GSS NEWSLETTER ISSUE 113 September 2010 2

Content Dear Clients 4 JOHN'S CORNER 5 Austria 6 BT Asset Management Launches Licensing Procedure for a Passively 6 Belarus 7 Belarus placed Eurobonds 7 Belarus plans sovereign bonds issue on MICEX 7 National Bank reduced refinancing rate 7 Bosnia and Herzegovina 8 Bosnia and Herzegovina records an Increase of SWIFT Messages 8 Bulgaria 10 Established Link between UniCredit Bulbank and Polish Depositary Yields First Results 10 2010 Ranking of Finance Central Europe: UniCredit Bulbank is the strongest bank in Bulgaria by capital and assets 11 The Bulgarian Stock Exchange Continues to Develop Its Internet Site 11 Croatia 12 Stress test shows Croatia banking sector is stable 12 Banks in Croatia generated combined profit of HRK 2.2 bn 12 Czech Republic 13 CNB adjusts market-support operations introduced during crisis 13 CNB keeps interest rates unchanged 14 Hungary 15 Effect of Suspension of IMF Talks is Considered Only Temporary by the Hungarian Prime Minister 15 New Opportunities on the Budapest Stock Exchange 15 Kazakhstan 16 Fitch upgrades ratings of Kazakhstan’s Alliance Bank after the completion of restructuring 16 Poland 17 New regulations on disclosure requirements in terms of banking and insurance sector – reporting aspect 17 Romania 19 Economy 19 24% VAT was approved by the Senate 19 Central Bank 20

Issue 113, September 2010 3

Russia 21 MICEX plans IPO 21 MICEX Stock Exchange working out the rules for trading robots 21 Prime Minister proposed new rules for additional share issues registration 22 FAS plans to amend the legislation on foreign investors 22 New rules for Investment funds 22 Serbia 23 Country GDP Growth Flash Estimate 23 Slovak Republic 24 Bratislava Stock Exchange Trading in July 24 Absolute protection of bank deposits to be cancelled 25 Revision of SAX Index Base – Correction of BSSE Announcement published on 12 July 25 Slovenia 26 Annual Inflation at 2.1% – Deflation at monthly level 26 D&B Says Decline in Slovenia’s GDP Slowing Down 27 Ukraine 28 State Securities and Stock Market Commission of Ukraine to launch campaign against junk shares 28 Your Contacts 29 Disclaimer 32 Imprint 33

Issue 113, September 2010 4

Dear Clients

Jasmina Radicevic (Head of GSS Serbia)

It is my great pleasure to present to you UniCredit Bank From the beginning of the development of the Serbian capital Serbia and recent Serbian capital market developments in market, UniCredit Bank Serbia has recognized the needs of the September edition of our GSS Newsletter. its clients for quality securities services, which resulted in the creation of the first custody bank in Serbia. Now UniCredit This month is an important milestone for the Belgrade Stock Bank Serbia represents the leading custody bank in the Exchange as trading of shares of the national oil producer market, committed to providing top service to both inter- Naftna Industrija Srbije (NIS) commenced on 30 August. The national and domestic investors. Apart from the trust the listing of NIS, 51% of whose capital is owned by the Russian international institutional investors keep granting to UniCredit energy giant Gazprom, represents a long awaited strengthen- GSS team, its dominance in securities services business has ing of the Belgrade Stock Exchange prime market, and an been recognized also by the domestic investors. In 2006 and important, positive signal for investors. The listing came as a 2007, the years of the establishment of the Serbian pen- result of the recent changes to the Share Giveaway Law and sion and investment funds industry, UniCredit Bank Serbia Privatization Agency Law. By introducing these changes the was awarded with contracts for custody services for the first Government has created the legal framework for transforming established funds. The trust our clients have awarded us the remaining state owned companies to open joint stock with is a constant driver for our GSS team to continuously companies and their future inclusion to stock exchange list- increase the quality of our service and provide our clients with ing. Furthermore, the creation of the Share Giveaway Plan solutions made specifically for their business. allows for the distribution of a portion of shares of state owned companies to Serbian citizens as “free” shares. Apart from The full potential of the Serbian market infrastructure is yet the previously mentioned NIS, this plan shall include some to be achieved, and we take our responsibility towards our of the biggest Serbian companies: the telecommunication clients very seriously. A very important aspect of this respon- company Telekom Srbija, the Airport Nikola Tesla and the sibility is the representation of our clients and their needs in power company Elektroprivreda Srbije (EPS). the market, to aid the development of a friendly and uncom- plicated investing environment. We have discussed proposals UniCredit Bank Serbia continues to see significant opportuni- for significant improvements with the regulator and with other ties for both the country and its clients and is committed to market participants, and these should be taken into consid- their success. eration when the Government sets up new laws aiming at shifting Serbian market towards MiFID and EU regulations.

I would like to take this opportunity to thank all of our clients for being with us in the previous years. We stay committed to the growth of this market and our partnership in 2010.

Best regards,

Jasmina Radicevic Head of GSS Serbia

Issue 113, September 2010 5

JOHN'S CORNER

John Gubert

Within the current, proposed mass of directives and changes However, non cash assets are not held in the books of either to European securities regulation, there is much debate as the Global Custodian or the Sub Custodian. They may, often to the role of a depository. Specifically, there is a growing through a fully owned nominee subsidiary, have legal owner- view, at least within the European Commission, that inves- ship of those assets but they do not appear in their balance tors should be protected against custodian default. The last sheets and (with a few exceptions in countries that do not time this issue had such traction was in the US, when there distinguish between legal and beneficial ownership) there can was debate about the scope of change needed to US SEC be no doubt that they do not constitute part of the pool for 17.5. Some of the more extreme suggestions were then a prospective liquidator.. seen off by US custodians; quite simply, it is believed, they explained they could not remain in the business if the risks There are, however, two issues that create an element of became excessive. uncertainity. Firstly, in many countries the assumption that the distinction between legal and beneficial ownership will Since that debate, the scale of the problem has increased withstand the challenge of third party creditors is not proven exponentially. After all, total custody assets of the top global in law. And secondly there is always a possibility that proprie- custodians are said to equate to US$ 100 trn (although there tory assets and client assets are commingled by a delinquent is material double counting within that figure). If, even a low custodian and become tainted. risk weighting were applied to a modest proportion of those assets, the impact on bank capital would be dramatic. In the So, alongside any change in rules to enforce restitution of current climate, where regulators are requiring more capital assets by a Custodian, we need several legal changes. First, and less risks from the banks, it seems ridiculous to place we need clarity that assets held for a beneficial owner will be ring another risk burden on them. fenced in law in the event of a custodian default. And secondly we need to agree (as indeed happens in certain jurisdictions) However, the real risk could be made minimal, as long as that, where assets are commingled without the consent or any change in liability structures is accompanied by other knowledge of either the custodian or their client, claims for client rule changes. assets will always have a priority over those of other creditors.

First of all we need to differentiate between cash and non And, finally, Europe has to recognise that investment is global. cash assets. Client cash is normally held by Global Custo- We may be able to create the right environment within the dians on their own books and then deposited with their sub EC to protect investors and intermediaries. Although legisla- custodian in a nostro account. The liability is clear. Clients tors need to accept that, elsewhere, markets may not follow have a claim against the Global Custodian irrespective of such guidelines and regulation must surely allow for this, for failure of one or another sub custodian. precluding investment in non compliant jurisdictions is pos- sibly illegal and surely undesirable.

John Gubert

Issue 113, September 2010 6

Austria

BT Asset Management Launches Licensing Market Capitalisation EUR 71.4bn Procedure for a Passively YTD Dev. of Market Capitalisation -3.7% Managed Fund on ATX BT Asset Management launches the licensing procedure of Number of SE Transactions p.m. n.a. the BT Index Austria ATX, a passively managed fund on the YTD Dev. of SE Transactions n.a. ATX, the Austrian Traded Index. The ATX, the leading index SE Turnover (Vienna SE) EUR 4.0bn of the Vienna Stock Exchange, is a capitalization-weighted Monthly Index Performance (ATX/VSE) -5.9% price index, made up of 20 Austrian blue chip stocks traded GDP per Capita (2010 in EUR) 33,442 at the Vienna Stock Exchange. The index is calculated and GDP Real 2010 (Change against prev. year in %) 1.3 disseminated in real time and denominated in EUR. As of 31 July 2010, the ATX market capitalization amounted to 3-Month Money Market Rate (current in %) 0.88 EUR 58.87 bn, the effective tradable capitalization being Inflation in 2010 (yearly average in %) 1.8 EUR 35.20 bn. Upcoming Holidays none The ATX is a globally recognized brand name and reference Source: Bank Austria, National Statistics for the Austrian capital market. Worldwide, the index is used by more than 23 issuers (banks, insurance companies, asset managers) as underlying for their financial instruments, such Actual 38 Day moving average 200 Day moving average as structured products and standardized derivatives (futures 3000 and options). Currently, there are over 1.500 structured

2750 products (certificates, warrants, bonds), 2 Exchange Traded Funds and 2 passively managed funds linked to the ATX. 2500 “Banca Transilvania Asset Management is the first Eastern 2250 European financial institution that has received a license from Wiener Börse AG to use the ATX as underlying for a fund 2000 containing Austrian shares. We are happy to see an increas- 1750 ing interest of Romanian investors in companies listed on the

Jul Vienna Stock Exchange,“ said Michael Buhl, CEO of Wiener Apr Okt Jan Jun Mai Mrz Feb Aug Sep Aug Nov Dez Börse AG. Source: Thomson Datastream Source: Wiener Borse

Impact on investors For information purposes only.

