Belgium. Country Profile

Transcription

1 Belgium Country Profile

2 Contents Country Overview 1 Clearing Systems 4 Foreign Controls 6 Taxation 7 Investment Opportunities 8 Citi Solutions and Services 9

3 Country Overview Banking Holidays in Belgium New Year s Day Good Friday Easter Monday Labour Day Ascension Day Whit Monday Flemish Community Day Independence Day Assumption French Community Holiday All Saints Day Armistice Day German Community Holiday Christmas Day Boxing Day January 29 March 01 April 1 May 9 May 20 May 11 July 21 July 15 August 27 September 1 November 11 November 15 November 25 December 26 December Key Facts Capital City Brussels Population 10,438,353 (July 2012 est.) Currency Euro Currency SWIFT Code Euro Exchange Rate USD (2011 est.) GDP $37,800 (2011 est.) GDP Growth Rate 1.8% (2011 est.) Exports $332.3 billion (2011 est.) Imports $342.3 billion (2011 est.) Inflation Rate 3.5% (2011 est.) Source: This modern, open, and private enterprise-based economy has capitalised on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Industry is concentrated mainly in the more heavily-populated region of Flanders in the north. With few natural resources, Belgium imports substantial quantities of raw materials and exports a large volume of manufactures, making its economy vulnerable to volatility in world markets, yet also able to benefit from them. Roughly three-quarters of Belgium s trade is with other EU countries, and Belgium has benefited most from its proximity to Germany. In 2010 Belgian GDP grew by 2.1%, the unemployment rate rose slightly, and the government reduced the budget deficit, which had worsened in 2008 and 2009 because of large scale bail-outs in the financial sector. Belgium s budget deficit decreased from 6% of GDP to 4.8% in 2010, while public debt was just under 100% of GDP. Belgian banks were severely affected by the international financial crisis with three major banks receiving capital injections from the government. An ageing population and rising social expenditures are mid-to long-term challenges to public finances. Belgium Country Profile 1

4 Country Overview Banking System Banks in Belgium Located in the city of Brussels, the National Bank of Belgium, commonly referred to as the Nationale Bank van België (in Dutch), is the national or central bank of the country of Belgium. Since Belgium s joining of the European Union in 1999, the bank has been part of the European System of Central Banks (governed by the European Central Bank), as well as taking on the European currency of the Euro, otherwise known as being part of the Eurozone. The banking system was first set up on 5 May 1850 and since then until 1999 had operated as an anonymous corporation and played a big factor in monetary and economic policies of the country, as well as the general economic stability of Belgium. After Belgium joined Europe in 1999 it was taken over by the European Central Bank, and although it still exists as its own entity many of its functions and operations are controlled and governed by the European Central Bank. Location of Financial Investment Centers Brussels has become a leading banking and financial center in the euro area, as financial institutions and companies increasingly prefer to be located in the proximity of the EU institutions. Citi in Belgium Citi has had a presence in Belgium since 1919 and opened its headquarters in Brussels in In 1969, Citibank took over Crédivit Bank and Financial Bank. Crédivit merged with Financia to form Famibank in After taking over Banque Copine and Banque Sud Belge, Banque Sud Belge merged with Famibank, creating Citibank Belgium in We now have a consumer and corporate customer base of more than 560,000 individual accounts and businesses. Our 950 employees proudly serve their local communities every day, providing from our 212 branches a wide range of consumer products and banking services, including current and savings accounts, investment products, credit, credit cards and insurance to our valued customers. Head Office Address Citibank International Plc 263G, Boulevard Général Jacques Brussels, B-1050 Belgium Tel: Fax: Location of Branches One Citibank International Plc. branch located in Brussels (address as above) 2 Belgium Country Profile

5 Country Overview Services Offered to Citi Clients Treasury Cash Management Liquidity Management Investments Loans Trade Services Buyer and Supplier Financing Agency and Trust Fund Services Direct Custody and Clearing Securities Lending Corporate Finance Belgium Country Profile 3

