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technical working group meeting


									                         RECORD MINUTES


                            MAY 22, 2008

                     GOLD COAST, AUSTRALIA

                    Asian Exim Banks Forum Chair
           Export Finance and Insurance Corporation, Australia
     [Mr. Chang Foo, Head, Product Management and Risk Transfer]

                        Outgoing Forum Chair
                  P.T. Bank Ekspor Indonesia (Persero)
[Ms. Tri Utami R. Nugroho, Senior Vice President, Operations & Accounting]

                        Incoming Forum Chair
                     Export-Import Bank of Thailand
      [Ms. Chomsuda Tuntariyanond, First Vice President, Treasury]


Australia       Ms Soci Coligado and Ms Cathie Burrows

China           Ms Susan Chang Shu and Ms Rui Zhu

India           Mr David Rasquinha, Mr Nadeem Panjetan and Ms Deepali Agrawal

Indonesia       Mr Yoseph Tri Purnomosidi, Mr DWI Wahyudi, Mrs Enny Listyorini,

                Mr Sunu Widi Purwoko, Mr Heryanto Eko Purnomo and

                Mr Dilan Sawalius Butuparan

Japan           Mr Yutaka Funada and Mr Atsushi Yokota

Korea           Ms Jessica Jayoung Gu and Ms Emmy Jiyoung Chung

Malaysia        Mrs Hamidah Abdul Hamid and Mr Zulkifli Raymond Haswell

Thailand        Ms Pornthika Kanchanabut, Ms Charunee Ngenkongpun and

                Mrs Arunsri Suppethyapisal

ADB             Mr Roland Pladet

Apologies:      Philippines Exim Bank

       Meeting commenced at 8:30 am with welcome remarks from Host Chair. Proposed
        agenda was adopted.

Morning session - Managing Complexities

       Members concurred that the proposed AGM theme was appropriate and timely as
        majority of members have recently or are currently undergoing organisational and
        strategic change. Much can be learned through the exchanges.

       Members concerns included the following:

             1. length of time allocated for presentation by Head of Delegations (HOD) – i.e.
                1½ hours may not be sufficient for the 10 presentations;

             2. value of the proposed survey arguing that the HODs would be elaborating on
                the issues anyway; and

             3. format of tour de tab: open or defined? – a free format may solicit questions
                not envisaged by HODs whereas a narrowly defined format could impede

       In order to tease out challenges faced by respective organisations and to explore if it
        was feasible to identify specific topics, a tour de tab was conducted. Each member
        was asked to identify the biggest challenges facing their respective organisation.


       1. Demonstrating relevance in the face of shrinking exporter base of
          capital goods and services as an increasing number of exporters
          establish operations overseas for a variety of reasons including to
          capture lower cost base, gain market access to host country and/or to
          third countries and access to new technology. The manufacturing
          sector is perhaps the most impacted;

       2. Changing trade patterns due in large part to globalisation and hence
          the need to redefine mission which could include legislative mandate
          change to extend EFIC’s services beyond just helping increase
          exports and overseas investments but also to assist Australian
          companies grow internationally;

       3. Commercial versus public (community service obligation) policy
          tension – operating in the higher risk market gap but with an
          expectation of being profitable;

       4. EFIC is Sydney based without interstate branches or overseas offices.
          Outreach to clients is a challenge; and

       5. Balance sheet constraint including portfolio concentration.

2. China Exim Bank

       1. External pressure to conform to international best practices;

       2. Encroachment of private market into traditional Exim bank domain.
          Aspire to be truly international;

       3. Pressure to develop new financial products to stay ahead of the game;

       4. Expansion of mandate to support domestic importers whose activities
          have economic and national benefits; and

       5. China Exim as a relatively new organisation learning to work co-
          operatively with members.

3.   India Exim Bank

       1. Funding costs: Domestically vis-à-vis competition from commercial
          banks and internationally on account of credit crunch arising from the
          sub-prime crisis;

       2. Increasing competition driven by overlapping roles with commercial
          banks and the need to develop new products to meet customer needs
          and also stay ahead of competition;

       3. HR : Challenge of attracting and retaining talented staff in the face of
          vastly superior remuneration offered by private sector competitors;

        4. HR : Knowledge management related to high HR attrition rate and
           skill development to keep pace with rapidly changing client and
           business demands; and

        5. Evolving and meeting performance metrics relevant to the Bank’s

     Mandate is not a constraint as the Bank’s charter (Section 10[2][w])
     specifically provides for the Bank “..doing any other kind of business which
     the Central Government may authorise”.

4. BEI

        1. Conflicts in commercial versus public policy mandate;

        2. Funding – restricted to 3rd party deposits on long term basis; and

        3. Restriction placed by Central Bank – lender of last resort (focus is
           restricted to push strategy, not pull). Pending legislative change to
           Exim Bank status anticipated to free BEI from such restrictions.