Written and edited by: Thomas Rosmanitz Head of Relationship Management Austria Tel. +43 50505 58515 · [email protected]

Issue 113, September 2010 7 Belarus

Belarus

Belarus placed Eurobonds Market Capitalisation USD 12.0bn The Ministry of Finance of the Republic of Belarus reported YTD Dev. of Market Capitalisation n.a. the successful placement of the first tranches of sovereign Eurobonds for the total amount of USD 1 bn. Number of SE Transactions p.m. (BCSE) 2,444 YTD Dev. of SE Transactions 27.5% ■■USD 600 mn 5-years coupon 8.75% SE Turnover (BCSE) BYR 1.909bn ■■USD 400 mn 5-years coupon 8.251% Monthly Index Performance (BCSE) -26.8% GDP per Capita (2010 in EUR) 287 Preliminary rating of Standard & Poor’s is B+. GDP Real 2010 (Change against prev. year in %) 11.13 Belarus’ Council of Ministers has been authorized to implement 3-Month Money Market Rate (current in %) n.a. Eurobond issues amounting to USD 2 bn in 2010 until 2011, Inflation in 2010 (yearly average in %) 0.2 with a maturity of at least five years and floatation abroad. BYR/EUR 0,00026 Upcoming Holidays none Impact on investors Important milestone for Belarusian economy which shows

Source: Bank Austria, National Statistics strong intention of the country to become a part of the world financial market.

Belarus plans sovereign bonds issue on MICEX Belarus plans to issue sovereign bonds for the total amount of RUB 5-10 bn on the Russian market in September-October 2010. One of the agents for this issue, the largest Russian bank Sber- bank, reported that the Road Show for this issue was successful.

Federal Financial Market Services (FFMS) of Russia has prepared all required orders for this issue. The Central Bank of Russia has also prepared some amendments of legislation which allows Russian banks to evaluate the risk of the Com- monwealth of Independent States (CIS) bonds without any risk increment coefficient.

If this issue takes place Belarus will be the first foreign sovereign issuer on MICEX.

Impact on investors Additional investment possibility.

National Bank reduced refinancing rate On 9 August 2010 the National Bank of Belarus has announced a refinancing rate-reduction by 0.5% resulting to 11% effective from 18 August 2010. This is the third reduction of the rate in 2010:

■■From 13.5% to 12% in June;

■■From 12% to 11.5% in July.

Impact on investors Stimulation of economy activity.

Written and edited by: Evgenia Klimova Head of Product and Business Development, Global Securities Services Tel. +7 495 232-5298 · [email protected]

Issue 113, September 2010 8

Bosnia and Herzegovina

Law on foreign currency transactions adopted on entity Market Capitalisation (Sarajevo SE) BAM 7.2bn level YTD Dev. of Market Capitalisation 0.7% The House of Peoples at the Federal Parliament during the last session adopted the Law on Foreign Exchange Regula- Number of SE Transactions p.m. 1,269 tion in an urgent vote. YTD Dev. of SE Transactions -45.8% SE Turnover (SASE) BAM 5.7mn The previous legislation, adopted in 1988, international part- Monthly Index Performance (SAX-10/SASE) -6.0% ners evaluated as a major obstacle to the development of Market Capitalisation (Banja Luka SE) BAM 3.4bn financial markets, equity markets and payment operations with foreign countries. Amendments to the act in question, YTD Dev. of Market Capitalisation -8.3% adopted in the National Assembly of the Republic of Srpska Number of SE Transactions p.m. 2,050 last year, now allow undisturbed capital transactions with YTD Dev. of SE Transactions -38.2% foreign countries. SE Turnover (BLSE) BAM 31.4mn Monthly Index Performance (BIRS/BLSE) -2.6% Although Bosnia, as a part of the Stabilization and Association Agreement with the European Union, committed to bringing GDP per Capita (2010 in EUR) 3,239 this bill on the state level, the law never won the majority vote GDP Real 2010 (Change against prev. year in %) 0.5 at the Parliament. 3-Month Money Market Rate (current in %) n.a. Inflation in 2010 (yearly average in %) 2.3 Although the application of that law regulates many domains BAM/EUR 1.95 of the monetary policy, it is highly unlikely that it will be passed on to the national, state level by the end of the year. The Upcoming Holidays 9 September proposed Law Framework on Foreign Currency Transac- tions in Bosnia and Herzegovina provides for regulation of Source: Bank Austria, National Statistics current and equity transactions and their form of payment and billing between the residents (legal entities registered 1250 Actual 38 Day moving average 200 Day moving average in B&H, branches of foreign legal persons, entrepreneurs, 1200 individuals residing in B&H and foreign citizens, state bodies

1150 and organizations, diplomatic missions abroad) and non- residents (everybody else). 1100 1050 The law framework was devised to establish a unified, stable 1000 system of foreign currency transactions to Bosnia and Herze-

950 govina with the level of liberalization perfectly in line with the already defined and adopted Foreign Investment and Foreign 900 Trade Policy. 850 Jul Apr Okt Mai Jan Jun Mrz Feb Aug Sep Aug Nov Dez Impact on investors

Source: Bloomberg For information purposes only.

Bosnia and Herzegovina records an Increase of SWIFT Messages Within the regular activities, the SWIFT Senior Account Direc- tor for Eastern and Central Europe Stephan Kraft visited the Central Bank of Bosnia and Herzegovina (CBBH) and held a meeting with representatives of commercial banks and the CBBH. This is the regular meeting, organized at least once a year. The aim is to maintain contact with all commercial banks and the CBBH and to share all the news about SWIFT, such as new solutions that exist and which are related to payment or securities, and also to discuss the needs of banks in order to see how SWIFT can support them.

Issue 113, September 2010 9 Bosnia and Herzegovina

SWIFT was founded in the 70’s of the last century, and its Talking about the differences between the financial markets function can be, in simple terms, defined as a kind of post which BH belongs to, i.e. South-Eastern Europe, and Central office for financial industry, meaning the transfer of financial and Western Europe, Kraft emphasized that for this region a messages. «This is a good comparison; sometimes it is really high percentage of messages related to payment is typical, said it is the post office of the financial system, which means while in the countries such as Austria, Germany and France, that we take care about delivering any kind of financial infor- the ratio between the messages related to payments and mation. Historically, this is primarily related to payments, but messages related to securities is approximately 1:1. «In BH in the meantime we began to transmit the information related and countries likes Bosnia and Herzegovina, about 97% of to securities, shares, share capital, commercial papers, and all messages transmitted by SWIFT are still related to pay- then all information related to the stock markets, the financial ments», says Kraft. The SWIFT strategy is to reduce the markets, as well as trade finance, letters of credit etc. There- prices by 50% every five years, which it does regardless of fore, the main reason for the existence of SWIFT is not that the current crisis and problems in the financial markets. «Our it applies only to the payment, but the same infrastructure Board has decided that until 2015, comparing prices from is used for any kind of information that financial institutions 2010, the prices will be reduced, most likely by 30%, and share with each other», Kraft says. According to his words, maybe even by 50%», Kraft points out. SWIFT is growing because, in general, the whole industry is becoming globally oriented, meaning it has an international SWIFT is obviously changing; it is the post office of the character. He illustrated it with the explanation that, if interna- financial industry, however it wants to expand and to enter tional investors wish to join the local market, they want to use some new areas. «We have worked a lot in various areas and the same standards, regardless of whether they are Bosnian, with central banks, central depositories in various parts of Romanian or Austrian institutions. Therefore, an increasing the world in order to see how we can build the appropriate need for international standardization and harmonization is main system how to open ourselves so that the market can evident, Kraft states. become as transparent as possible and how to place the country as a whole in relation to international competition. Answering the question whether all the members, since there We want to offer this knowledge and this experience to other are also smaller and weaker countries, have equal rights in countries through consulting services, which means that this sense and how the interests of smaller members are we are working on research market studies, which may be represented, Kraft says that there is the Board. The size of connected with payments and securities», Kraft concluded. the Board and participation in it depend on the size of income Source: Central Bank of Bosnia and Herzegovina that each country participates with. Smaller countries are gathered in the European SWIFT Association (ESA), which Impact on investors is intended for small countries like BH, which means that the For information purposes only. interests of smaller countries, in comparison with larger countries such as the USA, Germany or France, are also taken into consideration when the strategy is prepared. Another important fact is that when it comes to issuing new standards, which takes place in November every year, the whole community and each country are asked to agree or disagree with the proposed amendments. «In this way we ensure that the big countries, meaning important institutions, as well as small countries, are taken into consideration», Kraft explains.

Talking about statistics or the number of messages that are transferred via SWIFT, these are millions of messages. The maximum value recorded last year was 18 mn messages only in one day. The global crisis influenced the SWIFT system, so 2009 was the first year in the history of SWIFT when the number of messages decreased comparing with the previous year. In the first quarter of 2010, there was again an increase of about 10%. BH is in accordance with the trends in terms of growth. Thus, in the first quarter of this year BH had the total of about 600,000 sent messages, which is an increase of about 2.6%. This is approximately the same level as it is in the neighbouring countries, says Kraft.

