“Guarantee systems in European Union countries –

searching for the best model”

Warsaw, 09 February 2011Speaker – Ceretto Massimo

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Agenda

I Guarantee institutions in Italy

II

Our position in the marketIII

Guarantee products

Some figures

IV

W&TsV

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Institutions Features

Credit Guarantee Corporation

107

• Supervised by Bank of Italy• With total Asset above 75 million • Number of entities 41

Credit Guarantee Corporation

106

• Not Supervised • Total Asset below 75 million• Number of entities 753

Guarantee institutions

4

Numbers of CGCs by District

Source: SME report, Unicredit Bank,2006

Country distribution

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Standardized approach

IRB foundation approach

IRB advanced approach

Tranched cover (both 106 & 107)

It’s relevant only when the coverage guarantee % is high

Depends on the quality of the guaranteed portfolio

Ex art.106 Rating A-;

1:1 counter-guarantee of public funds

Rating A- (or equivalent PD);1:1 counter-guarantee of public funds

Low PD,

1:1 counter-guarantee of public funds

Ex art.107 Always valid forRWA 20%

Confidi rated by the bank;1:1 counter- guarantee of public

fund

Basel II compliant guaranteesunder “ex art. 106” and “ex

art.107”

Guarantee & Basel 2

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Framework of guarantee

Counter GuarantorSME

Application for Loan

1

Credit investigation2CGCsApplication for guarantee3

Guarantee contract5

Counter Guarantee (optional)

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BankCredit investigation4

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Piedmont Region Finance Company

Main Banks

Member enterprises

FINPIEMONTE PARTECIPAZIONI SPA 18,22%

SMEs

Shareholder base

23,74%

51,20%

8

BBB+, Outlook: stable

BBB, Outlook: negative

Personnel approx 400

Banking agreements 140

Eurofidi at a glance

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Organization

Board of Directors

Chief Executive

Officer

Supervisory Board

Auditor Chief Risk Officer

Guarantee Department

28 Branches

5 Regional HQs

Executive Committee

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Eurofidi rules

50 ~ 80% depending on the credit rating of the borrower and available counter guarantee.

Coverage ratioCoverage ratio

up to 6,8% upfront fee depending on the credit rating of the enterprise and available counter guarantee

Guarantee feeGuarantee fee

Normal ceiling for a single enterprise : Euro 4,4 million

Special ceiling for group enterprises : up to 25% of Total Capital

CeilingCeiling

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Management of Defaulted Loan

- Eurofidi notified of the enterprises’ default mainly from creditor institution.

- Upon receiving the notification, Eurofidi initiates default handling procedure.

Notification of Default

Default handling

Preservation of Property

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Claims for Payment

- When the enterprise

defaults, the creditor

institution makes claim

for payment to Eurofidi.

- After evaluating the claim,

when there are no causes

for exemption, Eurofidi

makes payment under

guarantee.

Claims for Payment

Evaluation

Payment under Guarantee

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Recovery from Payment

- Eurofidi is subrogated to

creditor’s claim and

gains the right recover to

its payment.

- Only when there is no

way to recover payment,

Eurofidi stops collection.

Collection

Recovery of Payment

• Lawsuit

• Auction

• Exercise of security right

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Guarantee Market

Outstanding guarantee in Italy as of December 2009*

21,545 Billion

Eurofidi outstanding guarantee as of December 2009

5,247 Billion

Eurofidi 24,35%

*Source: Bank of Italy, Regional Economies-Economic developments in the Italian regions

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PIEMONTE LOMBARDIA TOSCANA

Alessandria Bergamo Firenze

Asti Brescia Pisa

Biella Brianza Arezzo

Borgomanero Gallarate

Chivasso Lodi

Cuneo Milano Nord

Rivoli Milano Sud

Torino Pavia

Torino Mirafiori

LIGURIA UMBRIA ABRUZZO

Genova Perugia Pescara

Savona

MARCHE EMILIA ROMAGNA LAZIO

Ancona Bologna Roma

Pesaro Forlì

The Marketplace

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Short term loans

Revolving loans

Mid long term loans

Leasing

Tranched Cover

Special loans such as (Flood, Usury…)

Working capital

Rescheduling agreements

Restructuring

Products

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Weakness

CGF Basel 2 compliance is a temporary counter crisis measure.

What will a happen after the CGF deadline?

Threats

Transfer the guarantee RWA benefit to the SMEs and not only to the banks.

W&T

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ContactEurofidi S.c.p.a.

Via Perugia, 56

10152 Torino – Italy

Massimo Ceretto, Chief Risk Officer

m.ceretto@eurogroup.it

Office: +39 011 24 191

This presentation is made purely for information. We have tried to give relevant information which we believe will help in knowing our experience. The viewers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. While every care is taken to verify the accuracy of the information given in this presentation, neither the Eurofidi nor its officials would in any way be liable for any action taken or not taken by the viewers or the users of this presentation or for any claims, losses etc.