6 Clearing Systems There are currently three domestic interbank payment systems in Belgium: High Value TARGET2: (Trans-European Automated Real-time Gross settlement Express Transfer system for EU/EEAwide Euro payments) is the latest version of the Pan European Real Time Gross Settlement (RTGS) system which transformed the decentralised network of payment systems into a true pan-european payment system with a single technical clearing platform. Three Eurosystem central banks provide an integrated market solution the Banca d Italia, the Banque de France and the Deutsche Bundesbank which jointly provide the single technical infrastructure, the Single Shared Platform, of TARGET2 and operate it on behalf of the Eurosystem. Retail CEC Centre for Exchange and Clearing (Centre d Echange ET de Compensation): CEC is the net settlement system for automated retail payments in Belgium. Retail payments include all ordinary payments between consumers, as well as between companies and consumers up to a limit of EUR 500,000. Since the introduction of SEPA in January 2008, the corporate business of Citi in Belgium, follows the central strategy for EUR payments in Europe, i.e. paying out of the Citi UK based EUR account (as for high value) and only file payments originating from IMPS (Citi regional platform) continue to move through the CEC (local ACH). The branch continues though to receive incoming low value transfers from the CEC via file transmission in the afternoon. Larger amounts and transfers between banks are processed within TARGET. The system also caters for cheque collections (up to EUR 50) and direct debits.the NBB acts as operational manager of the system and as chairman of the Board of Directors, responsible for decisions on new rules. CEMUC This is the net settlement system for manually exchanged payments. The overall volume of the transactions processed is marginal with respect to the total volume of the interbank exchanges (Target2, CEC and Clearing House). The prime operations are non-standardised cheques (essentially cheques of non-resident origin and cheques over EUR 50,000 which necessitate CBR handling), postal orders and some commercial paper transactions. The net balances of each participant are settled at the end of day on a current account at the NBB. The system was officially known as the Clearing House of Belgium, which is located in the NBB. For further details of the clearing systems please refer to section of the payments systems at the website of the Belgian National Bank URL: 4 Belgium Country Profile

7 Clearing Systems Clearing Streams Clearing Stream (CS) Payment Type Payment Instruments CEC Paper (< 50,000) Cheques Other paper based instruments CEMUC Paper (> 50,000) Cheques Other paper based instruments Consumer Banks (CEC/CEMUC) Low Value Domestic Funds Transfer (ACH, GIRO, DFT, GIRO, Wire) Cross-border Funds Transfer Payroll, Standing Order TARGET2 via Citi London High Value Special Non-urgent Domestic Payments Belgium Credit Notes ELLIPS Banque Nationale de Belgique (BNB) High Value Electronic Domestic Funds Transfer (ACH, GIRO, DFT, GIRO, Wire) Cross-border Funds Transfer Citi London (Indirect) SEPA Access to Step2 for SEPA payments via Citi London Funds Availability Schedule Cut-off Time (Local Time) Funding Date Client DR/CR Date Client Value Date Local Currency Electronic Transfers 10:00 AM Value Date Value Date Same Day Local Currency Other Banks 10:00 AM Value Date Value Date Same Day Local Currency Book-to-book 10:00 AM Value Date Value Date Same Day Foreign Currency Transfers 2:00 PM Currency Dependent Value Date D+1 Cheque Deposit Next Day Value Date Same Day Belgium Country Profile 5

8 Foreign Controls Local currency is freely convertible domestic and off-shore. 6 Belgium Country Profile

9 Taxation Transfer Pricing Considerations Interest paid to a non-resident company that is not subject to corporate tax or which benefits from a considerably more advantageous tax regime than the Belgian one (as far as interest income is concerned) is not tax-deductible to the extent that the related loans exceed a debt-to-equity ratio of 7:1. The excess interest is not re-characterised as a dividend payment but is not tax-deductible for the Belgian company. Transfer pricing rules are based on OECD rules, which operate by reference to arm s length principles under which profits can be adjusted. Withholding Tax 25% is the maximum withholding tax on dividends. The withholding tax can be partially reclaimed where a double taxation treaty exists between Belgium and the country of the investor s residence. Non-residents can obtain full exemption from Belgian withholding tax on interest from most classic Belgian bonds, provided that the bonds have been held uninterruptedly since the previous interest payment date and that the bonds are registered in the name of the beneficial owner. Dematerialised Belgian government bonds held by the Belgian National Banks clearing system require no particular registration formalities, and interest is paid gross in the case of foreign investors. Dividends in favour of non-resident non-profit investors which are also exempt from all income tax in their country of residence, will be paid gross, providing that on the day before the dividend payment date, the shares are deposited in a securities account covered by the appropriate documentation. Belgium Country Profile 7

