Citibank 2013 Annual Report Download - page 141

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A significant portion of Corporate loans in S&B are to borrowers whose
ultimate parent is headquartered in a different country, often in the developed
markets. For example, as of December 31, 2013, in Brazil, approximately
25% of Citi’s Corporate loans in S&B were to borrowers whose ultimate parent
was domiciled in another country. In China, approximately 75% were to
foreign multi-national corporations. In India, approximately 50% were to
foreign multi-national corporations.
GIIPS Sovereign, Financial Institution and Corporate
Exposures
Several฀European฀countries,฀including฀Greece,฀Ireland,฀Italy,฀Portugal฀
and฀Spain฀(GIIPS),฀have฀been฀the฀subject฀of฀credit฀deterioration฀due฀to฀
weaknesses in their economic and fiscal situations. Moreover, the ongoing
Eurozone debt and economic crisis and other developments in the European
Monetary Union (EMU) could lead to the withdrawal of one or more
countries from the EMU or a partial or complete break-up of the EMU. The
information below sets forth certain information regarding Citi’s country risk
exposures on these topics as of December 31, 2013.
The information in the tables below is based on Citi’s internal risk
management measures and systems. The country designation in Citi’s
internal risk management systems is based on the country to which the
client relationship, taken as a whole, is most directly exposed to economic,
financial, sociopolitical or legal risks. As a result, Citi’s reported exposures
in a particular country may include exposures to subsidiaries within the
client relationship that are actually domiciled outside of the country (e.g.,
Citi’s Greece credit risk exposures may include loans, derivatives and other
exposures to a U.K. subsidiary of a Greece-based corporation).
Citi believes that the risk of loss associated with the exposures set forth
below is likely materially lower than the exposure amounts disclosed below
and is sized appropriately relative to its franchise in these countries. In
addition, the sovereign entities of the countries disclosed below, as well as
the financial institutions and corporations domiciled in these countries, are
important clients in the global Citi franchise. Citi fully expects to maintain
its presence in these markets to service all of its global customers. As such,
Citi’s exposures in these countries may vary over time based on its franchise,
client needs and transaction structures.