Speaking notes for Chairman’s interview with reporter of Taiwan News
1.This year’s (2015) business focus
(1)Increase Eximbank’s capital by TWD20 billion, highlight Eximbank’s policy function, and expand Eximbank’s operations
jEximbank is carrying out the plan to expand its business capacity and service points in order to actively assist Taiwanese company in gaining the competitive edge in the global market and hence further boost the growth of Taiwan’s imports and exports. To this end, Eximbank will increase its capital by TWD20 billion to strengthen its power to deepen and broaden its services. The capital injection plan was approved by the Executive Yuan in July 2014 through the program called “Financial Shield Enhancement Program - Strengthening the Eximbank’s Functionality”, a sub-program of the “Export Product Transformation Action Plan”. In the sub-program, Eximbank is given more responsibility for creation of momentum for Taiwan’s exports.
kTo better serve and develop clients in the Chiayi-Tainan region, and specifically assist them in expanding their international trade as well as to promote the balanced development of urban and rural areas in the South, Eximbank has obtained permission from the Financial Supervisory Commission, Executive Yuan in March 2014 to establish a branch in Tainan, which started operation on 12 March 2015.
(2)Collaborate with the National Development Council to promote medium and long-term financing business and assist Taiwanese companies to access overseas markets
Since May 10, 2006 Eximbank has executed two project finance programs, "Machinery Export Financing " and " Overseas Investment Financing", both of which are supported by National Development Council. On March 27, 2013, a new finance program called "Green Energy and Industrial Machinery Export Financing" was again agreed between Eximbank and National Development Council. In these three programs, Eximbank acts as the lead arranger and book runner, and welcomes all domestic public and private banks for their participations. Until the end of March 2015, Eximbank has approved 551 cases of export credit, overseas investment credit, and overseas construction credit, representing a total value of TWD19.9 billion.
(3)Strengthen international cooperation, actively participate in the Berne Union, and sign Memoranda of Cooperation with export credit agencies around the world
jEximbank is actively involved in the "Berne Union", which was established by export credit agencies from various countries. Through participation in this international organization, Eximbank has access to a platform where it can exchange information and share experiences with sister agencies around the world, and leverage the strength of this international organization to effectively recover debts and reduce losses. Eximbank is also one of the members in Reginal Cooperation Group (RCG), a sub-group of the Berne Union, participated only by Asian members. The RCG provides an additional platform for Asian members. Since acting as chairman of Eximbank, I have participated in Berne Union meetings many times, including the Berne Union annual meeting in Vienna in October 2013 and the one in London in October 2014 as well as the meetings of the RCG. Under my guidance, Eximbank successfully completed its jobs as the rotating chairperson of the RCG for the year of 2014. In this capacity, Eximbank hosted the Asian RCG CEO Meeting in July 2014. This has contributed to exchange and learning with foreign sister agencies, and has increased the international profile of Eximbank.
kIn recent years, export credit agencies around the world are strengthening their cross-border cooperation. In response to this international trend Eximbank has signed Memoranda of Understanding, for the aims of mutual learning and exchange of information, with the official export credit agencies of 18 countries and regions including Hong Kong, India, Finland, Poland, the Czech Republic, Hungary, Slovakia, Turkey, Thailand, Indonesia, Japan, Malaysia, Belarus, Korea, Israel, Mainland China, Sweden, and Sri Lanka.
(4)Expand the network of relending banks in emerging markets, and assist companies to grow their exports
jRelending facility is a program aimed to facilitate foreign businessmen to purchase manufactured goods, mainly machinery and the like, from Taiwan. It is a bank-to-bank arrangement by which Eximbank extends a credit line to peer financial institutions overseas, in support of financing their clients’s importation from Taiwan.
kEximbank has been committed for many years to expanding its relending network in countries around the world with the aim of assisting Taiwanese manufacturers to develop overseas markets. By the end of March 2015 Eximbank had collaborated through Relending Facility with 62 financial institutions in 23 countries, including Thailand, Mongolia, Turkey, Vietnam, Russia, Brazil, India, and the Philippines, for a total value of USD 689 million.
(5)Restructure organization to match the business development, and endeavor to develop innovative financial products
jThe operation environment of banking industry is facing the impact of globalization, liberalization, and revolution of information technology. In response to that and to meet the needs of future business growth, Eximbank plans to implement a reorganization during 2016. A new department, called Plan and Review Department, will be created. The department will be dedicated to strategic planning, business review and public affairs, through which an independent and objective review mechanism could be achieved as well as an improvement of the overall synergy could also be expected.
kTo fully implement the Financial Shield Enhancement Program, Eximbank completed the development of special insurance products for banks, called “Globalsure Account Receivable Insurance for Bank ” and “Letter of Credit Insurance for Bank”. These two insurance products provide financial institutions with covers for the risks associated with the factoring and forfaiting business, therefore increasing the capacity of the commercial banks to purchase account receivables from the exporters as well as indirectly protecting the financial assets for the exporters.
lThe “Globalsure Account Receivable Insurance for Bank ” and “Letter of Credit Insurance for Bank” were officially launched in the second half of 2014, and to date Eximbank has signed six contracts with four commercial banks. They are E.Sun Bank, First bank, ?Bank SinoPac and CTBC Bank.
2.On March 19, 2015, Eximbank and the European Bank for Reconstruction and Development (EBRD) signed a Memorandum of Understanding to strengthen their collaboration and to promote bilateral trade development
(1)To promote the partnership with the European Bank for Reconstruction and Development (EBRD) and to facilitate bilateral trade development with Europe, EBRD President Sir Suma Chakrabarti led a delegation to visit Eximbank on March 19, 2015. During the visit, the Chairman of Eximbank and the EBRD President signed a Memorandum of Understanding.
(2)In the Memorandum of Understanding the two sides agree to exchange, confidentially and lawfully, market, economic, financial, and industry information, and to strengthen their cooperation in the financing of energy, transport and infrastructure projects. The Memorandum of Understanding will be helpful to Taiwanese companies undertaking engineering works in the projects supported by EBRD and will contribute to the development of bilateral trade. It will also help raise the international profile of Eximbank.
3.To assist Taiwanese companies to expand in the RCEP region, Eximbank plans to establish a representative office in Bangkok, Thailand
In line with Taiwan’s government policy to strengthen its presence in Asia, and to assist Taiwanese companies to expand in the Regional Comprehensive Economic Partnership region (RCEP; consisting of NAFTA + India, China, Japan, South-Korea, Australia, and New Zealand) and grasp opportunities in Southeast Asia, Eximbank obtained permission from the Financial Supervisory Commission on December 11, 2014 to apply for the establishment of a representative office in Bangkok, Thailand. The application was approved by the Bank of Thailand on March 17, 2015. Currently Eximbank is busy preparing the office, which is scheduled to be opened by the end of June 2015.