Written and edited by: Amra Telacevic Relationship Manager Tel. +387 33 562 816 · [email protected]

Issue 113, September 2010 10

Bulgaria

Established Link between UniCredit Bulbank and Market Capitalisation BGN 10.4bn Polish Depositary Yields First Results YTD Dev. of Market Capitalisation -10.3% The agreement between UniCredit Bulbank and the Polish Depositary (KDPW), enabling the listing of Bulgarian com- Number of SE Transactions p.m. 6,832 panies on the Warsaw Stock Exchange, has already yielded YTD Dev. of SE Transactions -23.2% concrete results: as of 11 August 2010 the shares of Inter- SE Turnover (Bulgarian Stock Exchange) BGN 36.8mn capital Property Development are traded on the Polish capital Monthly Index Performance (SOFIX) -0.8% market. Thus, it becomes the first Bulgarian company trad- GDP per Capita (2010 in EUR) 4,532 able in Warsaw. GDP Real 2010 (Change against prev. year in %) -1.0 The agreement on the establishment of an operational link 3-Month Money Market Rate (current in %) 4.01 between the Polish Depositary and UniCredit Bulbank (in the Inflation in 2010 (yearly average in %) 1.7 role of a custodian bank) was signed in mid-February and EUR/BGN 1.96 the two institutions promptly committed to working actively Upcoming Holidays 6, 22 September for real utilization of the established link enabling the listing of Bulgarian companies on the Warsaw Stock Exchange. Source: Bank Austria, National Statistics „The Polish depositary is working actively to attract foreign companies and, in particular, the ones from leading mar- Actual 38 Day moving average 200 Day moving average 550 kets in the region of Central and Eastern Europe,“ Iwona Sroka, President and CEO of the Polish Depositary, said. 500 The cooperation with Bulgaria, through the established link with UniCredit Bulbank, is a part of this strategy. 450 „We are happy that we already have a company that will 400 actually avail itself of the advantages of being listed on the Warsaw Stock Exchange, namely, access to more capital 350 and steady investment structure. Of course, this will also be

300 to the benefit of Polish investors as it would be easier for them

Jul to acquire shares of attractive Bulgarian companies,“ said Apr Okt Jan Mai Jun Mrz Feb Aug Aug Sep Nov Dez Mladen Zapryanov, Director for Global Transaction Services Source: Thomson Datastream at UniCredit Bulbank.

The link with Bulgaria via UniCredit Bulbank will not only enable the clearing and settlement of transactions involving shares of Bulgarian companies listed on the Warsaw Stock Exchange, but will also ensure the processing of corporate actions by KDPW in accordance with procedures based on Bulgarian market regulations.

This link will enable the performance of the following proc- esses in respect of the securities registered on the KDPW account in UniCredit Bulbank:

■■The processing of corporate actions, including:

■■increases of share capital, stock splits, share exchanges, assimilations, conversions, redemptions, and other reorganizations;

■■dividends, rights or other distributions which may be declared payable or distributable as of the relevant record date and payment date;

Issue 113, September 2010 11 Bulgaria

■■Proxy voting service for general meetings. The Bulgarian Stock Exchange Continues to Develop Its Internet Site ■■Automatic conversion of cash distributions (e.g. dividend In August 2010 the Bulgarian Stock Exchange introduced payments) to Polish-based holders of Bulgarian securities two new sections on its internet site www.bse-sofia.bg, a from BGN to EUR. Cross-border payment can be trans- new section “Public Offering” and a new section “General ferred intra-day to Polish bank accounts. Meetings of Issuers”.

■■Tax withheld on dividends by issuer at source (the Bul- The “Public Offering” section gives information to the wide garian issuer acts as withholding agent). Tax reclaims are public on the advantages and responsibilities of public com- possible: KDPW will assist in providing application forms panies, as well as a summary of the procedures and steps and tax documentation to its participants to process tax when organizing an initial public offering. It contains informa- reclaims for their clients. tion about:

The operational link with the Bulgarian market is a free-of- ■■the types of companies and the characteristics that make payment (FOP) type. The transfer of securities to and from them attractive for the investors the Polish market takes place across the accounts of KDPW participants and the KDPW account in UniCredit Bulbank ■■the public status of companies without change of beneficial ownership. It is worth underlining that KDPW participation fees for foreign issuers (including, ■■the costs associated with admission to trading on a regu- of course, Bulgarian issuers) are currently free of charge. lated market

■■the main steps when preparing the public offering Impact on investors Positive impact enabling trade and settlement of Bulgarian ■■the main criteria and characteristics when choosing an securities on the Polish market. investment intermediary, legal consultant and PR agency

■■the key points in relation to the specifics of the public of- 2010 Ranking of Finance Central Europe: UniCredit fering such as the size of the issue, target investors, the Bulbank is the strongest bank in Bulgaria by capital way in which the IPO will be executed, the issuing price, and assets method of payment to the investment intermediary, etc In the traditional ranking performed by the financial edition Finance Central Europe for 2010, UniCredit Bulbank was ■■the contents of the prospectus for public offering ranked number one among the banks in the country by capital and by assets. Because of its stable performance in ■■execution of the public offering the previous years, the London-based edition also awarded UniCredit Bulbank, the largest bank in Bulgaria, in the same In the section users can also find information on the charac- categories – capital and assets – with the special prize for teristics of the public companies life, the advantages of using best bank during the past ten years (2000-2010). a market-maker and the characteristics of the relations with investors, the regulatory body, the Exchange, the Central Finance Central Europe (FCE) is a London-based financial Depository and the media. edition, fully devoted to the development of the Southeast European markets. The edition’s annual ranking is done on The “General Meetings of Issuers” section provides access to the basis of comparison and analysis of main indicators of general meeting documents submitted to the BSE by publicly the banks in Southeast Europe in terms of condition of the traded companies. The section is organized in a convenient assets, capital, profit generation possibilities as well as effi- way to use the information, the documents being grouped ciency indicators assessment. The data which FCE uses, are in separate folders by company, event and in chronological from the audited annual statements of the banks certified by order. international audit companies. For the time being the sections are available only in Bulgarian. Their introduction is part of BSE’s strategy to spread aware- Impact on investors ness of the capital market and to facilitate the handling for For information purposes only. issuers and investors.

Impact on investors For information purposes only.

Written and edited by: Yavor Dojdevski Head of Global Securities Services, UniCredit Bulbank AD Tel. + 359 2 93 20 107 · [email protected]

Issue 113, September 2010 12

Croatia

Stress test shows Croatia banking sector is stable Market Capitalisation HRK 17.8bn Despite the expected continued pressure on earnings, a rela- YTD Dev. of Market Capitalisation 1.3% tively high capital adequacy of banks in Croatia will render them stable in the coming period, according to the Croatian National Number of SE Transactions p.m. 18,759 Bank’s latest publication “Financial Stability”. The publication YTD Dev. of SE Transactions -36.5% gives results of stress testing of banks. In a baseline scenario SE Turnover (Zagreb SE) HRK 856.4mn which foresees the beginning of the economic recovery in the Monthly Index Performance (Crobex/ZSE) 0.1% second half of 2010, a share of non-performing loans, which was GDP per Capita (2010 in EUR) 10,306 9% in March, is to rise above 10% towards the end of this year. GDP Real 2010 (Change against prev. year in %) -1.5 In a shock scenario, which is not very likely to happen and which predicts the continuation of the recession by the end of this year 3-Month Money Market Rate (current in %) 2.3 and the kuna’s depreciation against the euro by 10%, bad loans’ Inflation in 2010 (yearly average in %) 1.0 share would reach a ratio of 16%. However, even under that EUR/HRK 7.22 scenario, the banking sector as a whole would stay well capital- Upcoming Holidays none ized despite a significant decrease in capital adequacy ratio, the central bank said in the publication. In this scenario the capital Source: Bank Austria, National Statistics adequacy ratio would be 17.3%. The share of non-performing loans increased from 7.8% at the end of last year to 9.0% in

Actual 38 Day moving average 200 Day moving average March, as a result of the continuation of deteriorating economic 2400 trends which undermined the liquidity of the corporate sector and generated the fall in employment income of households. 2200 Impact on investors 2000 For Information purposes only.

1800 Banks in Croatia generated combined profit of HRK 2.2 bn 1600 In the first six months of 2010, banks in Croatia generated a Jul Apr Okt Jan Jun Mai Mrz Feb Aug Sep Aug Nov Dez combined pre-tax profit of HRK 2.2 bn, according to preliminary figures released by the Croatian National Bank (HNB). Source: Thomson Datastream This is 19.9% of HRK 554.4 mn less than the year before. All loan institutions – 32 commercial banks, two savings banks and five home savings banks – reported a gross profit of HRK 2.24 bn in the first half of 2010, which is HRK 562 mn less than the year before. Of the 32 banks operating in the market of Croatia, seven had losses, according to the central bank’s data. The seven loss-makers are small banks, and their combined loss amounted to HRK 85.1 mn. The total assets of the 32 banks in Croatia at the end of June totalled HRK 379.3 bn, or 0.29% more than at the end of June 2009. The total assets of all loan institutions in Croatia amounted to HRK 385.8 bn, up 0.19%. The top two banks, Zagrebacka Banka and Privredna Banka Zagreb, generated 49% of the total profit of all banks. Among the top six banks are also Erste&Steiermaerkische Bank, Raiffeisenbank, Societe Gen- erale – Splitska Banka, and Hypo Alpe Adria Bank.

Impact on investors For Information purposes only.

Written and edited by: Snjezana Bruncic Relationship Manager, Global Securities Services Tel. +385 1 6305 400 · [email protected]

Issue 113, September 2010 13

Czech Republic

CNB adjusts market-support operations introduced Market Capitalisation CZK 1.3trn during crisis YTD Dev. of Market Capitalisation 4.1% The Bank Board of the Czech National Bank has decided to adjust the extraordinary liquidity-providing monetary meas- Number of SE Transactions p.m. n.a. ures introduced in October 2008 to support the domestic YTD Dev. of SE Transactions n.a. financial market during the global financial crisis. Under the SE Turnover (Prague SE) CZK 60.0bn approved changes, which reflect current market conditions, Monthly Index Performance (PX) 6.4% the three-month liquidity-providing repo operations will be GDP per Capita (2010 in EUR) 13,661 discontinued at the end of 2010. The two-week liquidity- GDP Real 2010 (Change against prev. year in %) 1.8 providing repo operations will be conducted less frequently (once a week) as of January 2011. 3-Month Money Market Rate (current in %) 1.00 Inflation in 2010 (yearly average in %) 1.4 The Bank Board has decided that the two-week liquidity- EUR/CZK 24.75 providing repo operations will remain in place at least until 28 September, the end of 2011. According to a CNB survey, banks agree Upcoming Holidays 28 October that these extraordinary operations have been effective. The operations have been used in only very small volumes, how- Source: Bank Austria, National Statistics ever, the very fact that investors and market makers can use them increases liquidity and improves the functioning of the Actual 38 Day moving average 200 Day moving average government bond market. 1400 As in the case of repo operations, the Bank Board has short- 1300 ened to 14 days the maturity of the foreign exchange swaps 1200 that are used to provide koruna liquidity against the euro.

