GSS NEWSLETTER ISSUE 144 April 2013 2

Contents Editorial 4 HR NEWS 5 John’s Corner 6 Austria 8

Amending DTT protocol between Austria and Cyprus 8 Belarus 9

Depository service of state-owned enterprises to be monopolised 9 Bosnia and Herzegovina 10

EBRD delegation visiting the Central Bank 10 Bulgaria 12

Fitch and S&P see fiscal stability continuing despite political tensions 12 Croatia 13

Croatian and Slovenian PMs sign memorandum of understanding 13 Croatia has met EU membership requirements 14 Czech Republic 15

Ministry of Finance expects public finance deficit below 3% for this year 15 Prague Stock Exchange recalculates PX indices 15 Hungary 17

Hungary offers settlement government bonds for non-EU members 17 Kazakhstan 19

Volume of KASE trading decreased by 5.5% in January and February 19 Kyrgyzstan 20

Business activity in Kyrgyzstan’s market 20

Issue 144, April 2013 3 Contents

Poland 21

Warsaw Stock Exchange consults market participants about trading hours 21 Romania 22

NBR keeps monetary policy rate unchanged 22 Romanian Senate decides to establish FSA 22 Russia 23

MinFin to amend non-government pension funds legislation 23 MinFin prepared draft legislation amendments on creation of Mega-regulator 24 Ministry of Economic Development updated privatisation plan 24 Serbia 25

Serbia does not need money from IMF for budget or foreign currency reserves 25 Slovak Republic 26

Bratislava Stock Exchange trading results in February 2013 26 Annual Report of the Debt and Liquidity Management Agency for 2012 27 Slovenia 28

Slovenia passes labour market reform 28 New government in Slovenia 29 Ukraine 30

Perspectiva Stock Exchange to launch T-bills trades against securities pledging 30 Azerbaijan 31

Recent securities market legislation update in Azerbaijan 31 Your Contacts 32 Disclaimer 35 Imprint 36

Issue 144, April 2013 4

Editorial

The accepted measures provide a solid ground for bank restructuring, structural reform, economic growth and market access. The new government is currently reviewing them and we all hope that their implementation will continue. Further privatisation is the most critical issue which lies ahead of Slovenia. Years of discussion over “national interest” shall be a matter of the past, as we rather want to push our economy and development forward.

The most important progress on the market in 2012 was the introduction of the Matching and Settlement Standards Market Practice in Slovenia and the implementation of the SWIFT link between KDD and its members for settlement of OTC trades in November. I am proud about our role in this project. My colleague Jana Badovinac Žunek, Head of GSS Operations in Slovenia, was one of the most active members Vanda Mocˇ nik-Kohek of the working group that prepared the Standards. Head of GSS Slovenia The Bank of Slovenia and the Central Securities Clearing Corporation signed the T2S Framework Agreement on June 26, 2012. KDD is one of 24 CSDs which joined T2S. It is predicted that KDD will join T2S in the last wave in February Dear Clients, Partners and Friends, 2017.

It is a pleasure to address to you this month’s issue of In autumn 2012 KYC requirements were changed as the List the GSS editorial – right after the Easter Holiday Season. of Countries by Geographical Risk Area and group guidelines Last year brought remarkable developments with numer- were amended by the Office for Money Laundering Preven- ous issues moving forward. Within one year the govern- tion. A number of countries which were entitled to a simplified ment changed twice, the SWIFT link between CSD and its account opening procedure were classified for a standard members was implemented, the T2S framework agree- or an enhanced procedure; the period for regular review of ment was signed and several measures to ensure the documentation was shortened and is now required also for sustainability of the state budget and to make the Slove- accounts with no activity. The result of the changes is the nian economy more competitive were presented by the review of documentation for almost all segregated accounts, ex-government. which has caused a lot of work for our clients. We are now collecting information on KYC requirements for segregated An austerity package and revised budget were accepted in accounts opened at CSD level in other EU countries to be May 2012 to reduce the budget deficit by EUR 800 million. able to lobby at the regulator. The tax rate on profit was reduced from 20% to 15%. The tax rate on interest, dividends and capital gains for individuals I would like to take this opportunity to thank all our clients was increased from 20% to 25%. The Act on Measures to for the favourable rates in the 2012 Global Custodian Agent Strengthen Stability in Banking established the “bad bank” Banks in Emerging Markets Survey. For the first time since BAMC - Bank Assets Management Company. The Act on the securities services have been offered to foreign clients in Slovenian State Holding has established a company that will Slovenia we were “top” rated. This achievement is the result be managing all state-owned assets, which are now owned of the dedicated work of my young team of eight skilled by several legal entities with different business goals. professionals.

