Message of the President

 Dear partners and colleagues,

As you may all know, Eximbank is getting a grip on country’s economy through instruments specially tailored to bolster economic development.

In 2005, the Bank managed to sustain domestic business environment and to secure companies’ activities carried out into developing countries while taking over the financial and political risks particularly raised in such areas.

Though our institution is meant to sustain those undertakers involved in export business, they are no longer provided with incentives such as cost subsidies, but with relevant financial and banking levers which are intended to bring about substantive competitiveness and productivity onto an ever expanding market.

Eximbank is strongly geared towards both Romanian and European reality. In every respects we strive for the time of accession to the European Union and exert competences as State’s agency while broadening the span of our activities.

Consequently, the amendments of November last year to the Law of Bank’s management and operation, added those sectors highlighted as most conspicuous for Romanian Government’s economic policy to the domains currently supported through financing, co-financing, re-financing, insurance, re-insurance and guarantee.

Therefore, besides emboldening foreign trade activities and promoting Romanian business environment Eximbank has channelled endeavours towards the following targets:

• infrastructure development and public utilities upgrade

• regional growth and research & development support

• environmental protection

• staff hiring and training

• SME-s headway on growth and uphold of Romanian companies with capital abroad

• partnership with commercial banks in order to sustain international transactions

In June 2005, Bank’s share capital was increased to slightly over RON 107 million by including reserves from net profit, patrimony re-assessment and favourable spreads related to foreign currency amounts.

However, in order to properly accomplish the new assignments mentioned above, the Government enforced another increase of Eximbank’s share capital at year-end to almost RON 760 million. Meanwhile the Authority for State Assets Resolution (AVAS) lifted participation to over 95%, the Financial Investment Co. (SIF) Oltenia to over 3 %, while the other Financial Investment Companies dwindled their share below 0.5%.

It is worth mentioning that Eximbank is guiding Romanian exporters towards the use of modern techniques already in force in European countries. Thereby, the Bank mitigates the effects of regulations endorsed by EU recommendations and provisions of the OECD Arrangement on officially supported medium and long-term export credits.

It follows that Romanian exporters benefit from assistance terms similar to competitors in the European market, thus precluding the likelihood of ill-loyal competition practices.

Eximbank also focuses on the materialization of guidelines stipulated in the National Export Strategy, heeding an adequate offer of products and services to meet the demand of foreign trade activities and ensure the matching between customer and quality level.

To this end we aim at concluding RON re-financing agreements or partnership with Romanian commercial banks so as to capitalize our products array into their territorial branch network. Presently, Eximbank has succeeded in signing two of such agreements: with BRD-Société Générale and with Korea Eximbank.

The first one is construed as a partnership concluded in April 2006, providing for insurance and guarantees from Eximbank available to exporters, customers of BRD-Société Générale for export-designed output and trade funding.  Likewise, our bank is supposed to be part in syndicated credit and risk in furtherance to financing or in view of mitigating the BRD taken risk.

For the sake of BRD customers Eximbank supplies insurance against external payment default risk and for credits granted to the achievement of export devoted output.

Moreover, BRD customers may benefit from state guarantee to supplement their collaterals so as to become eligible for financing or letters of guarantee from BRD.

The second agreement, signed on May 30, 2006 with Eximbank’s pair institution in Korea is a Co-operation Framework Agreement laying the basis for a future operational relationship riveted on actual projects.

Hence the Romanian economic companies are ensured greater access to external markets even to those with increased risk involved.

As a matter of fact, Eximbank’s strategy of expanding incentives granted through specific instruments is outlined by the co-operation agreements already concluded with ECA type institutions in countries such as: Czech Republic, Belgium, Estonia, India, China, Philippines    and Egypt. The goal of these agreements is to spur relationships between domestic companies and those of the respective countries by means of financial and banking levers particularly adjusted to customers’ financing demands.

The innovating products placed on the market by the Bank entailed the availability to new facilities such as the guarantee for export output credits, which enable exporters to devote time and resources to achieve the competitive edge products. Likewise, the lending bank is enabled to enjoy greater solvency and release capital to further financing since it relies on irrevocable and unconditional guarantee issued by Eximbank for State’s account. Through the latter, the issuing bank pledges to take over up to 80% of the non-disbursement risk related to the credit granted by a commercial bank.

Exporters as end-users may also turn to export guarantees for general commodities, while the interest rate offset and the micro-guarantee are intended for SME-s. 

A credit agency is said to live up to its reputation, to be stable and operational, preserving a mandatory range of customers both eligible and reliable provided its ethical and professional standards are being consistently applied and observed.

Eximbank wishes to adopt a two-fold outlook: product focussing and customer eyeing. The latter may be induced, among others, by product’s poised and undisputable quality as well as by its practical effectiveness.

For marketing reasons and in order to override consumers’ sceptical spirit, Eximbank takes into account both the potential and the experienced need, considers both the potential and the effective demand, and is also keen on market requirements.

Finally, we would like to emphasize that Eximbank is bound to deploy  successful activities concurrently with fair share of the distribution market, with accurate tagging of the target audience and a persuasive strategy meant to draw customers described as actual, aspiring and potential, according to the extent of their involvement into export activities.

Carmen Radu