1100 Exchange of collateral remains one of the CNB’s instruments 1000 and from now on will be regarded as a standard operation. The CNB had already intended to introduce this measure 900 before the crisis, as it eliminates the inefficiency of securities 800 settlement systems and gives banks access to sufficient Jul Apr Okt Jan Mai Jun Mrz Feb Aug Aug Sep

Nov Dez securities to draw on intraday credit.

Source: Thomson Datastream “The measures to support the interbank market introduced in October 2008 have proven successful. In line with the original objective, they have helped to stabilise the government bond market and thereby prevent problems in foreign financial markets from spreading to the Czech financial sector,” said Kamil Janácˇek, member of the Bank Board overseeing the CNB’s Financial Markets Department. “Since these extraordinary operations were introduced, conditions have improved somewhat on the domestic market, allowing us to adjust their parameters,” he added. The CNB reserves the option to adjust the parameters further in response to market developments.

Issue 113, September 2010 14 Czech Republic

The technical parameters of the extraordinary interbank market support operations will change as follows as of January 2011:

Adjustment of two-week liquidity-providing repo operations until 31 December 2010 from 1 January 2011

Frequency of repo operation: twice a week (Monday and Friday) once a week (Monday)

Banks’ bids satisfied at fixed rate: 2W repo rate + 10 b.p. 2W repo rate + 10 b.p.

Note: The remaining parameters of liquidity-providing repo operations remain unchanged.

Adjustment of foreign exchange swaps until 31 December 2010 from 1 January 2011

Maximum maturity: three months two weeks

Haircut applied: 10% 5%

Note: Foreign exchange swaps are conducted on the basis of CNB keeps interest rates unchanged a bank’s request for the provision of koruna liquidity against The CNB Bank Board decided at its meeting on 5 August the euro. For the purposes of the swap, the exchange rate to keep interest rates unchanged. The two-week repo rate is lowered by 5% to eliminate exchange rate risk. The other was maintained at 0.75%, the discount rate at 0.25% and parameters (e.g. delivery after delivery settlement) remain the Lombard rate at 1.75%. unchanged. The history of settings of the main instruments of the mon- Exchange of collateral etary policy and the Bank Board minutes are available at (from now on a standard operation): http://www.cnb.cz/en/monetary_policy/instruments/index. On request, the CNB exchanges collateral settled in the html#mpi Central Securities Depository for collateral settled in the http://www.cnb.cz/en/monetary_policy/bank_board_min- Short-Term Bond System (SKD). The aim is to provide banks utes/index.html with enough securities, for example for drawing on intraday credit. The CNB does not regard the exchange of collateral Repo rate: The CNB’s key monetary policy rate, paid on as a classical monetary operation; rather, it is a technical commercial banks’ excess liquidity as withdrawn by the CNB operation aimed at eliminating malfunctioning of settlement in in two-week repo tenders. the Central Securities Depository for the purposes of drawing on intraday credit. Discount rate: A monetary policy rate which as a rule represents the floor for short-term money market interest rates. Source: CNB The CNB applies it to the excess liquidity which banks deposit with the CNB overnight under the deposit facility. Impact on investors For information purposes only. Lombard rate: A monetary policy interest rate which provides a ceiling for short-term interest rates on the money market. The CNB applies it to the liquidity which it provides to banks overnight under the lending facility.

Source: CNB

Impact on investors For information purposes only.

Written and edited by: Dita Šafárˇová Relationship Manager Tel + 420 221 216 772 · [email protected]

Issue 113, September 2010 15

Hungary

Effect of Suspension of IMF Talks is Considered Only Market Capitalisation HUF 17,867.3bn Temporary by the Hungarian Prime Minister YTD Dev. of Market Capitalisation 2.2% According to the opinion of the Hungarian Prime Minister Viktor Orban, Hungary’s present financial position is stable and pre- Number of SE Transactions p.m. 248,422 dictable, and provides a good basis for the government to YTD Dev. of SE Transactions 18.8% continue the restructuring and to kick start economic growth. SE Turnover (Budapest SE) HUF 716,964mn Speaking about the prospects of future strong economic Monthly Index Performance (BUX) -10.5% cooperation within the European Union, the Prime Minister said GDP per Capita (2010 in EUR) 9,833 Hungary’s financing needs could be met without the help of GDP Real 2010 (Change against prev. year in %) 0.5 the IMF. He added the country is in a relatively stable position, therefore there is a possibility for an economic reconstruction. 3-Month Money Market Rate (current in %) 4.65 Inflation in 2010 (yearly average in %) 5.0 The Prime Minister noted it showed the stability of the economic EUR/HUF 278,14 situation that the suspension of the talks with the IMF and the subsequent downgrades only resulted in temporary disturbances. Upcoming Holidays none Following these disturbances, however, both the forint rate and the bond-issue and bond-sale capacities are expected to return Source: Bank Austria, National Statistics to the level where the country’s operation can be regarded as stable, nevertheless, further downgrade could be in the pipeline. Actual 38 Day moving average 200 Day moving average 26000 Impact on investors

23500 Hungarian government temporarily suspended talks with the IMF.

21000 New Opportunities on the Budapest Stock Exchange

18500 In the remainder of 2010 there will be a few new opportunities to invest in at the Budapest Stock Exchange (BSE). 16000 Energy efficiency company RFV (ISIN: HU0000089198) has 13500 announced in August that the Hungarian Financial Super-

11000 visory Authority had approved the company’s plan for a HUF 10 bn corporate bond issue in the course of a public Jul Apr Okt Jan Jun Mai Mrz Feb Aug Sep Aug Nov Dez offering that is to take place in parts within the coming twelve Source: Thomson Datastream months. The first issue is planned for September 2010, prior to which further details will be revealed by RFV. Örmester Corporation, one of the first Hungarian security companies founded in 1990 in participation with the National and Budapest Police Department, is planning to launch their shares on the BSE in 2010, following the transformation of the corporation from private to public limited company. According to information available at this moment, the introduction of the shares will be, as a first step, only technical on the BSE, with no free float, however, the aim of the owners in the longer term is to make a certain amount of shares available for investors. CIG Pannonia Life Insurance Private Limited Company, founded in 2007 and run by Hungarian management has announced to plan an IPO of shares worth of HUF 434 mn until the end of 2010, in order to raise the registered capital of the company. Details of the IPO have not been revealed so far.

Impact on investors New investment opportunities on the BSE in the coming months.

Written and edited by: Zsanett Lencsés Senior Sales & Relationship Manager Tel. +36 1 301 1920 · [email protected] Issue 113, September 2010 16

Kazakhstan

Fitch upgrades ratings of Kazakhstan’s Alliance Market Capitalisation KZT 11,477.8bn Bank after the completion of restructuring YTD Dev. of Market Capitalisation 0.0% Fitch Ratings has upgraded Kazakhstan-based Alliance Bank’s long-term foreign currency Issuer Default Rating Number of SE Transactions p.m. 1,163 (IDR) to ‘B-’ from ‘RD’ (‘Restricted Default’), and assigned a YTD Dev. of SE Transactions 0.0% stable outlook. The rating action follows the completion of the SE Turnover (KASE) KZT 5.6bn restructuring of Alliance’s liabilities and concludes the review Monthly Index Performance (KASE) 1,480.0 of the bank’s ratings initiated by Fitch on 31 March 2010. GDP per Capita (2010 in EUR) 6,235 GDP Real 2010 (Change against prev. year in %) 5.0 Impact on investors 3-Month Money Market Rate (current in %) 1.70 For information purposes only. Inflation in 2010 (yearly average in %) 7.6 EUR/KZT 193,86 Upcoming Holidays none

Source: Bank Austria, National Statistics

Actual 38 Day moving average 200 Day moving average 2100

1900

1700

1500

1300

1100

900 Jul Apr Okt Mai Jun Jan Mrz Feb Aug Aug Sep Nov Dez

Source: Bloomberg

Written and edited by: Abdikali Nurbol Relationship Manager Tel. +7 727 258 30 15 · [email protected]

Issue 113, September 2010 17

Poland

New regulations on disclosure requirements in terms Market Capitalisation PLN 483.7bn of banking and insurance sector – reporting aspect YTD Dev. of Market Capitalisation 6.3% On 14 August new regulations on disclosure of sharehold- ing came into force. The regulations changed due to the Number of SE Transactions p.m. 933,253 amendments to the Banking Law, Act on Insurance Activity, YTD Dev. of SE Transactions 0.9% Investment Fund Act, Law on Trading in Financial Instruments SE Turnover (WSE) PLN 33.2bn and Act on the Financial Market Supervision introduced by Monthly Index Performance (WIG20) 8.9% the Act of 25 June 2010. New regulations only effect compa- Monthly Index Performance (WIG) 7.8% nies being stipulated by the amended acts, thus accordingly GDP per Capita (2010 in EUR) 8,893 domestic banks, domestic insurance companies, investment fund companies and brokerage houses. It is very important GDP Real 2010 (Change against prev. year in %) 2.6 to stress that the existing Law on Public Offering specify- 3-Month Money Market Rate (current in %) 3.71 ing disclosure requirements for publicly listed companies Inflation in 2010 (yearly average in %) 2.5 from all sectors remains unchanged due to the fact that no EUR/PLN 3.98 new reporting thresholds were added. Investors might be Upcoming Holidays none interested mainly in those regulations which refer directly to companies being listed on the Warsaw Stock Exchange, Source: Bank Austria, National Statistics such as domestic banks and domestic insurance companies. The most significant changes concern reporting to the Polish

