. The Federal Minister of Finance is also authorised to guarantee repayment to OeKB of possible foreign exchange losses incurred by credit operations. The aggregate exposure limit is 45 billion. OeKB pays a guarantee fee to the Federal Ministry of Finance. Further provisions of the AFFG are: the maximum maturity the percentage of aggregate exposure arising from the guaranteed borrowings the maximum amount for any single credit transaction the calculation method for adding individual guarantees to the aggregate guarantee exposure limit. 30 Export Services Annual Review 2015

31 Guarantees under the Export Financing Guarantees Act Principal Exchange Guarantees in million for amounts Interest 2 risk Total Additions in , ,585 Reductions in , ,309 Net change in 2014 (2,689) - (35) (2,724) Outstanding at 31 December ,816-3,239 26,055 Of which transactions in Euro 2,700-1,423 4,123 in foreign currencies 20,116-1,816 21,932 Unused limit (total limit of 45,000 million) 1 18,945 Additions in , ,767 Reductions in , ,508 Net change in 2015 (1,775) - 34 (1,741) Additions from 1967 to ,721 2,776 12, ,407 Reductions from 1967 to ,680 2,776 9, ,093 Net change from 1967 to 2015 = 21,041-3,273 24,314 [i.e., Outstanding at 31 Dec 2015] Of which transactions in Euro 1,500-1,398 2,898 in foreign currencies 19,541-1,875 21,416 Unused limit (total limit of 45,000 million) 20,686 1 Federal Law Gazette I no. 144/2008, no. 122/2012 and no. 40/ In accordance with the 1980 Amendment to the Act, interest is no longer counted against the aggregate exposure limit. When calculationg the aggregate exposure, 10% is added to issues in foreign currencies to account for exchange rate risk. Foreign currencies are converted into Euro at the reference rate of the European Central Bank on the day on which the guarantee takes effect (see section 2 of the Export Financing Guarantees Act). For OeKB s short-term borrowing under a revolving credit facility, the monthly net changes in disbursements outstanding are recognised as additions or reductions. Guarantees as reflected in the Austrian government financial statements million Additions 16,684 17,876 22,671 Reductions 21,408 20,051 22,998 Foreign currency translation differences 29 (244) (658) Ending balance outstanding (after translation effects) at 31 December 27,567 25,149 24,164 Of which transactions in euro 5,850 4,210 2,600 in foreign currencies 21,717 20,939 21,564 Export Services - Annual Review