10 Investment Opportunities Bank Bills A short-term negotiable financial instrument. The investor purchases a bank bill at a discount to its face value. The face value is the amount the investor will receive at the maturity date. The amount of discount (the difference between face value and purchase price) represents the return to be earned by holding the bank bill to maturity. Commercial Paper Commercial Paper (CP), also known as Promissory Notes, is an unconditional order to pay a fixed amount on the due date. The paper stands solely on its credit rating and investors will use the credit rating in the investment choice. CP is issued by credit worthy corporations. Negotiable Certificate of Deposits A promissory note issued by banks and finance companies is known as a Negotiable Certificate of Deposit. At Call Money Market At Call funds can be recalled, repaid or renegotiated as to interest rate during morning money market trading, without the need for prior notice. Term Deposits A savings account or Certificate of Deposit held for a fixed-term with the understanding that the depositor can only withdraw by giving written notice. The term generally is at least 30 days. Stock Market The Brussels financial center is part of Euronext, the first pan-european stock exchange created by the merger in September 2000 of the Amsterdam, Brussels, Paris and Lisbon stock exchanges. Euronext also became owner of LIFFE, the London futures and options exchange. The Society for Worldwide Interbank Financial Telecommunication (SWIFT) and the world s first and largest clearance and settlement system for internationally traded securities (Euroclear) all have their headquarters in Belgium. Instruments Traded Equities Interest rate securities Options Warrants Futures 8 Belgium Country Profile

11 Account Services Non residents Operating Accounts On-shore local and foreign currency allowed. Off-shore local currency: Allowed Residents Operating Accounts On-shore and off-shore local and foreign currency allowed. Non residents Overdrafts On-shore local and foreign currency allowed Residents Overdrafts On-shore local and foreign currency allowed. Interest bearing Accounts On-shore local currency and foreign currency operating accounts allowed Resident Current Accounts On-shore and off-shore resident accounts are permitted in both local currency and foreign currency. Resident Savings Accounts There is no real distinction between savings and current accounts. Non-resident Accounts On-shore Non-resident accounts are permitted in both local currency and foreign currency. Off-shore Non-resident accounts are permitted in local currency only. Currency Convertibility Local Currency is freely convertible domestic and off-shore. Interest and Overdrafts Overdrafts are allowed for both Residents and Non- Residents with On-shore accounts in either local or foreign currency. On-shore operating accounts in local or foreign currency are interest-bearing. Interest paid to a non-resident company that is not subject to corporate tax or which benefits from a considerably more advantageous tax regime than the Belgian one (as far as interest income is concerned) is not tax deductible to the extent that the related loans exceed a debt/equity ratio of 7:1. The excess interest is not re-characterised as a dividend payment but is not tax deductible for the Belgian company. Belgium Country Profile 9