Actual 38 Day moving average 200 Day moving average Financial Supervision Authority in particular on situations of 2700 intention of:

2500 ■■acquiring or taking up 10%, 20%, one third (33⅓ in the Act on Public Offering), 50% of the total vote or share 2300 capital in a domestic bank or an insurance company and intention of becoming a predominant shareholder of such 2100 companies in way other than by acquiring or taking up the

1900 majority stake in these companies contrary to the previous regulations where an investor is intending to acquire or 1700 take up shares resulting in achieving or exceeding 10%, Jul Okt Apr Mai Jan Jun Mrz Feb Nov Dez Aug Sep Aug 20%, 25%, 33%, 50%, 66% or 75% of the total vote were required to apply to the PFSA for approval to exercise vot- Source: Thomson Datastream ing rights at a general meeting respectively to the threshold notified (art.25 of the Banking Law dated 29 August 1997 and art.35 of the Act on Insurance Activity);

■■disposal of shares resulting in a new threshold over 10% of the total vote in a domestic bank and intention of disposal of shares resulting in new threshold maintained below 10%, 20%, one third, 50% of the total vote in a domestic company contrary to the old requirements where investors intending to dispose the shares resulting in the remaining threshold that would entitle to less than 10%, 20%, 25%, 33%, 50%, 66% or 75% of the total vote in a domestic bank were required to notify the PFSA of their intentions (art.25p. of the amended Banking Law);

■■disposal of shares resulting in a new threshold maintained respectively below 10%, 20%, one third, 50% of the total vote or share capital in an insurance company or situation in which that insurance company would not be a depend- ent entity any longer (the notification to the PFSA should

Issue 113, September 2010 18 Poland

be delivered within 14 days before the planned disposal contrary to the old regulations where investors intending to dispose the shares resulting in the remaining threshold 1 that would entitle to less than 10%, 20%, 33% /3, 50% of the total vote or share capital in an insurance company, were required to notify the PFSA and that insurance company of their intentions (art.36 of the amended Act on Insurance Activity);

New regulations specify also that investors being a depend- ant entity intending directly to acquire or take up shares in the relevant companies or become their predominant shareholder shall be required to notify the PFSA together with their parent company while the same investors intending indirectly to acquire or take up shares of the relevant companies or become their predominant shareholder only their parent company shall be required to notify the PSFA. Absolutely new is an obligation of reporting to the PFSA on taking up or acquiring of shares in the relevant companies by investors acting in concert for the purposes of executing voting rights on the level of thresholds required to notify (art.25.7 of the Banking Law and art.35.7 of the Act on Insurance Activity). They report jointly as concert parties. Investors applying to the PFSA with a notification must also provide with supporting documentation approved by an appropriate consul and delivered in a Polish language version. This procedure is stipulated respectively by the art.25a – 25d and art.25f-25g of the Banking Law and art.35a – 35d and art.35f – 35g of the Act on Insurance Activity. Foreign investors (non-residents) are obliged by the new regulations to appoint their local proxy while reporting to the PFSA in order to enable the regulator to send all correspondence to that proxy or the correspondence remains in files as delivered properly to the notifying investor. The exception refers to the final decision in the subject of notification. Not obeying this provision may result in serious consequences for the notifying investor due to the fact of being not aware of any calls crucial for the decision-making process in the subject of the notification (art.25e – 25f of the Banking Law and art.35e – 35f of the Act on Insurance Activity). In the worst scenario the Regulator may oppose the planned acquisition or taking up of shares within 60 business days since the receipt of the notification together with complete supporting documentation required (art.25h – 25i of the Banking Law and art.35h – 35i of the Act on Insurance Activity).

Impact on investors Investors have to be aware of new regulations on disclosure requirements especially including reporting procedures that have become effective as of 14 August 2010. The amendments to the existing regulations just introduced should be perceived as a following step to adapt the Polish legal framework to EU Markets in Financial Instruments Directive (MIFID) in terms of procedural principles of applying caution policy in companies of the financial sector.

Written and edited by: Marta Boboryk Relationship Management Tel. +48 22 524 5861 · [email protected]

Issue 113, September 2010 19

Romania

Economy Market Capitalisation RON 92.0bn Romanian economy registered an increase in Q2 2010 YTD Dev. of Market Capitalisation 63.7% Romania’s economy again shows signs of recovery and registered an increase in the second quarter of 2010 from the Number of SE Transactions p.m. 49,436 previous quarter for the second time since the beginning of YTD Dev. of SE Transactions -58.3% the recession in 2009. SE Turnover (Bucharest SE) RON 417.4mn Monthly Index Performance (BET/BSE) 7.0% The gross domestic product in the second quarter 2010 GDP per Capita (2010 in EUR) 5,763 was, in real terms, by 0.3% higher than in the first quarter of 2010 (seasonally adjusted data). But when compared GDP Real 2010 (Change against prev. year in %) -0.9 with the same quarter in 2009, the gross domestic product 3-Month Money Market Rate (current in %) 6.46 decreased by 0.5% in the gross series and by 0.6% in the Inflation in 2010 (yearly average in %) 4.7 seasonally adjusted series. EUR/RON 4.23 Upcoming Holidays none During the recession Romania’s economy also grew in the third quarter of 2009 from the previous quarter, by 0.1 , but afterwards it went on declining. Source: Bank Austria, National Statistics Romania entered recession after its economy had registered Actual 38 Day moving average 200 Day moving average decreases for two quarters in a row, in the fourth quarter 2700 2008 from the third quarter 2008 as well as in the first quarter

2500 2009 from the fourth quarter 2008.

2300 Impact on investors Economy recovery signs in second quarter 2010. 2100

1900 24% VAT was approved by the Senate

1700 The Senate gathered on Tuesday in an extraordinary session,

Jul approved the Government’s Emergency Ordinance 58/ 2010, Okt Apr Mai Jan Jun Mrz Feb Nov Dez Aug Sep Aug by which the VAT is maintained at 24%. The Senate passed

Source: Thomson Datastream the Bill with 64 votes “in favor” and 50 votes “against”. Earlier on Tuesday, the government’s ordinances aimed at raising VAT and respectively, at modifying the local public finance law, which was debated in the Budget-Finance Committee. The members of the Committee opposed the increase of the VAT from 19 to 24%. The Minister of Finance, Sebastian Vladescu, present in the debate, refused to make any comments.

Impact on investors Public finance law amendment was approved.

Issue 113, September 2010 20 Romania

Central Bank Central Bank report regarding credit risk According to the Financial Stability Report on 2010 released by the National Bank of Romania (NBR), credit risk remains the main vulnerability of the banking sector. Companies’ and households’ capacity to properly service their debt is con- strained by the prolonged and deep economic contraction, as well as the significant degree of indebtedness, in general, and high foreign currency-denominated debt, in particular, for some categories of borrowers. Financial stability remained resilient during 2009 and H1, on the background of increasing bank capitalization to comfortable levels, maintaining adequate liquidity and sustained provisioning efforts, the report shows.

The banking sector resilience and the capacity to withstand shocks were also backed by the stress testing results to economic shocks, according to NBR’s assessment. Inter- national macroeconomic developments and the ongoing domestic adjustments are important factors that put pressure on financial stability in the short term.

Impact on investors Credit risk remains the main vulnerability of the banking sector.

Written and edited by: Irina Savastre Head of GSS Tel. +40 21 200 26 70 · [email protected]

Issue 113, September 2010 21

Russia

MICEX plans IPO Market Capitalisation RUB 14.6trn MICEX Group intends up to the end of next year to become YTD Dev. of Market Capitalisation 11.2% the full owner of the MICEX Stock Exchange in the transition to a single share. After this step, the MICEX will be ready to Number of SE Transactions p.m. (MICEX) 9,076,917 IPO, which will lead to a reduction in the group share of the YTD Dev. of SE Transactions -13.8% Bank of Russia. Sergei Shvetsov, Director of financial markets SE Turnover (MICEX) RUB 5.2trn department, Board of directors’ member of MICEX Stock Monthly Index Performance (RTS) 7.2% Exchange has confirmed the intention to launch IPO after GDP per Capita (2010 in EUR) 8,244 2011. In preparation for the IPO there is a transformation in GDP Real 2010 (Change against prev. year in %) 3.4 the ownership of the MICEX Group. 3-Month Money Market Rate (current in %) 3.52 These plans also require changes to the law “On securities Inflation in 2010 (yearly average in %) 6.2 market”, which currently prohibits a shareholder to have more EUR/RUB 39.51 than 20% of the stock exchange. As reported by Mr. Shvetsov, Upcoming Holidays none the bill with proper amendments is introduced to the Duma.

Source: Bank Austria, National Statistics Impact on Investors Consolidation of MICEX Group will strongly contribute to Actual 38 Day moving average 200 Day moving average general market infrastructure development and could lead 6200 to planned creation of International Financial Centre in 5700 Moscow.

5200

4700 MICEX Stock Exchange working out the rules for

4200 trading robots MICEX Stock Exchange has distributed the invitation among 3700 participants to contribute to new rules of trading in respect 3200 of trading robots risks. MICEX expressed concerns regard- 2700 ing the increase of trading robot activity which could affect Jul

Apr the stock exchange operations. The main goal of proposed Okt Jun Jan Mai Mrz Feb Aug Aug Sep Nov Dez amendments to trading rules is to eliminate the infrastructure Source: Thomson Datastream risks and to avoid the overload of trading technical complex.

Currently trading robots execute more than half of all trading orders on MICEX Stock Exchange and 90% of the orders on FORTS section of the Russian Trading System (RTS).