After years of discussion the Slovenian assembly has passed We all undertake to continue to improve the services we a pension system reform and a reform of the labour market. offer so that we stay the first and best provider in Slovenia. The first one tightens retirement conditions by raising the retirement age to 65 years or 40 years of pensionable service, Best regards, while the latter includes measures to increase the flexibility of the labour market by loosening employment and dismissal Vanda Mocˇ nik Kohek procedures and introducing measures to restrict fixed-term Head of GSS Slovenia employments.

Issue 144, April 2013 5

HR NEWS

It is our pleasure to announce the appointment of Jelena Bilušic´ to the position of Head of Relationship Management within GSS Croatia. Jelena replaces Snježana Bruncˇ ic´ who decided to pursue other business opportunities outside the banking industry.

Jelena has 10 years of experience on the capital market out of which 8 years were in the GSS area. She joined the Zagrebacˇ ka banka GSS team in October 2006 coming from the Privredna banka Zagreb GSS team. At Zagrebacˇ ka banka Jelena was primarily responsible for NAV calculation and domestic client services.

She gained significant experience in the securities services operational area and a year and a half ago was recognised as having great potential for the relationship area when she was transferred to the relationship management team. During this time she had the chance to gain experience in handling Jelena Bilušic´ international clients and client management in general. Head of Relationship Management

We wish Jelena her every success in her new role.

Valerija Bezak Head of GSS Croatia

Enis Zejnic´ is joining the UniCredit Global Securities Services team in Bosnia and Herzegovina as a Relationship manager, having previously worked as Relationship Manager within the Entrepreneurial Banking Segment of the UniCredit Bank Retail Banking division since 2007.

Prior to working with UniCredit Bank, Enis had gained local sales experience working in the private sector as a manager of a local business.

Enis graduated in 2004 from the University of Bihac´ – School of Economics and holds a Bachelors’ degree in Finance and Accounting. He is fluent in English and has basic knowledge of German.

In his new role as a GSS Relationship manager, Enis will Enis Zejnic´ service clients active in both markets, the Federation of BH Relationship Manager and Republic of Srpska. We wish Enis all success in his new position in UniCredit GSS Bosnia and Herzegovina.

Lejla Sabljica Head of GSS Bosnia and Herzegovina

Issue 144, April 2013 6

John’s Corner

A recent trip to our London clients focused on T2S strategies and the actions being taken by UniCredit and also the markets within its coverage model. But clients were eager, at the same time, to discuss the CSD operator model, mentioned in previous newsletters. The concept creates no issue for UniCredit and we operate a similar model for ICSDs in certain locations. On the clearing side, acting as an operator for a remote broker clearer is also a common option.