     BEI is hopeful that its transition to Indonesia Exim Bank in the course of 2008
     will result in a clear mandate and functioning of the institution.

5.    JBIC

        1. Shifting focus – from export promotion (70s and 80s) to promoting FDI
           (90s) to post-Asian crisis support to other Asian countries (2000s)
           and, currently, the security of supply of resources and clean energy;

        2. Positioning itself as an organisation which can minimise any trade
           disruption as a result of an international crisis, for example, ability to
           minimise disruption arising from financial crises as happened in the
           1997 Asian region meltdown; and

        3. Challenges in using capital markets as funding sources and for
           securitisation purposes (most recently caused by the sub-prime credit

6. Malaysia Exim Bank

        1. Similar HR issues as identified by India Exim Bank;

        2. Face portfolio concentration concerns – by sector, country and
           counterparty due to balance sheet constraints;

        3. Overlapping government agency roles - i.e. conflict in roles played by
           the Bank and Malaysian development banks particularly in providing
           support to SMEs; and

        4. How best should the Bank’s performance be measured? What are the
           criteria to gauge if the Bank fulfils its mandate while being financially

       7. Korea Exim Bank

               1. Constant need to develop new products to keep pace with
                  developments in (and growth of) local banking sector and broaden its
                  market reach;

               2. Overlapping government agency functions, e.g. KEIC and Korea Exim
                  Bank; and

               3. Balancing mix of being a 'lender of last resort' and need to remain
                  financially sound.

       8.   Thailand Exim Bank

               1. Funding costs – while Thai Exim Bank is generally able to raise funds
                  through borrowing or bond issues, it does experience balance sheet
                  constraints resulting from its limited overall capital base;

               2. Thai Exim Bank is more competitive in making foreign currency loans
                  than Thai Baht loans (given the bank’s higher cost of domestic funds
                  compared to commercial banks because it lacks branches to collect

               3. Focus on supporting Thai overseas investors in a financial capacity as
                  well as advisory role (Thai Exim Bank to open country desks in
                  neighbouring countries); and

               4. HR issues as identified by India Exim Bank.

            Like India Exim Bank, Thai Exim Bank is comfortable with current mandate.

   Host Chair identified common themes, not in any priority order, as follows:

       1. Funding costs;

       2. HR related issues;

       3. Balance sheet constraint with associated issues relating to portfolio
          concentration and risk management;

       4. Shift in focus and/or mission;

       5. Competition from the private sector, venturing into traditional Exim Bank
          business space;

       6. Conflict between an objective to behave commercially and therefore be
          profitable yet a need to fulfil public agency role with community service
          obligations; and

       7. Overlapping government agency roles, at times getting into each other’s way.

      In terms of presentation format Host Chair proposed three options:

          1. Have a free for all tour de tab with free flowing discussions;

          2. A verbal tour de tab as 1 above and supplemented with previously distributed
             written summaries on the biggest challenges faced, but in any event not to
             exceed 5 major challenges. HODs are also expected to highlight action plans
             in meeting the challenges. Maximum one page summary on the challenges
             faced; or

          3. No verbal tour de tab, instead allow free flowing exchanges arising from
             written (detailed) summaries.

      On conclusion of session, Host Chair (Angus Armour) to undertake summation of
       common themes and trends.

      Conscious of time constraint, but aware that this is an important session of the
       meeting, members’ consensus was option No. 2 to maximise exchanges. Maintain
       1½ hours allocation, but mindful of possible time extension if discussions are

       EFIC tasked to circulate a standard template - the challenges and accompanying
       description on each of the challenges – to guide HOD in preparation of written
       summaries. Members agreed to drop the proposed survey.

      Written summaries are to be submitted to the Host Chair by 1 October 2008 for
       subsequent distribution to Members. EFIC to prepare compiled report of these
       summaries for distribution to HODs ahead of AGM meeting. This would allow the
       HODs to be prepared for discussions during the meeting.

      As part of the tour de tab, ADB to give a 15-minute briefing on Strategy 2020 (the
       Bank’s recently released Long Term Strategic Framework) focusing on any likely
       impact existing and/or new initiatives may have on the regional Exim Banks.

      BEI has requested additional time (maximum 30 minutes) for its HOD to present the
       impact of a legislative change to an Exim Bank status.

      Members agreed arrangements be made to have a 30-minute presentation and Q&A
       session given by ADB’s Principal Economist (subject to availability) and EFIC’s Chief
       Economist on global and regional changing trade patterns.

Afternoon session

      Export Finance Bank (EFB) – implication and relevance to Asian Exim Banks.
       Members were interested to learn more about EFB’s business model and requested
       the time allocated be lengthened to 30 minutes for presentation and discussion. EFIC
       and ADB have been tasked to give the presentation. EFB may also be invited to
       present at the AGM.