MICEX proposed to implement the system of robot identification in order to scan its activity and also disconnect such robot in case its activity could damage the normal functions of the trading system. Currently, the proposed trigger for identification is 1% of the daily orders volume which is equal to 40,000 orders.

RTS also stresses the efforts to encourage the participant to use more advanced robots – as one of the measure RTS has increased the fee for the quantity of daily transactions over the specified limit.

Impact on Investors New rules should improve the stock exchange activity and avoid technical crashes due to hyperactive trading robots.

Issue 113, September 2010 22 Russia

Prime Minister proposed new rules for additional New rules for Investment funds share issues registration Federal Financial Markets Service (FFMS) has issued the Prime Minister Vladimir Putin proposed to cancel state reg- order concerning some amendments of mutual investment istration procedure for new issues of the shares listed on the funds activity: stock exchange. This step should allow to reduce administra- tive costs and to provide investors with the possibility to trade ■■ETF (Exchange Traded Funds) could be included into in- with new share issue right after placement without waiting vestment fund assets; for state registration. ■■Funds of mixed investments could keep up to 50% assets Federal Financial Markets Service (FFMS) should prepare the in the shares and equities of investment funds (previously draft for Law “On Securities Market” amendment in order to 15%); simplify the share issue process for the companies listed on ■■ Russian stock exchanges. The main idea of this draft is to The real estate assets could be sold within 1 year (previ- eliminate double control of share issue process performed ously 6 months). currently by FFMS and stock exchange. Impact on Investors Impact on Investors New investment opportunities for fund managers. Improvement of new shares issue process for the companies included into listing on Russian stock exchanges.

FAS plans to amend the legislation on foreign investors The Federal Anti-Monopoly Service (FAS) plans to amend the Law “On Foreign Investments in Companies Having Strate- gic Importance”. According to the proposed amendment, foreign investors will be not obliged to obtain FAS approval for share purchase in case this purchase is done within the mandatory tender offer.

The mandatory tender offer shall be announced by large shareholders according to the law “On Joint Stock Com- panies” in case shareholder accrues more than 30% of the share capital.

Once FAS completes this amendment foreign shareholders will be only obliged to report stake increase in the result of mandatory tender offer procedure.

Impact on Investors Harmonization of legislation will create more efficient investment rules for foreign companies.

Written and edited by: Evgenia Klimova Head of Product and Business Development, Global Securities Services Tel. +7 495 232-5298 · [email protected]

Issue 113, September 2010 23

Serbia

Country GDP Growth Flash Estimate Market Capitalisation RSD 860.0bn According to the announcement made by Serbian Statistic YTD Dev. of Market Capitalisation -1.7% Office Director, Mr. Dragan Vukmirovic, to the local press agency Tanjug, Serbia’s gross domestic product (GDP) raised Number of SE Transactions p.m. 3,828 1.6% in the second quarter of 2010, after 0.6% year-on-year YTD Dev. of SE Transactions 9.8% increase in Q1 2010. Up to now, no official information was SE Turnover (Belgrade SE) RSD 1.6bn made available on the Statistic Office’s official website. Monthly Index Performance (Belex 15) -0.6% GDP per Capita (2010 in EUR) 4,036 Previous Statistic Office flash estimate, given in late April 2010 as first of its kind, projected Q1 expansion at 1% and GDP Real 2010 (Change against prev. year in %) 0.0 was revised by downgrading the forecast in regular June 3-Month Money Market Rate (current in %) 10.51 2010 report. Inflation in 2010 (yearly average in %) 5.1 EUR/RSD 105.50 Regardless of the downsizing of GDP estimates, figures show Upcoming Holidays none Serbia’s steady growth and emerging from crisis, as previous 4 quarter figures reflected the country’s decline, when Serbia’s GDP decreased by 3% in 2009. Source: Bank Austria, National Statistics Serbian Prime Minister Mr. Mirko Cvetkovic announced earlier 900 Actual 38 Day moving average 200 Day moving average in July 2010 that the country’s GDP is projected to grow up 850 to 2% in 2010, compared to the 1.5%-forecast made by the 800 International Monetary Fund (IMF).

750

700 Impact on investors Serbia on a steady path of growth and crisis emerging, as 650 flash estimate raise Q2 GDP. 600

550

500 Jul Apr Okt Jun Jan Mai Mrz Feb Aug Aug Sep Nov Dez

Source: Bloomberg

Written and edited by: Goran Platisa Senior Corporate Actions and Tax Specialist Tel. +381 11 3028 687 · [email protected]

Issue 113, September 2010 24

Slovak Republic

Bratislava Stock Exchange Trading in July Market Capitalisation EUR 25.7bn In July 2010, the members of the Bratislava Stock Exchange YTD Dev. of Market Capitalisation 8.0% (BSSE) used the electronic trading system in 21 business days. The total trading volume in this period amounted nearly Number of SE Transactions p.m. 515.0 to EUR 466.4 mn in 556 concluded transactions. Although the YTD Dev. of SE Transactions 12.9% number of transactions increased by nearly 8% in comparison with SE Turnover (Bratislava SE) EUR 0.5bn the previous month; the financial volume went down (-6.58%). A Monthly Index Performance (SAX/BSSE) 0.1% year-on-year comparison, on the other hand, shows a 45.78% GDP per Capita (2010 in EUR) 12,068 increase in volume and a 232.93% increase in the number of GDP Real 2010 (Change against prev. year in %) 3.5 transactions. 3-Month Money Market Rate (current in %) n.a. Similar to previous periods, negotiated deals dominated over Inflation in 2010 (yearly average in %) 1.3 electronic order book (i.e. price-setting transactions), with the EUR/SKK n.a. former representing 99.28% of the total trading volume. A Upcoming Holidays 1, 15 September total of 169 negotiated deals in a volume of EUR 463.03 mn were concluded, as opposed to 387 electronic order book

Source: Bank Austria, National Statistics transactions in a financial volume of EUR 3.36 mn. In July 2010 investors continued to focus on debt securi- 900 Actual 38 Day moving average 200 Day moving average ties, as bond transactions generated as much as 97.65% 850 of the total volume. A total of 143 bond transactions were 800 concluded in the period under review, in a volume totalling

750 nearly EUR 455.43 mn. Only the number of transactions increased (+32.41%) on a month-on-previous-month basis, 700 whereas the achieved financial volume decreased by 0.57%. 650 Equity securities of local companies were bought and sold in 600 413 transactions, in a financial volume of EUR 10.97 mn. In 550 comparison with June 2010, it represents a 73.39% decrease

500 in achieved volume, the number of concluded transactions rose by 1.47%. Nevertheless, both indicators dramatically Jul Apr Okt Jun Jan Mai Mrz Feb Aug Aug Sep Nov Dez increased on a year-on-year basis: the number of concluded Source: Thomson Datastream transactions by 1,047.22% and the volume by 3,874.83%. Similar to the previous month, a substantial part (i.e. 76.24%) of the volume of share transactions was generated in negotiated deals with the share issue of Tatry mountain resorts.

A total of 3,279 transactions in a financial volume of EUR 4.32 bn have been cumulatively concluded on the BSSE since the start of the year 2010. It represents a 29.10% decline against a compara- ble period of the previous year. Transactions concluded by non- residents in July 2010 represented 55.03% of the total volume.

As of the last trading day of the month of July 2010, the market capitalisation of equity securities decreased by 2.01% on a month-on-previous-month basis to EUR 3.24 bn. The market capitalisation of bonds amounted to EUR 22.45 bn, representing a 0.46% increase on a month-on-previous month basis. The SAX index ended the month of July 2010 at 213.76 points, representing a 0.08% increase on a month-on- previous-month basis and a 27.54% decrease year on year.

Impact on investors BSSE performance in July 2010.

Issue 113, September 2010 25 Slovak Republic

Absolute protection of bank deposits to be cancelled Revision of SAX Index Base – Correction of BSSE The absolute protection of bank deposits without a limit and Announcement published on 12 July participation of depositor in the protection is going to change In the previous newsletter we informed about the regular when a fixed limit will be set for guarantees. The EU Directive revision of SAX Index base made by the Bratislava Stock on Deposit Guarantee Schemes sets the limit at a maximum of Exchange (BSSE) on 12 July 2010. EUR 100,000 as of the end of this year. Therefore, the unlimited coverage in the deposit protection law must be amended to a The revision by the Commission: maximum of EUR 100,000, according to a draft amendment ■■ to the deposit protection law currently in the interdepartmental Decided to include the companies Best Hotel Prop- review. The coverage in the EU directive was initially set at erties (SK1120005105) and Tatry mountain resorts EUR 20,000, but the limit turned out insufficient. As of 30 June (SK1120010287) in the base of SAX Index by accepting 2009 the coverage increased to EUR 50,000. In November of maximum 20 % weight of each participant in the SAX 2008, the Slovak Republic introduced unlimited deposit cover- Index basket. age to preserve the stability of the financial market and trust of ■■Set the adjustment coefficients to the equal value. depositors during the financial crisis. As of 31 December 2010, the coverage limit should be set at EUR 100,000.

Deposit Protection concerns bank deposits of all natural persons and natural persons -entrepreneurs. The statutory protection includes also the bank deposits of selected non-profit non- business artificial legal entities, i.e. the deposits of foundations, non-investment funds, not-for-profit organisations providing generally beneficial services, civic associations and associations of owners of apartments and non-residential premises.

Impact on investors Deposit Protection Act will be changed, the coverage limit will be set at EUR 100,000.

