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Agenda Introduction Risks related to MF Investments The Post Lehman's period

Funding in Times of Crisis: “ Relieving the Burden” Finding Local Currency solutions to Loan Repayments. Agenda Introduction Risks related to MF Investments The Post Lehman's period Local Currency Loans The Local Markets. Foreign Exchange; Focusing on Less Liquid Exotic Markets

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Agenda Introduction Risks related to MF Investments The Post Lehman's period

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  1. Funding in Times of Crisis:“ Relieving the Burden”Finding Local Currency solutions to Loan Repayments

  2. Agenda • Introduction • Risks related to MF Investments • The Post Lehman's period • Local Currency Loans • The Local Markets

  3. Foreign Exchange; Focusing on Less Liquid Exotic Markets • International Assets Holding Corporation (IAHC) is an independent, publicly owned financial services firm focused on select, niche international markets. By using its capital and expertise, INTL seeks to facilitate wholesale, cross-border financial flows through market making and trading of international financial instruments. • INTL Global Currencies specializes in providing specialist foreign exchange and treasury services to NGO’s and multi-national corporations doing business in the more difficult emerging markets for more than 25 years. • Clients include over 450 NGO’s, UN and bilateral aid agencies, OECD embassies worldwide, Financial Institutions and Corporations. 2009, has seen the addition of MIVs and DFIs to this extensive client base. • Market coverage of over 125 currencies with longstanding experience in the less liquid markets. In these smaller more difficult markets, our relationships with a wide variety of local banks allows us to capture very competitive rates not offered by the larger international banks. • Through our proprietary dealing platform – FXecute - we provide an integrated web-based solution for Clients to manage their large currency requirements.

  4. MF Investment Risks Hard Currency Loan Country Risk Lender Credit Risk Lender Currency Risk Borrower Liquidity Risk Borrower Settlement Risk Lender & Borrower Burden on MFI

  5. The Post Lehman’s Period • International banks called in their loans > USD squeeze started; • Biggest impact on the more stabilised emerging countries with a track record of a stable economy; • This created the effect of unwinding in 6 months a steady 6 years’ worth of investments economy; • Leading to huge currency depreciation > MFIs suddenly faced huge liability in combination with shortage of USD for repayments Relieving the burden……

  6. Local Currency Loan Risks Hard Currency Loan Local Currency Loan Solution for LC Loan Risks Country Risk Lender Lender X Credit Risk Lender Lender X Currency Risk Borrower Lender Hedging (e.g. TCX, MFX, Cygma) Liquidity Risk Borrower Lender Professional Service Provider Settlement Risk Lender & Borrower Lender Professional Service Provider Burden on MFI Burden on MIV Burden can be relieved

  7. Local Markets Central/Latin America Africa Asia Liberalized market Liberalized market Regulated market

  8. Added Value of Professional Executer for DFIs, MIVs and MFIs Access to: • Knowledge: local rules and regulations • Operational Excellence • Professional and Dedicated staff • Liquidity • Competitive Pricing

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