Effective January 1, 2004

Select Your Country Above

Notes From The Country Schedules:

1. Credit approval requires detailed credit and financial information and is looked at on a case-by-case basis. Most require special restrictive endorsements.

2. Currently, arrangements are in place with the Bank of China and the State Development Bank to serve as obligor or guarantor for medium and long-term transactions. We will consider transactions with other financial institutions or other entities that are able to provide detailed financial information sufficient to enable EnviroTech Financial, Inc to reach a credit conclusion.

Under short-term credit extensions for public sector transactions, the extension of credit to a foreign public sector entity requires the obligation of one of the following: the Bank of China, the State Development Bank, the China Construction Bank, the Industrial and Commercial Bank of China , or the Bank of Communications. For private sector transactions, most approvals require the guaranty of one of the above unless the credit is extremely strong financially and have operations outside of China .

3. Prior to accepting an application for a public sector transaction, we will require an indication of host government support for the application. Contact EnviroTech Financial, Inc for more detailed information on specific markets.

4. Our approval of a credit request for short and medium-term private sector transactions is typically limited to transactions with a commercial bank as obligor or guarantor unless otherwise specified by our credit committee.

5. EnviroTech Financial, Inc coverage/support for public sector transactions is typically limited to transactions that commit the full faith and credit of the government.

6. Under short-term transactions (up to one year), transactions will be approved on a case-by-case basis and will be looked at more carefully if the request is for more than the following amounts in each individual case:

· $50,000

· $100,000

Higher limits will be considered when more detailed credit information is available, a Letter of Credit is available, or other endorsements can be obtained.

7. Credit support is legally prohibited.

8. Public sector transactions in Sharjah, Fujairah, Ras Al-Khaimah, Umm Al-Qaywayn, and Ajman require the guarantee of the federal government of the United Arab Emirates .

9. Sovereign transactions with total term in excess of one (1) year require the government of Aruba as the borrower.

10. When available, medium- and long-term public sector transactions are subject to Ministry of Finance notification to EnviroTech Financial, Inc that the transaction is of the highest priority and would conform with IMF program limits on non-concessional debt.

11. See below:

a. Public sector financing is available under certain programs. Transaction structure and additional information requirements will be determined on a case-by-case basis. Public sector financing is also available if it is supported by an irrevocable Letter of Credit or bank guarantee acceptable to EnviroTech Financial, Inc.

b. Private sector financing is available. Transaction structure and additional information requirements will be determined on a case-by-case basis. Private sector financing is also available when supported by an irrevocable Letter of Credit or bank guarantee acceptable to EnviroTech Financial, Inc.

12. See below:

a. As a result of existing conditions in this market, EnviroTech Financial is not currently processing applications for credit in the public sector.

b. As a result of existing conditions in this market, EnviroTech Financial is not currently processing applications for credit in the private sector.

13. Where financing is not available for certain routine trade finance transactions, EnviroTech Financial will consider structured financing arrangements, asset-based aircraft leases, and other financing arrangements that offer a reasonable assurance of repayment, including reliable access to adequate foreign exchange. Additionally, financing support is available for a transaction that is supported by an irrevocable Letter of Credit issued by a bank, and/or due from a Buyer, located in a country where EnviroTech Financial, Inc will finance transactions without restrictions for short-term transactions.

15. Support may be available for transactions where the primary source of repayment is the Development Fund for Iraq or another entity or facility established under the auspices of the Coalition Provisional Authority with access to foreign exchange and protection for the claims of creditor of the former regime. Support may also be available for transactions where the primary source of repayment is an acceptable financial institution or other party located in a third country and based upon the amount and term of the proposed transaction. In addition, other transactions may be acceptable subject to additional requirements for subcontractors supported by U.S. government or internationally funded contracts.

ADDITIONAL INFORMATION:

The above schedule is organized along three dimensions: the country where the risk lies, sector (public sector or private sector), and term of total exposure (including both disbursement period and repayment term). EnviroTech Financial, Inc defines "public sector" as including those obligors or guarantors which are at least 50% owned, directly or indirectly, by the government. Where there is an “X” mark, EnviroTech will not consider approval of routine transactions. These determinations are due to economic and/or political risks associated with the country.

Where there is no “X” indicating that we will not consider credit requests, designation refers to the possibility, rather than the certainty, of EnviroTech’s credit approval in particular cases. Proposed obligors, guarantors, and transaction structures under medium- and long-term credit repayment terms are all subject to case-by-case EnviroTech credit approval. Approval depends on the case-by-case application of our policies, particularly the determination of reasonable assurance of repayment. The following paragraphs provide very general guidance to the application of policies in markets where will accept credit requests from.