12 Payments Citi offers clients payment solutions designed for both local and overseas payments. Clients use CitiDirect Online Banking and CitiConnect for Files for payments and can select any combination of services needed to meet both domestic and international payment needs. Citi Belgium has a comprehensive payment and collection infrastructure that offers clients the opportunity to significantly improve the management of domestic and cross-border flows, to gain efficient access to local clearing services and to process and clear transactions quickly and effectively. Citi Payments Capabilities Domestic Wires Cross border Wires ACH/Low Value Direct Debit Cheques Payroll Transfers Multibank Transaction Initiation SEPA Credit Transfer Domestic Transfers Citi Belgium can provide clients with current accounts and access to CitiDirect electronic banking to allow simple initiation of domestic payments, in Euro and other major currencies as required. Clients can initiate payments to beneficiaries who hold their accounts with other banks in Belgium, or make Book-to-book payments to beneficiaries who also hold their accounts with Citi Belgium. Payroll Transfers The Payroll package is a range of banking services that are designed to meet Client s needs related to payments such as commissions, fees and other cash payments to your employees. The Payroll package comprises the following services: Opening and maintaining an account for payroll payments Opening and maintaining an account for social benefit payments Same day processing and credit to the beneficiary for instructions received via CitiDirect prior to cut-off time Electronic postal money orders for beneficiaries without personal bank accounts Prepaid debit cards as an alternative method of payment to beneficiaries without bank accounts debit cards may be used throughout Belgium at locations accepting VISA Electron. 10 Belgium Country Profile

13 Multibank Transaction Initiation (MBTI) MBTI enables the concentration of funds into Citi accounts from third party local banks. Using CitiDirect a client is able to instruct their local banks to move excess funds to Citi, either for investment purposes or to fund shortfalls. This also achieves the up streaming required in an overlay structure for a regionalised or centralised treasury. The account statements and balances, upon which client instructions are based, are provided by Data Aggregation. Instructions are sent to the local bank across the SWIFT network on behalf of the client. Citi utilises message types MT101 for this purpose. The benefit of the dual capability of Data Aggregation and MBTI is that, once established, customers are able to utilise a single banking platform, CitiDirect, to control concentration, investments, and funding. Commercial Cards A Card-based payment solution deployed as a central part of the expense management process for employee Travel and Entertainment as well as procurement. Citi supports a broad range of card products (Corporate, Purchasing, One Card, Lodge and Single-Use accounts). Cards are issued in 100+ countries globally, via a single proprietary source, ensuring control and consistency. Citi is the only global bankcard issuer that does not rely on partner banks to deliver local currency Commercial Cards solutions feature over 46 different currencies and 25 local languages. Citi is a dual issuer of MasterCard and Visa offering unsurpassed acceptance at 32 million merchant locations and 1,500,000 ATMs in 140 countries. Prepaid Cards Citi Prepaid Card Solutions provide clients with a more efficient and cost effective way to pay. Our full suite of prepaid solutions enable you to move from less efficient means of payments such as paper cheques or vouchers to a comprehensive set of electronic payments solutions that are simple to execute, convenient for your audience and provide a better experience for both you and the beneficiary. Our solutions reduce per-payment costs; streamline operations and increase programme results and communication through our proven methodology and support. The prepaid card programmes offered by Citi are customised solutions that can help companies revolutionise how they: Deliver payroll to their transient or temporary workforce, make timely per diem daily payments and deliver employee rewards in a manner that is convenient to their staff Improve the effectiveness of sales and marketing campaigns through the immediate fulfilment of incentives that reward customer loyalty and desired behaviour, from refer-a-friend programmes to campaigns that promote spend-back to the company Enhance customer service by facilitating the instant payment of refunds and rebates Make more frequent and immediate sales commission payments to a franchised sales force Cross-border Payables Utilising Citi s extensive global network, clients can execute same day value payments in many major foreign currencies within Citi s global network. Using CitiDirect, you can initiate foreign currency payments from your current accounts, payment processing within our own global network enables us also to significantly accelerate cross-border payments processing and reduce processing times. Belgium Country Profile 11