Operating as a remote member of a CSD does, though, pose a series of challenges, both for the CSD and the potential remote member. It is worth considering them all. But first of all we should recognise the drivers for the model. AIFMD and UCITS V will all change the liability structure of the EU market. Essentially, the global custodian will become liable for all losses incurred at a sub-custodian. And a sub-cus- John Gubert on the todian includes any prime broker used by a hedge fund. To CSD operator model make matters worse, it appears that, irrespective of whether the hedge fund negotiated an agreement, such as allowing excess collateral to be held and re-hypothecated by the prime broker, the depository would be deemed to have condoned it, and protected the fund from loss, whether their approval But the process is far from simple. On the cost side, was by positive agreement or even inaction. the CSD participant is stand-alone and incurs fees on the basis of their portfolio in each market. They lose any scale It is clear that AIFMD and UCITS V will further increase the benefits that come from the sub-custodian’s total portfolio tensions that already exist between the administrator and and, in markets permitting omnibus accounts, any benefits depository on the one hand and prime brokers on the other. from internalisation. And it has to be remembered that total AIFMD compels funds to appoint a depository and few will elimination of all sub-custodian risk will only arise where the agree to the traditionally quite remote arrangements that operator model is used in all markets. The total resolution still exist between many depositories and prime brokers. of the sub-custody liability challenge would be hugely costly That model is bound to change and the bank-based prime from an administrative perspective; thus the likelihood is that service or prime broker providers would appear to have a most interested parties will look at this option only where serious competitive advantage in the new world. One should they have extreme scale or a challenging local credit or legal also note, in this context, that prime brokers themselves are environment. reviewing the operator model and the option of their funds being the direct member of the relevant CSDs. The participant has to sign all agreements required with each local CSD and will be bound by local law, may have to accept The operator model will thus entail the global custodian or documentation in the local language and will have to submit the prime broker, or one or more of their clients, becoming returns as required by the local CSD. Obviously the operator a direct participant in a CSD and then, through a power of would assist in such submissions and could advise the par- attorney or similar instrument, appointing a local bank as ticipant of any issues. It should, though, be noted that some their operator. As the operator is not in the ownership chain CSDs may require local incorporation for a direct participant which flows from the CSD to the CSD participant and then to reduce the risk of contagion from a foreign court. Extra- on, as appropriate, to the beneficial owner of the relevant territoriality is becoming a growing danger! CSDs may also securities, sub-custodian risk is eliminated. have unique requirements to ensure they, and their participants, meet AML and other regulatory or legal obligations. It cannot be assumed that the current sub-custodian environment merely duplicates their needs in this area. And, finally, care has to be taken to ensure that there are no meaningful obligations that cannot be outsourced and that there are no notices that cannot be lodged with a third party. In other words, the operator may not legally be able to intermediate all flows and actions of a CSD, especially where there is a call for funds in the case of financial problems at a CSD.

Issue 144, April 2013 7 John’s Corner

And, if the participant operates a cash account at a local Unfortunately, that is not the world we live in. The risk concept bank, they still incur correspondent banking risk. In T2S, the of the operator model is sound. UniCredit can intermediate asset servicing model would allow flexibility to manage the as operator for the direct participant. But there are a series risk for those markets that operate in the Euro. But that would of financial, regulatory, fiscal and operational challenges that only cover Austria, Slovakia and Slovenia in our region. And need to be overcome. And, bizarrely, the drive for the initiative the direct participant, operating their own cash accounts, is an attempt by European regulators to protect investors. would need to ensure that they have facilities that allow them The unintended consequences may mean that those inves- to put up any required liquidity during the settlement process tors incur greater costs and more unexpected risks! to ensure efficient settlement.

Few markets currently run operator structures, although none appear to explicitly forbid them. Certain could well have capacity issues if such participation were at fund level. And some markets do insist that their participants have a local licence; thus eliminating the option for funds and many global John Gubert custodians to be direct participants. Although, in theory, Chairman passports should help within the EU, it is not a given that the Global Securities Services local CSDs will accept a bank or other entity as a participant, Executive Committee if it is not incorporated in their own jurisdiction. And there is a question as to the status of a participant within each local regulatory structure. If CSD direct participation is deemed to be an investment business, it is probable that returns would John Gubert also appears on blog.globalcustodian.com need to be made to the local regulators, and these may be at Group level rather than just at local entity. Care must also be taken to ensure that any new structure adopted does not result in tax liability; with the risk of this increasing if there is a requirement for the participant to be locally incorporated.

In the ideal world, the remote participant would sign a basic CSD agreement, with the operator advising them of any change in their liability and also monitoring the account to ensure they met all regulatory and other demands. Ideally membership could be remote from the home location of the fund or the global custodian. Remote membership would have no regulatory or fiscal ramifications and operators would be allowed to consolidate the accounts for which they are the operator in their family pricing at the relevant CSD.