      AEBF – where to next? As an “industry association”, members were reminded the
       objective of the Forum is to enhance co-operation and forge a stronger link amongst

    members. The focus has been on capacity building, cooperation and networking, and
    not primarily on business development although the latter can be a consequence of
    members’ co-operative efforts.

   India Exim expressed the view that through the co-operative efforts business is
    happening and cited several examples. Both JBIC and Thai Exim Bank also
    confirmed that the AEBF has made it easier for them to do business with other
    members. The consensus was members are keen to engage each other on
    transactions where opportunities present themselves and the AEBF facilitates this

   Some members expressed the view that there should be a re-statement of the
    Forum’s objective, if only to remind newly appointed HODs of the intended aim of the
    AEBF. To this end, members agreed there should be a signing ceremony to reinforce
    the message but not to repeat the consensus points previously agreed in the Tokyo
    and Bali meetings.

   EFIC has volunteered to draft the content of the document for circulation and seek
    members’ comments and subsequent consensus in time for the AGM signing
    ceremony. The content may also include an action statement for members to work
    towards establishing a template Reciprocal Re-guarantee Agreement before the next
    AGM in Thailand. The document would establish an agreed protocol on procedures
    to facilitate risk participation amongst members.

   The question of whether members wish to aspire for the Forum to have a more
    influential and active role in international trade and investment discussions, such as
    the Berne Union, was met with lukewarm response. Members felt that their efforts
    should continue to be inward looking, directed to learning as much amongst
    themselves as possible until the Forum has reached a level of maturity to
    contemplate natural evolution to the next phase.

   Korea suggested that the bi-annual meetings amongst members be increased to
    three a year. Members, however, expressed concerns on increased resources, in
    particular of cost and time. Australia suggested that the traditional one and a half day
    TC and TWG meetings be extended to either two or two and a half days, with the
    additional time dedicated to engagement with other “industry associations” such as
    the Berne Union, the OECD Export Credit Secretariat or possibly to cover an
    educational / learning / experience sharing session on topics relevant to the

    As the next TC & TWG host, Thailand has undertaken to consult with senior
    management on Australia’s suggestion and report back to Host Chair by 31 August

   Members felt it was useful to have a tour de tab to start off future TWG meetings.
    Proposed structured tour de tab to cover the following topics:

       o   Main business trends for the year to-date which will include new business by
           sector, country and/or region and non-performing loans;

          o   Major new products or changes in schemes, if any;

          o   Major organisational changes, if any; and

          o   New co-operation agreements or business transacted with other members, if

Use of AEBF Portal

      Members agreed that the AEBF portal should be used more widely. As the custodian
       of the portal, India Exim Bank has confirmed its willingness to maintain currency.

      It was noted that the portal contained summaries of past AGMs up to and including
       the 11th meeting in Goa, India. In order to maintain currency, the previous chairs
       (JBIC and BEI) have agreed to collate the relevant AGM materials for forwarding to
       Kiran Patil ( for up-loading to the portal. Relevant materials
       to be submitted by 31 August 2008.

      Members agreed that the host Chair for future meetings will have the responsibility to
       submit meeting materials, including a summary of the AGM, to Kiran Patil, as soon
       as possible after each meeting.

      Meeting concluded at 4:30 pm.

BEI gave a 30-minute presentation on its new mandate in the Training Committee Meeting
(same audience as the TWG). As the topic is more relevant to the TWG and for
completeness sake, the presentation is recorded within the TWG minutes.

Action Points Relating to the TWG Meeting

   Task Description                                      Responsible   Completion
                                                         Member        Date

   Prepare template with brief explanatory notes as      EFIC          31 Jul 08
   pointers for HOD speaking topics.

   Maintain currency of portal. Status report from       JBIC & BEI    31 Aug 08
   previous two AGM chairs/ hosts (12th and 13th
   meetings) for uploading of reports and materials to
   portal. Relevant materials to be forwarded to Kiran
   Patil (

   As next year’s host, Thai EXIM Bank to consult senior Thai Exim     31 Aug 08
   management in extending 2009 TC and TWG               Bank & EFIC
   meetings to two or two and a half days to incorporate
   educational / learning / experience sharing
   session(s). Convey decision to EFIC.

   Arrangement for ADB and EFIC economists to give       ADB & EFIC    31 Aug 08
   lunchtime presentation – regional & global changing
   trade patterns and its impact on our institutions.

   Overview of EFB – presentation by EFIC/ADB and        ADB & EFIC    31 Aug 08
   EFB. EFIC to invite EFB.

   Draft discussed form of “re-statement/action”         EFIC & All    25 Aug 08
   document and seek Members’ comments and               Members       (to Members)
   consensus in time for the HODs to sign at AGM.
                                                                       25 Sep 08
                                                                       (to achieve

   Written summaries to be submitted to EFIC (as Host    All Members   1 Oct 08
   Chair), based on sample template. EFIC to prepare                   (submission)
   compiled report of summaries for distribution to
   HODs ahead of AGM.                                                  15 Oct 08


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