14 Book-to-book Transfers Transfers between accounts held with Citi accounts held outside of Belgium are considered to be Cross-border Book-to-book Transfers and will be processed in real time with the same-day value, subject to cut-off times. SEPA Credit Transfers Citi has been one of the key drivers behind the SEPA initiative since its inception. From the launch of SEPA Credit Transfers in January 2008 Citi has been offering this new payment method across all 23 SEPA geographies including Belgium. Clients are enabled to make SEPA Credit Transfers via both our electronic banking and our file based gateway, CitiDirect Online Banking and CitiConnect For Files respectively. The benefits of SEPA to our clients are substantial. Standardisation is created through the adoption of a single set of consistent pan-european payment instruments SEPA eliminates the need to consider national payment practices, rules, information requirements etc. and facilitates greater centralisation distributed banking model can become more simplified and optimised SEPA aligns with existing efficiency initiatives to improve straight-through processing, reduce cost and maximise working capital In addition, the European payments market offers protection through increased regulation, transparency and competition amongst banks WorldLink Payment Services A complete solution that enables clients to issue cross-border electronic and cheque payments, It permits you to initiate and control your payments online while simultaneously outsourcing the preparation and delivery of cheque payments and electronic funds transfers. WorldLink Funds Transfers enables you to make payments in over 135 currencies. Citi affects the appropriate funds transfer to the beneficiary s dedicated bank for credit to its account, providing speedy delivery of funds. Global Clearing Foreign currency accounts domiciled off-shore at Citi branches providing high value and cheque payment solutions. Foreign Cheque Collections Processing of foreign cheques through the clearing system of cheque origination. 12 Belgium Country Profile

15 Receivables Citi provides clients with a wide range of receivables products, leveraging outsourced relationships to improve client experience. Examples include Merchant Services and low value clearing instruments, such as cash and cheques. Citi Collections Capabilities ACH Credit ACH Direct Debit LCY Wires FCY Wires Lockbox Online Payments EBS Credit Card SEPA Credit Transfer SEPA Direct Debit Incoming Funds Clients can receive both domestic and cross-border receipts into your Citi Belgium accounts, with value date as follows: Domestic Receipts: Domestic receipts received electronically will be credited to your local currency account on the same day Citi Belgium receives the funds on our correspondent account, with the same-day value date Cross-border Receipts: Cross-border receipts received electronically will be credited to you on the same day Citi Belgium receives advice from our correspondent bank, provided the funds are received before cutoff time. Payments received after this time will be credited to your account with next business day value Incoming Foreign Funds Transfers Local accounts can be credited through the transfer of funds from abroad. The FX market is currently free of restrictions on the purchase or transfer of foreign currency. Lockbox Citi s European Lockbox services aim to address the time-consuming and labour intensive process of capturing data from paper receivables, such as cheques and remittance advices. It enables you to outsource this process to Citi, who will in turn provide you with information that you can integrate directly into your Accounts Receivable system thus streamlining your reconciliation process. Belgium Country Profile 13

16 Accounts Receivables Matching Service (ARMS) Citi s Accounts Receivables Matching Service (ARMS) works in tandem with Citi s European Lockbox and Electronic Banking services to integrate collection, clearing, data capture and matching services into a fully automated receivables solution. ARMS offers the following key benefits: Freeing of resources Allowing your staff more time to focus on core competencies Improved reconciliation Significant improvement in first-pass receivables reconciliation Focus The ability to focus attention on resolving exceptional receivables Control Streamlined flow of funds and information Lower costs Significantly reduced administrative costs Direct Debit (ACH Collections) Drawing of funds out of the account of clients customer held with any local financial institution, based on authority by the customer. SEPA Direct Debit Citi was one of the first practitioners of the new SEPA DD scheme, which provides clients with the opportunity to streamline and simplify their processes. The SEPA DD scheme provides innumerable benefits to corporate clients, such as consistent collection of cross-border invoices from bank accounts anywhere in the SEPA area, plus harmonised standards, a single legal framework and opportunities for efficiency gains through centralisation of operations. Citi was the first bank to initiate a SEPA DD collection on the 2 November 2009 i.e. the launch date of the scheme. 14 Belgium Country Profile