BSSE corrected its announcement and amended the number of securities in each issue as follows:

SAX Index base before and after revision

before revision after revision Number of securities in Number of securities in Name of company Abbreviation of company issue issue Biotika BSL 983 199 983 199 OTP Banka Slovensko OTP 5 455 841 11 503 166 SES Tlmacˇe SES 1 565 345 1 565 345 Slovnaft SLN 653 339 1 262 027 VÚB VUB 598 823 1 027 651 Tatry mountain resorts SKI – 1 807 426 Best Hotel Properties SRA – 7 193 555

Impact on investors New base of the SAX Index will come into force on 2 August 2010.

Written and edited by: Zuzana Milanova Sales & Relationship Manager Tel. +421 2 4950 3702 · [email protected]

Issue 113, September 2010 26

Slovenia

Annual Inflation at 2.1% – Deflation at monthly level Market Capitalisation EUR 20,564mn Slovenia’s inflation rate rose by 0.2 percentage points to YTD Dev. of Market Capitalisation 5.0% 2.1% at the annual level in July, even though consumer prices fell by 0.7% at the monthly level, according to official sta- Number of SE Transactions p.m. 9,349 tistics. Measured with the harmonised index of consumer YTD Dev. of SE Transactions -27.0% prices, an EU benchmark, the annual inflation rate was 2.3%, SE Turnover (Ljubljana SE) EUR 31.0mn while the 12-month average price growth was 1.6%, the Monthly Index Performance (SBI 20) -7.7% Statistics Office said on Friday, 30 July 2010 . Contributing GDP per Capita (2010 in EUR) 17,515 most to monthly deflation were summer sales, which pushed GDP Real 2010 (Change against prev. year in %) 0.9 the prices of clothing and footwear down 15.9% in July. The fall contributed 1.3% to monthly deflation. The prices of 3-Month Money Market Rate (current in %) 0.88 second-hand cars fell by 4.0%, while the prices of telephone Inflation in 2010 (yearly average in %) 2.0 services and equipment decreased by 1.5% on account of Upcoming Holidays none new discounts. Each contributed 0.1 percentage points to deflation. At the annual level, prices dropped in the groups Source: Bank Austria, National Statistics clothing and footwear (by 2.1%), transport (by 1.2%) and recreation and culture (by 0.6%). July saw a 10.7% hike in Actual 38 Day moving average 200 Day moving average the prices of package holidays, which pushed the prices in 350 the group recreation and culture up by 3.1%. Dental services 325 were dearer by 8.2%, while prices of electricity, gas and other

300 fuels rose by 1%, gas and heat energy prices went up by 2.2% and liquid fuel prices rose by 2.1%. Contrary to expec- 275 tations, the prices of seasonal food products increased; fruit 250 was costlier by 3.2%, fish by 2.6% and vegetables by 2.3%. 225 Alcoholic beverages were more expensive too. Beer prices rose by 1.7% and process of spirits by 1.3% due to higher 200 excise duties, while wine prices rose by 1.7% as special 175 offers ended. At the annual level, prices increased most in Jul Apr Okt Jan Mai Jun Mrz Feb Aug Aug Sep Nov Dez the group housing, water, electricity, gas and other (12.4%), alcoholic beverages and tobacco (5.2%), health, and food Source: Thomson Datastream and non-alcoholic beverages (2.8%) and education (1.9%).

Commenting on the statistics, the Institute of Macroeconomic Analysis and Development attributed monthly deflation to the seasonal trend in the prices of clothing and footwear, while it said the annual inflation rate reflected low economic activity. Consumer prices were also affected by excise duties, the exchange rate of the euro against the US dollar, and global prices of energy products, the government think-tank said.

Impact on investors For information purposes only.

Issue 113, September 2010 27 Slovenia

D&B Says Decline in Slovenia’s GDP Slowing Down The rating firm Dun&Bradstreet (D&B) has established in its June report for Slovenia that the decline in the country’s GDP at the annual level is slowing down, but that economic activity is also dropping. D&B is also concerned that too rapid fiscal measures could dampen economic activity further.

The only increase was recorded in government spending, D&B says in the report which focuses on relations between Slovenia and Croatia in the light of the referendum on the border arbitration treaty in Slovenia.

Slovenia’s cross-border payment performance improved in June and the share of delayed payments in Slovenia slightly decreased, according to Bonitetna hisa I. D&B kept Slov- enia’s rating at DB2c, which means low levels of risk. The rating trend is labelled as stable.

Impact on investors For information purposes only.

Written and edited by: Elmedina Garibovic Relationship Manager Tel. +386 1 5876 453 · [email protected]

Issue 113, September 2010 28

Ukraine

State Securities and Stock Market Commission of Market Capitalisation UAH 199.0bn Ukraine to launch campaign against junk shares YTD Dev. of Market Capitalisation -3.3% State Securities and Stock Market Commission (SSSMC) of Ukraine specified criteria for defining “junk” shares, used for Number of SE Transactions p.m. 31,292 various fraud schemes. YTD Dev. of SE Transactions 377.0% SE Turnover (PFTS) UAH 3.7bn SSSMC introduced a program on preventing the issue and Monthly Index Performance (PFTS) 6.9% circulation of securities which may be used for counter-pro- GDP per Capita (2010 in EUR) 2,504 ductive capital outflow, tax evasion, legalization of income received illegally. GDP Real 2010 (Change against prev. year in %) 3.0 3-Month Money Market Rate (current in %) 6.00 The program envisages the listing of issuers and persons, Inflation in 2010 (yearly average in %) 9.6 involved in issue and circulation of “junk” shares, monitoring EUR/UAH 10.45 of professional participants of a stock market and investors Upcoming Holidays 23, 24 August with respect to dealing with such shares. The creation of the prevention program was triggered by Source: Bank Austria, National Statistics numerous applications from State Tax Administration about the use of “junk” shares for tax evasion purposes and outflow Actual 38 Day moving average 200 Day moving average 350 of funds. According to SSSMC, unavailability of the issuer at its registered address and long delays in submission of 325 reporting are the signs that the issuer issues “junk” shares. 300

275 Impact on investors

250 Regulator SSSMC introduced program on preventing issue and circulation of “junk” shares. 225

200

175 Jul Apr Okt Jan Mai Jun Mrz Feb Aug Aug Sep Nov Dez

Source: Thomson Datastream

Written and edited by: Ganna Sankina Relationship Manager Tel.: +38 044 590 1209 · [email protected]

Issue 113, September 2010 29

Your Contacts

Regional responsibility Bosnia and Herzegovina Attila Szalay-Berzeviczy UniCredit Bank d.d. Tel. +35 1 301 1910 Zelenih Beretki 24 [email protected] BA-71000 Sarajevo Bosnia Pawel Muszalski Tel. +43 50505 57315 Lejla Sabljica [email protected] Tel. +387 33 562 777 [email protected] Markus Winkler Tel. +43 50505 58547 Amra Telacevic [email protected] Tel. +387 33 562 816 [email protected] Sven Trahan Tel. +43 50505 57311 [email protected] Bulgaria Beata Szonyi UniCredit Bulbank AD Tel. +36 1 301 1924 6 Vitosha Boulevard, 2nd floor [email protected] BG-1000 Sofia Ewa Stupkiewicz Bulgaria Tel. +43 50505 58511 Yavor Dojdevski [email protected] Tel. +359 2 9320 107 Philipp Aschl [email protected] Tel. +43 50505 58508 Veselin Stefanov [email protected] Tel. + 359 2 93 20 112 [email protected] Austria UniCredit Bank Austria AG Croatia Julius Tandler-Platz 3 Zagrebacka Banka d.d. A-1090 Vienna Savska 60/IV Austria HR-10000 Zagreb Günter Schnaitt Croatia Tel. +43 50505 58501 Valerija Bezak [email protected] Tel. +385 1 6305 430 Thomas Rosmanitz [email protected] Tel. +43 50505 58515 Snjezana Bruncic [email protected] Tel. +385 1 6305 400 Tina Fischer [email protected] Tel. +43 50505 58512 [email protected]

Stephan Hans Tel. +43 50505 58513 [email protected]

Georg Markus Schneider Tel. +43 50505 58509 [email protected]

Issue 113, September 2010 30 Your Contacts

Czech Republic Poland UniCredit Bank Czech Republic a.s. Bank Polska Kasa Opieki SA (short: Bank Pekao) Revolucni 7 Ul. Grzybowska 53/57 CZ-110 05 Prague PL-00-950 Warsaw Czech Republic Poland

Michal Stuchlik Tomasz Grajewski Tel. +420 22121 6770 Tel. +48 22 524 5867 [email protected] [email protected]

Dita Safarova Mariusz Piekos Tel. + 420 221 112 942 Tel. +48 22 524 5852 [email protected] [email protected]

Tomas Vacha Kamil Polak T. + 420 221 216 773 Tel. +48 22 524 5863 [email protected] [email protected]

Marta Boboryk Hungary Tel. +48 22 656 10 92 [email protected] UniCredit Bank Hungary Zrt. Szabadsag ter 5 – 6, 6th floor Krzysztof Pekrul H-1054 Budapest Tel. +48 22 524 5864 Hungary [email protected]

Júlia Romhányi Marek Cioroch Tel. +36 1 301 1923 Tel. +48 22 524 5862 [email protected] [email protected]

Zsanett Lencses Tel. +36 1 301 1920 Romania [email protected] UniCredit Tiriac Bank S.A. Livia Meszaros Ghetarilor Street 23 – 25 Tel. +36 1 301 1921 RO-014106, Bucharest 1 [email protected] Romania

Irina Savastre Kazakhstan Tel. +40 21 200 2670 [email protected] JSC ATF Bank Furmanov Street 100 Viviana Traistaru KZ-050000 Almaty Tel. +40 21 200 2673 Republic of Kazakhstan [email protected]

Vladimir Vassilyev Tel. +7 727 258 3015 (1353) Russia [email protected] ZAO UniCredit Bank Natalya Kolnogorova 9, Prechistenskaya Emb. Tel. +7 727 258 3015 (1232) RU-119034 Moscow [email protected] Russian Federation