Issue 144, April 2013 8

Austria

Amending DTT protocol between Austria and Cyprus Market Capitalisation EUR 80.7bn An amending protocol to the Double Taxation Treaty (DTT) YTD Dev. of Market Capitalisation 1.1% between Cyprus and Austria was signed on May 21, 2012 and entered into force on April 1, 2013. Number of SE Transactions p.m. n.a. YTD Dev. of SE Transactions n.a. The protocol amends the article on the Exchange of Infor- SE Turnover (Vienna SE) EUR 1.7bn mation. The relevant article now follows the OECD model. Monthly Index Performance (ATX/VSE) 0.8% The protocol will come into effect as of January 1, 2014. GDP per Capita (2013 in EUR) 37,482 GDP Real 2013 (Change against prev. year in %) 0.9 Impact on investors 3-Month Money Market Rate (current in %) 0.17 For information purposes only. Inflation in 2013 (HVPI yearly average in %) 2.2 Upcoming Holidays Austria 1 April

Source: UniCredit, National Statistics

ATX

Actual 38 Day moving average 200 Day moving average 2600 2500 2400 2300 2200 2100 2000 1900 1800 1700 Jul Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May

Source: Thomson Datastream

Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2013e in EUR) 37,482 GDP Real 2013e (Change against prev. year in %) 0.9 3-Month Money Market Rate (current in %) 0.17 Inflation in 2013e (yearly average in %) 2.2 .../EUR - Upcoming Holidays none

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

Issue 144, April 2013

3/25/2013 11:25 AM 9

Belarus

Depository service of state-owned enterprises to be Market Capitalisation BYR 13.6tr monopolised YTD Dev. of Market Capitalisation n.a. The President of Belarus Alexander Lukashenko has ordered to transfer state-owned shares to the state’s Republican Number of SE Transactions p.m. (BCSE) 941 Central Securities Depository (RCSD). YTD Dev. of SE Transactions 27.5% SE Turnover (BCSE) BYR 1.791,9bn In accordance with the President’s decree #108 dated Monthly Index Performance (BCSE) 0.7% March 4, 2013, which was published on the site of the National Legal Information Centre, state agencies supervis- GDP per Capita (2013 in EUR) 256 ing the activity of state-owned enterprises should transfer GDP Real 2013 (Change against prev. year in %) 4.40 state-owned shares to securities accounts with the RCSD 3-Month Money Market Rate (current in %) n.a. within three months. Hereafter, market participants are enti- Inflation in 2013 (yearly average in %) 1.2 tled to disclose information about their clients via RCSD only. BYR/EUR 0.00009 Currently, Belarus has a two-level depository system, namely Upcoming Holidays 8 March the central depository (RCSD) and 35 depositories with

Source: UniCredit, National Statistics established correspondent relationships with the RCSD, 17 of them are banks.

Market experts commented that this order is not the only monopolisation issue on the financial market – thus, state- owned companies are entitled to open cash accounts with a limited number of state-owned banks.

Impact on investors The increase of the state’s influence on the securities market of Belarus could lead to the suppression of transparency and market competition.