17 Liquidity Management Citi Belgium offers a complete range of flexible Liquidity and Investment solutions for clients to help increase efficiency and maximise return on cash balances. Through Citi Belgium clients can participate in the following: Domestic Target Balancing Cross border Target Balancing Notional Pooling Cross currency (1) Pooling Same Day, Overnight, Cross border Sweeps (1) Re accounts held in Citi London. Benefits of Citi s Recommended Liquidity Structures Citi s liquidity solutions will provide you with a number of benefits, as follows: Automated end-of-day movement of funds Flexibility The ability to determine individual target balances for each participating account, minimum sweeps, the frequency of the sweep and multiple one-way sweep concentration options Effective Account Autonomy The ability for participating companies to retain full access to their funds and operate their accounts autonomously during the day The opportunity to maximise interest earned or minimise net interest paid Inclusion of third party accounts and various methods of transferring funds from third party accounts; including an automated method via Citi s Multi-Banking solution Easy to implement and easy to manage Treasury control of all single currency positions Single electronic banking system for all Citi accounts providing various liquidity reports with next day account information available for third party accounts Intraday reporting for all Citi accounts improving Treasury s control of cash Domestic Target Balancing Where there is more than one account for each entity in country, there is the option to first concentrate balances into a Domestic Concentration Account using this solution in order to pool all funds in-country. Cross-border Target Balancing Once all funds have been concentrated on a domestic basis, clients can physically sweep all pooled funds from the Domestic Concentration Accounts in-country into Master Concentration Accounts in the name of each individual entity for onward investment. This solution is highly recommended for funds that are domiciled in-country as this ensures that all entities retain responsibility for its own cash. Single Currency Notional Pooling Once funds have been target balanced into separate Concentration Accounts, clients can sweep all funds from your entities, on a notional basis, to a Single Currency Notional Pool to maximise your balances on a per currency basis. Multi-Currency Notional Pooling Once funds have been notionally pooled, all currencies can be linked to form a Multi- Currency Notional Pool. Belgium Country Profile 15

18 Investments Long-term Investment Long-term Time Deposit Short-term Investment HIYA, Time Deposits or Money Market Funds Citi High Interest Yield Account (HIYA) Citi High Interest Yield Account (HIYA) provides a superior rate of interest not normally earned on a current account in USD, EUR or GBP, but retains the convenience and flexibility of a current account. The interest rate can be tiered incrementally according to the amount of your deposits and benchmarked against a market rate. HIYA would also complement a target balancing or notional pooling concentration structure as set-up at the header account level and therefore earning these rates on the concentrated or notional net balance. HIYA features include: Complete flexibility of a current account Deposits and withdrawals for same-day value as long as currency cut-off times are met Permits back-valuation, allowing funds to be credited with the previous day value Recognises the value of larger balances by tiering interest rates according to the balance on your account Available on a range of currencies (including EUR, USD and GBP) across Citi s branches in Western Europe Time Deposits Time Deposits are offered for a specific tenor, currency and principal amount. Interest is paid when the deposit matures at a fixed rate, agreed and calculated at the time of booking. Time Deposits can be booked through the Citi Liquidity Desk in Dublin or using Citi s Online Investments platform accessed via TreasuryVision or CitiDirect Online Banking. Online Investments allows you to view rates and book time deposits online, with up-to date status reporting. Input-Authoriser controls allow you to manage the various stages of your investment execution. The service also offers clear reporting to facilitate cash flow forecasting and decision making, with the ability to export reports into Microsoft Excel spread sheets or Adobe PDF. Money Market Funds Sweep This solution provides an automated movement of excess funds from stand-alone accounts or accounts with an underlying target balancing structure into Money Market Funds, enabling clients to maximise returns with minimum effort. The money market sweep automatically invests any excess liquidity at the cut-off times. Equally, the automated sweep auto-redeems sufficient holdings from the fund to cover net short positions to bring the cash account back to the designated target balance at the cut-off time. For any liquidity needs past his cut-off time it is advised to have a sweep threshold on the structure. As channel for investments into multiple money market funds, it enables clients to maximise short-term investments returns and reduce the operational effort of actively managing multiple Money Market Fund investment processes. 16 Belgium Country Profile