Alexander Nazarov Tel. +7 495 258 73 49 [email protected]

Issue 113, September 2010 31 Your Contacts

Serbia Ukraine UniCredit Bank Serbia JSC UniCredit Bank LLC Omladinskih Brigada 88 14a, Yaroslaviv Val RS-11070 Belgrade UA-01034 Kyiv Serbia Ukraine

Jasmina Radicevic Bohdana Yefremova Tel. +381 11 3028 611 Tel. +380 44 230 3341 [email protected] [email protected]

Goran Platiša Elizaveta Sotnichenko Tel. +381 11 3028 687 Tel. +380 44 590 1208 [email protected] [email protected]

Ganna Sankina Slovakia Tel.: +380 44 590-1209 [email protected] UniCredit Bank Slovakia A.S. Sancova 1/A Katherine Yevtushenko SK-811 04 Bratislava Tel. +380 44 590-1210 Slovak Republic [email protected]

Matej Letko Tel. +421 2 4950 3701 Websites [email protected] gss.unicreditgroup.eu Zuzana Milanova http://www.unicreditgroup.eu Tel. +421 2 4950 3702 http://www.bankaustria.at [email protected]

Slovenia UniCredit Bank Slovenija d.d. Wolfova 1 SI-1000 Ljubljana Slovenia

Vanda Mocnik-Kohek Head of GSS Slovenia Tel. +386 1 5876 450 [email protected]

Elmedina Garibovi ´c Tel. +386 1 5876 453 [email protected]

Barbara Zajc Tel. +386 1 5876 453 [email protected]

Issue 113, September 2010 32

Disclaimer

The information in this publication is based on carefully selected sources Notwithstanding the above, if this publication relates to securities subject to believed to be reliable but we do not make any representation as to its the Prospectus Directive (2005) it is sent to you on the basis that you are a accuracy or completeness. Any opinions herein reflect our judgement at Qualified Investor for the purposes of the directive or any relevant implementing the date hereof and are subject to change without notice. Any investments legislation of a European Economic Area (“EEA”) Member State which has presented in this report may be unsuitable for the investor depending on implemented the Prospectus Directive and it must not be given to any person his or her specific investment objectives and financial position. Any reports who is not a Qualified Investor. By being in receipt of this publication you under- provided herein are provided for general information purposes only and take that you will only offer or sell the securities described in this publication cannot substitute the obtaining of independent financial advice. Private inves- in circumstances which do not require the production of a prospectus under tors should obtain the advice of their banker/broker about any investments Article 3 of the Prospectus Directive or any relevant implementing legislation concerned prior to making them. Nothing in this publication is intended to of an EEA Member State which has implemented the Prospectus Directive. create contractual obligations on any of the entities composing Corporate & Investment Banking Division of UniCredit Group which is composed of (the Note to US Residents: respective divisions of) UniCredit Bank AG, Munich, UniCredit Bank Austria AG, Vienna, and UniCredit S.p.A., Rome. The information provided herein or contained in any report provided herein is intended solely for institutional clients of Corporate & Investment Banking UniCredit Bank AG is regulated by the German Financial Supervisory Author- Division of UniCredit Group acting through UniCredit Bank AG, New York ity (BaFin), UniCredit Bank Austria AG is regulated by the Austrian Financial Branch and UniCredit Capital Markets, Inc. (together “UniCredit”) in the Market Authority (FMA), the UniCredit CAIB Securtities UK Ltd. is regulated United States, and may not be used or relied upon by any other person for by the Financial Services Authority (FSA) and UniCredit S.p.A. is regulated any purpose. It does not constitute a solicitation to buy or an offer to sell by both the Banca d’Italia and the Commissione Nazionale per le Società e any securities under the Securities Act of 1933, as amended, or under any la Borsa (Consob). other US federal or state securities laws, rules or regulations. Investments in securities discussed herein may be unsuitable for investors, depending Note to UK Residents: on their specific investment objectives, risk tolerance and financial position.

In the United Kingdom, this publication is being communicated on a confi- In jurisdictions where UniCredit is not registered or licensed to trade in securi- dential basis only to clients of Corporate & Investment Banking Division of ties, commodities or other financial products, any transaction may be effected UniCredit Group (acting through UniCredit Bank AG, London Branch (“UCB only in accordance with applicable laws and legislation, which may vary from London”) and/or UniCredit CAIB Securities UK Ltd. who (i) have professional jurisdiction to jurisdiction and may require that a transaction be made in accord- experience in matters relating to investments being investment professionals ance with applicable exemptions from registration or licensing requirements. as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“FPO”); and/or (ii) are falling within Article All information contained herein is based on carefully selected sources believed 49(2) (a) – (d) (“high net worth companies, unincorporated associations etc.”) to be reliable, but UniCredit makes no representations as to its accuracy or of the FPO (or, to the extent that this publication relates to an unregulated completeness. Any opinions contained herein reflect UniCerdit’s judgement collective scheme, to professional investors as defined in Article 14(5) of the as of the original date of publication, without regard to the date on which Financial Services and Markets Act 2000 (Promotion of Collective Investment you may receive such information, and are subject to change without notice. Schemes) (Exemptions) Order 2001 and/or (iii) to whom it may be lawful to communicate it, other than private investors (all such persons being referred to UniCredit may have issued other reports that are inconsistent with, and reach as “Relevant Persons”). This publication is only directed at Relevant Persons different conclusions from, the information presented in any report provided and any investment or investment activity to which this publication relates is herein. Those reports reflect the different assumptions, views and analytical only available to Relevant Persons or will be engaged in only with Relevant methods of the analysts who prepared them. Past performance should not be Persons. Solicitations resulting from this publication will only be responded taken as an indication or guarantee of further performance, and no representa- to if the person concerned is a Relevant Person. Other persons should not tion or warranty, express or implied, is made regarding future performance. rely or act upon this publication or any of its contents. UniCredit and/or any other entity of Corporate & Investment Banking Division The information provided herein (including any report set out herein) does not of UniCredit Group may from time to time, with respect to any securities dis- constitute a solicitation to buy or an offer to sell any securities. The information cussed herein: (i) take a long or short position and buy or sell such securities; in this publication is based on carefully selected sources believed to be reliable (ii) act as investment and/or commercial bankers for issuers of such securities; but we do not make any representation as to its accuracy or completeness. (iii) be represented on the board of such issuers; (iv) engage in “market making” Any opinions herein reflect our judgement at the date hereof and are subject of such securities; and (v) act as a paid consultant or adviser to any issuer. to change without notice. The information contained in any report provided herein may include forward- We and/or any other entity of the Corporate & Investment Banking Division of looking statements within the meaning of US federal securities laws that are UniCredit Group may from time to time with respect to securities mentioned in subject to risks and uncertainties. Factors that could cause a company’s this publication (i) take a long or short position and buy or sell such securities; actual results and financial condition to differ from its expectations include, (ii) act as investment bankers and/or commercial bankers for issuers of such without limitation: Political uncertainty, changes in economic conditions that securities; (iii) be represented on the board of any issuers of such securi- adversely affect the level of demand for the company’s products or services, ties; (iv) engage in “market making” of such securities; (v) have a consulting changes in foreign exchange markets, changes in international and domestic relationship with any issuer. Any investments discussed or recommended financial markets, competitive environments and other factors relating to the in any report provided herein may be unsuitable for investors depending on foregoing. All forward-looking statements contained in this report are qualified their specific investment objectives and financial position. Any information in their entirety by this cautionary statement. provided herein is provided for general information purposes only and cannot substitute the obtaining of independent financial advice. Corporate & Investment Banking Division of UniCredit Group

UCB London is regulated, to a limited extent, by the Financial Services Author- UniCredit Bank AG, Munich; UniCredit Bank Austria AG, Vienna and UniCredit ity for the conduct of business in the UK as well as by BaFIN, Germany. S.p.A., Rome UniCredit CAIB Securities UK Ltd., London, a subsidiary of UniCredit Bank Austria AG, is authorised and regulated by the Financial Services Authority. as of 29 March 2010

Issue 113, September 2010 33

Imprint

Statement pursuant to the Austrian Media Act Publisher and Media Owner Corporate & Investment Banking Global Transaction Banking UniCredit Bank Austria AG Global Securities Services Julius Tandler-Platz 3 A-1090 Vienna Tel. +43 50505 0

Information requirements pursuant to the Austrian E-Commerce Act Registered office and postal address Schottengasse 6 – 8 A-1010 Vienna Swift: BKAUATWW Austrian bank code: 12.000 Registered under no. FN 150714p Companies Register at the Commercial Court Vienna Kind of business Credit institution under section 1 (1) Austrian Banking Act Supervisory authority Austrian Financial Market Supervisory Authority (Finanzmarktaufsicht), departments banking supervision and securities supervision Praterstraße 23 A-1020 Vienna http://www.fma.gv.at Membership Austrian Federal Economic Chamber, bank and insurance division Wiedner Hauptstraße 63 A-1040 Vienna http://www.wko.at Austrian Bankers‘ Association A-1013 Vienna, p.o.box 132 http://www.voebb.at; Applicable legal regulations Applicable legal regulations are in particular the Austrian Banking Act (“Bankwesengesetz – BWG”, Federal Law Gazette/BGBl. No. 532/1993, with some amendments), the Austrian Securities Supervision Act (“Wertpapieraufsichtsgesetz – WAG”, Federal Law Gazette/BGBl. No. 753/1996, with some amendments) an the Austrian Savings Banks Act (“Sparkassengesetz”, Federal Law Gazette/BGBl. No. 64/1979, with some amendments). VAT identification number ATU 51507409

Issue 113, September 2010

GSS NEWSLETTER ISSUE 113 September 2010 ﻿ 2

GSS NEWSLETTER ISSUE 113 September 2010 2