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

Issue 144, April 2013 10

Bosnia and Herzegovina

EBRD delegation visiting the Central Bank Market Capitalisation (Sarajevo SE) BAM 4.7bn A delegation of the European Bank for Reconstruction and YTD Dev. of Market Capitalisation 3.6% Development visited the Central Bank of Bosnia and Her- zegovina (CBBH), where they met with the Governor Kemal Number of SE Transactions p.m. 902 Kozaric´ , Ph.D. and the representatives of the Banking Agen- YTD Dev. of SE Transactions -1.3% cies and the BH Deposit Insurance Agency. SE Turnover (SASE) BAM 7.4mn Monthly Index Performance (SASX-10/SASE) 1.2% The visit of the EBRD representatives was organised as part of the regular annual consultations with the representatives Market Capitalisation (Banja Luka SE) BAM 4.1bn of governments and business sector of the countries in YTD Dev. of Market Capitalisation 6.6% which the EBRD invests. On these occasions they want to Number of SE Transactions p.m. 3,360 stay informed on the modus operandi of their representative YTD Dev. of SE Transactions 51.3% offices in BH, on possibilities for improvement of the coopera- SE Turnover (BLSE) BAM 16.9mn tion and on the increase of the investment level. They were Monthly Index Performance (BIRS/BLSE) 1.6% interested in the banking sector situation and the way of functioning of the deposit insurance scheme in BH. GDP per Capita (2013 in EUR) 3,884 GDP Real 2013 (Change against prev. year in %) 3.3 Governor Kozaric´ pointed out that the EBRD is an impor- 3-Month Money Market Rate (current in %) n.a. tant institutional investor for BH, and that it is especially signifi- Inflation in 2013 (yearly average in %) 2.6 cant, considering that the country has no access to European funds as EU candidate countries do, and also because during EUR/BAM 1.97 the global financial crisis the EBRD continued to support Bosnia_Herzegovina Upcoming Holidays none projects in infrastructure as well as the financial and private sectors. Until the end of 2011 the EBRD approved in total Source: UniCredit, National Statistics approximately EUR 1.4 billion and last year an additional BIFX EUR 125 million was approved for infrastructure projects, the electrical power sector and the private sector. The Gov- Actual 40 Day moving average 200 Day moving average ernor pointed out that BH has huge potential which should 600 580 be a motivating factor for potential investors. Moreover, it is 560 to expect that the accession of Croatia to the EU becomes 540 an additional stimulus to the authorities in BH to make more 520 efforts in pushing growth. 500 480 460 440 420 400 Jul Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May

Source: Bloomberg

Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2013e in EUR) 3,884 GDP Real 2013e (Change against prev. year in %) 3.3 3-Month Money Market Rate (current in %) - Inflation in 2013e (yearly average in %) 2.6 BAM/EUR 1.97 IssueUpcoming 144, Holidays April 2013 none

3/25/2013 11:25 AM 11 Bosnia and Herzegovina

During the conversation it was stated that there is mutual consent on the need to further invest in BH, while the EBRD representatives were especially interested in the possibility to increase the crediting of the real sector. They pointed out that the biggest part of the institution’s credit portfolio for industrial production foreseen for the Western Balkans is intended for BH, and it is expected that the future strategy will remain equally focused on the private sector.

The Directors of the Banking Agencies informed the guests on the indicators and the situation in the banking sector and pointed out that decreased credit activity is not caused by restrictive regulations but by a more prudent risk assessment of commercial banks. Also, the Director of the BH Deposit Insurance Agency informed the EBRD representatives about the deposit insurance scheme and the percentages of coverage.

Impact on investors For information purposes only.

Written and edited by: Amra Telac´ evic´ Relationship Manager Global Securities Services, Bosnia and Herzegovina Tel: +387 33 491 816 ·[email protected]

Issue 144, April 2013 12

Bulgaria

Fitch and S&P see fiscal stability continuing despite Market Capitalisation BGN 10.1bn political tensions YTD Dev. of Market Capitalisation -2.4% The international rating agencies Fitch Ratings and Standard&Poor’s Rating Services have commented on Bul- Number of SE Transactions p.m. 20,780 garia’s stable fiscal policy continuity after political develop- YTD Dev. of SE Transactions -14.8% ments at the end of February and beginning of March, which SE Turnover (Bulgarian Stock Exchange) BGN 200.8mn led to the previous government’s resignation and the appoint- Monthly Index Performance (SOFIX) -3.8% ment of a caretaker government. GDP per Capita (2013 in EUR) 6,022 Despite increased political uncertainty, Fitch has emphasised GDP Real 2013 (Change against prev. year in %) 3.8 Bulgaria’s broad political commitment to fiscal prudence in 3-Month Money Market Rate (current in %) 1.87 recent years and cited the country’s President stating that Inflation in 2013 (yearly average in %) 3.2 Bulgaria remains committed to fiscal discipline and that fiscal EUR/BGN 1.96 targets for 2013 will be adhered to. The agency further stated Upcoming Holidays Bulgaria none that “early elections being called need not threaten the sovereign’s public finances, which are likely to remain a ratings strength.” Source: UniCredit, National Statistics

SOFIX At the same time, S&P has commented that the stable out-

Actual 38 Day moving average 200 Day moving average look on the sovereign credit rating of Bulgaria reflects the 430 rating agency’s view that, despite the recent political development, a new government is likely to continue policies focused 400 on steady economic growth consistent with the country’s 370 currency board.