19 Citibank Online Investments Citi Online Investment Services is an Internet-based investment portal available through CitiDirect Online Banking. It offers a convenient and simple to use channel through which to actively manage your short-term investments and maximise the return on your working capital. As such, it offers global access to investment information, real-time investment rate feeds, immediate trading with straight-through execution (from a nominated Citi account), and immediate confirmations. Additionally, it provides a range of reporting functionality including longterm audit trail/trade history, ad-hoc reports and an export capability. The following European investment options will be available, in multiple currencies, through the channel: Time Deposits with Citibank NA or Citibank International Plc, Citi Asset Management s Citi Institutional Liquidity Funds; and a range of third party money market funds. Citi Online Investment Services complements the Citi Transaction Services Liquidity Desk in Dublin. The Desk provides a single point of contact via telephone for short-term investment information and execution across the EMEA time zone. The Desk is able to provide detailed information of the active and passive investment options available in Europe. TreasuryVision TreasuryVision, Citi s award-winning treasurer s portal, provides data aggregation, cash analytics, end of day and intra-day reporting, cash flow forecasting, bank account management & investments and acts as the Treasurer s daily dashboard to review global balances (not only with Citi but for all your global banks). This is provided at an aggregated level on an end-of-day as well as intra-day basis, with different views according to region, currency, counterparty. We believe that this solution will help clients achieve greater visibility over their balances which should support improved cash forecasting and control, and therefore lead to reduction in overdraft charges. Alternatively, Citi can simply send the aggregated, harmonised and normalised data from Citi and collected from other banks, directly into your SAP environment. Belgium Country Profile 17

20 Trade Services Citi s suite of supply chain solutions mitigate risk and enable our clients to have access to the short-term capital they need to make their business function. Our pioneering work in export and agency finance (EAF), for example, has filled a critical gap in credit during the recent slowdown illustrating our ability to ensure credit flows even in today s times. Our working capital solution sets cover both the internal Trade Finance and outside EAF finance options for firms and are available to both corporates and FIs, and these solutions are complemented by a range of Trade Services. All of these solutions are grounded in our core strengths: global coverage, expert customisation, client responsive innovation, and unsurpassed execution. Citi offers a range of services from traditional letters of credit to our Open Account Trade Processing developing risk and working capital solutions that help corporations conduct, monitor, and control international commercial transactions as well as mitigate their associated risks: from issuing and paying letters of credit to handling settlement and administration of documentary collections Other Trade Services include: Import Letter of Credit (L/C) Export Letter of Credit (Advising, Negotiation and Confirmation) Enhanced Open Account Importers and Exporters who regularly conduct business with each other can reduce the time and costs associated with letters of credit and documentary collections by taking advantage of Citi s efficient, electronic, data-enriched open account trade process. Citi not only effects payment for open account purchases, but also transforms and streamlines the entire reconcilement process between trading partners located virtually anywhere in the world. With Citi s Enhanced Open Account Trade Processing, clients benefit from our team s knowledge of local trade practices, regulations, market risks, and understanding of trade documents. Since we process a very high volume of trade transactions daily, we handle very cost effectively the straight-through processing of trade transactions. Trade Advisor Trade Advisor is a free online inquiry tool available as part of the functionality of CitiDirect Online Banking, provides all parties to trade transactions with information on the status of their transactions. Similar to courier delivery tracking applications, Trade Advisor lets our clients and their business partners and suppliers access summary information online using a transaction reference number. Trade Finance Guarantees (Performance and Financial) Risk Participation Documentary and Direct Collections Trade Outsourcing for Financial Institutions Channel-finance 18 Belgium Country Profile