Identification of Obligor or Guarantor. EnviroTech will approve a final commitment or a preliminary commitment only if a specific obligor or guarantor has been identified.
Information Requirements regarding Obligors or Guarantors. EnviroTech Financial, Inc requires that obligors or guarantors offer "reasonable assurance of repayment." To process applications for final commitments will first require information on proposed obligors and guarantors. Such information includes credit references and may require financial statements (dependent upon the size of the transaction and other parameters). Engineering data is required for long-term transactions. Generally, EnviroTech will require more detailed information regarding obligors or guarantors when processing relatively large transactions, or transactions with obligors or guarantors with which EnviroTech has had no favorable direct credit experience. EnviroTech’s application form and program literature specify our standard information requirements.
Sovereign Guarantees for Public Sector Buyers or Obligors. For cases involving proposed public sector buyers or obligors that do not have significant independent sources of revenue outside the central government budget and which do not have independently audited financial statements, EnviroTech will routinely require a sovereign guarantee.
Prior Evidence of Host Government Willingness to Provide Sovereign Guarantee in Some Countries. In some countries, EnviroTech requires applications for a final commitment for a medium-or long-term loan to be accompanied by prior evidence of the host government's willingness to provide a sovereign guarantee.
Temporary Suspension of Cover. In countries where the schedule indicates that EnviroTech is willing to accept credit applications, we may, under certain circumstances, temporarily suspend credit applications. This is most likely to be the case for public sector obligors and guarantors only, but may involve all obligors and guarantors. In such an event, EnviroTech Financial, Inc will advise applicants as quickly as possible.
Large Transactions in Smaller Markets. Relatively large transactions in smaller economies, even when sovereign guaranteed, will be subject to special credit review. EnviroTech will review the potential macroeconomic impacts of the transaction, in terms of higher debt burden and debt repayment capacity.
Private Companies. EnviroTech will accept the direct credit risks of private buyers, if available information suggests that these buyers offer a "reasonable assurance of repayment." For closely-held companies, EnviroTech may require financial information from owners. For holding companies, we may require financial information on operating components, and may require their counter-guarantee.
Commercial Bank Guarantees. EnviroTech Financial, Inc may require the guarantees of acceptable commercial banks in the event that information available to us on proposed private buyers suggests that these buyers by themselves do not offer a "reasonable assurance of repayment."
Limited Recourse Projects. EnviroTech will consider limited-recourse project finance structures (those without full recourse to an acceptable, established obligor or guarantor), but only after a comprehensive review of project features. These features shall include the financial commitment of the project's equity shareholders over the life of the proposed EnviroTech commitment; the experience and capacity of project participants, including suppliers and offtakers; project cash flow coverage of foreign currency debt service; and security structures, including hard currency external payments arrangements. EnviroTech will review only well-developed proposals, and will require project sponsors to fund review of project proposals by consultants retained by us. Significant changes to proposed structures may be required.

Where EnviroTech Financial, Inc does not approve a credit request for Country Credit Reasons. EnviroTech will not consider routine transactions in countries and sectors (public or private) where the country limitation schedule above indicates that we will not accept credit requests from (where there is an “X”). However, four special categories of transactions may be eligible for special credit support, under restrictive conditions, subject to additional special review:

Borrowers on International Capital Markets. Individual borrowers (either public sector or private sector) with a strong record of independent access or those borrowers which in EnviroTech’s opinion could have access to private international capital markets or other international sources of funds, absent external (including sovereign) guarantees. The extent of our approval, will take into account information related to the borrower's financings and ratings. For EnviroTech to consider such borrowers, information on the borrower's international borrowings for at least the last six months must accompany the application. For each traded debt security, the required information includes the maturity and coupon, credit ratings (if any), and recent yield data. For syndicated loans, the required information includes interest rates, arranging fees, maturity profile, amounts borrowed, and names of arranging and key participating banks.
Insulated Project Finance Structures. EnviroTech's approval in these transactional markets/sectors of limited-recourse structures depends on the establishment of structures that do not require the financial or operating commitments of host government agencies and which are effectively insulated from government involvement. Furthermore, these structures must involve the channeling of project foreign exchange earnings through offshore payments and escrow mechanisms. In some country environments, the only acceptable limited-recourse structures may be "enclave" projects that are almost completely insulated from the broader country environment. The extent of EnviroTech approval limits or amounts will take into account project structure and other conditions.
Secured Long-Range Aircraft Leases. EnviroTech approval of asset-secured long-range aircraft lease transactions requires that the airline's country of registry become a signatory to international conventions protecting aircraft property rights. Such approval for aircraft transactions in these markets is more likely for privately-owned airlines with established operating records. Depending on the nature of transaction participants and structures, EnviroTech may also require offshore payments and escrow mechanisms, or may provide a reduced percentage of credit approval. Aircraft transactions are subject to special fees and covenants.
Acceptable Borrower Outside the Country. Support may be available if an acceptable financial institution (e.g., commercial or multinational bank) outside of the country acts as the obligor.

It should be noted that these exceptions do not apply in countries where EnviroTech Financial, Inc is legally prohibited from operating or lending.