21 Export and Agency Finance (EAF) Long-term capital for CAPEX investments and financing cross-border trade flows. ECAs and Partnering for growth ECAs are government agencies that promote employment and growth in their home countries by encouraging exports of goods and services. They guarantee bank finance and supplier finance, and/or provide direct loans, transforming usually non-investment-grade borrowers to AAA/AA assets, allowing commercial lenders to extend financing for longer tenors and larger amounts than would otherwise be possible. Tied Financing Citi offers Tied financing directly linked to procurement of goods. This is an excellent option when goods are primarily sourced from one or two countries. Clients benefits from competitive pricing, longer tenors, diversified funding sources and visibility to future investors. Some ECAs also have programs to support the issuance and confirmation of Letters of Credit and risk converge for Guarantees. Untied Financing Citi can also provide finance that is generally linked to a new investment. This option is best used when goods are sourced from a multitude of countries. Benefits include pricing, which is generally at market terms, longer tenors (over 10 years in many cases) and can often be available in local currency. Citi Procure-to-Pay Procure-To-Pay is a new end-to-end financial supply chain automation solution in partnership with Ariba. This holistic proposition brings together the electronic invoicing and discount management engine of Ariba with Citi s core payments, trade finance, and commercial cards solutions, delivering increased operating efficiency and integrated supply chain management to our clients. Moreover, Procure-to-Pay is integrated with our Supplier Finance program described above, allowing suppliers to easily access this attractive source of liquidity. Belgium Country Profile 19

22 Securities and Funds Services (SFS) The Securities and Fund Services business consists of a number of products that serve investor, intermediary and issuer clients. These products are global custody, fund services, securities finance, direct custody and clearing, agency and trust and depositary receipts. Each of these products provides market leading, capitalintensive solutions that enable our clients to focus on their core competencies. Global Custody Offers institutional investors a single access point to the world s securities markets, providing securities safekeeping, settlements, administration and consolidated reporting for their global portfolios. Global custody insulates clients from market inefficiencies and is particularly suited to institutions without their own network management function. Securities Finance Enables clients to increase the return on their securities portfolios by lending their custody assets to approved counterparties for a fee. Fund Services Provides operational, administrative and regulatory support to investment professionals including managers of mutual funds, closed-end funds, hedge funds, off-shore funds and pension funds, allowing clients to remain focused on their core activities managing investments and attracting investors. Direct Custody Provides securities services to institutional investors that prefer to have direct access to a local custodian in the various markets in which they invest. Our proprietary branch network enables us to uniquely deliver both domestic and cross-border custody solutions. Agency and Trust Citi is a leading provider of multiple agency, fiduciary and depositary services covering a variety of capital market transactions including structured finance, medium term note and commercial paper programmes, M&A, escrow, project finance and loan administration. With professionals working in financial centres around the world such as New York City, London, Dublin, Frankfurt, Milan, Moscow, Dubai, Mumbai, Shanghai, Singapore and Hong Kong Depositary Receipts Enable issuers to raise capital and/or broaden their shareholder base and as a depositary Citi issues and cancels depositary receipts in response to receiving or releasing the underlying shares and provides a full range of shareholder services, including registration and servicing of the depositary receipts, and custody and asset servicing of the underlying securities. 20 Belgium Country Profile

23 Delivery Systems SWIFT Local Address: <CITIXXXX> Messages Time Limits: Messages are acted upon the same day Message Types accepted by Citi include: MT100, MT200, MT300, MT400, MT500, MT700 and MT900 series messages. CitiDirect Online Banking Citi offers CitiDirect which is a market leading transaction initiation and information system. CitiDirect online banking gives a client access to his accounts in real time and an expanding portfolio of industry leading products and services via the Web. CitiDirect also incorporates the file based domestic ACH and Cheque payment capabilities. CitiConnect for Files A high volume transaction and information delivery solution CitiConnect for Files is a global gateway for file transmission and translation that effectively integrates payments, receivables and information with accounting, ERP and other financial systems. It offers a single delivery channel for transmission and receipt of files from anywhere in the world. Belgium Country Profile 21

24 Notes 22 Belgium Country Profile

25 Citi Transaction Services Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world. The information contained in these pages is not intended as legal or tax advice and we advise our readers to contact their own advisors. Not all products and services are available in all geographic areas. Any unauthorised use, duplication or disclosure is prohibited by law and may result in prosecution. Citibank, N.A. is incorporated with limited liability under the National Bank Act of the U.S.A. and has its head office at 399 Park Avenue, New York, NY 10043, U.S.A. Citibank, N.A. London branch is registered in the UK at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, under No. BR001018, and is authorised and regulated by the Financial Services Authority. VAT No. GB Ultimately owned by Citi Inc., New York, U.S.A.