340 Impact on investors 310 Bulgaria’s prudent fiscal policy will continue despite recent 280 unfavourable political developments according to both Fitch and S&P. 250 Jul Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May

Source: Thomson Datastream

Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2013e in EUR) 6,022 GDP Real 2013e (Change against prev. year in %) 3.8 3-Month Money Market Rate (current in %) 1.87 Inflation in 2013e (yearly average in %) 3.2 EUR/BGN 1.96 Upcoming Holidays none

Written and edited by: Borislav Hitov Relationship Manager Global Securities Services, Bulgaria Tel. +359 2 923 2670 · [email protected]

Issue 144, April 2013

3/25/2013 11:25 AM 13

Croatia

Croatian and Slovenian PMs sign memorandum of Market Capitalisation HRK 203.6bn understanding YTD Dev. of Market Capitalisation 6.3% The prime ministers of Croatia and Slovenia, Zoran Milanovic and Janez Jansa, signed a Memorandum of Understanding Number of SE Transactions p.m. 28,527 between the two governments to resolve the Ljubljanska YTD Dev. of SE Transactions 74.1% Banka issue within negotiations on the succession to former SE Turnover (Zagreb SE) HRK 426.5mn Yugoslavia, while the Slovenian parliament would immediately Monthly Index Performance (Crobex/ZSE) 3.0% initiate ratification of Croatia’s European Union accession GDP per Capita (2013 in EUR) 11,954 treaty.

GDP Real 2013 (Change against prev. year in %) 2.5 After an hour of talks, the two prime ministers signed the 3-Month Money Market Rate (current in %) 0.75 document that says that efforts will be made to find as soon Inflation in 2013 (yearly average in %) 2.8 as possible a comprehensive solution to the issue of Yugo- EUR/HRK 7.59 slav-era foreign-currency deposits of Croatian clients with the Zagreb office of the now defunct Slovenian bank. Active Upcoming Holidays Croatia 1 April negotiations to that effect will continue at the Bank for Interna- tional Settlements in Basel in line with the succession treaty. Source: UniCredit, National Statistics

CROBEX Under the memorandum, the Croatian government will ensure that the lawsuits filed by Croatian banks are put on hold and Actual 38 Day moving average 200 Day moving average 2100 no new legal or other proceedings are taken with regarding the issue of transferred foreign-currency savings deposits, 2000 while Slovenia initiates a procedure in its parliament to ratify 1900 Croatia’s EU accession treaty.

1800 Impact on investors 1700 The Memorandum of Understanding between the two

1600 governments resolves the Ljubljanska Banka issue, while the Slovenian parliament would immediately initiate the rati- 1500 fication of Croatia’s European Union accession treaty. Jul Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May

Source: Thomson Datastream

Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2013e in EUR) 11,954 GDP Real 2013e (Change against prev. year in %) 2.5 3-Month Money Market Rate (current in %) 0.75 Inflation in 2013e (yearly average in %) 2.8 EUR/HRK 7.59 Upcoming Holidays none

Issue 144, April 2013

3/25/2013 11:25 AM 14 Croatia

Croatia has met EU membership requirements The European Parliament’s Rapporteur on Croatia, Libor Roucek, said that Croatia is well prepared for being a member of the European Union and that his final report on Croatia’s preparedness will be positive, adding that the country will enter the EU on July 1, 2013 as scheduled.

Roucek said that since the previous progress report, released in October 2012, Croatia had worked hard to fulfil the ten remaining requirements for membership. Partial exceptions from that are the privatisation of the shipyards and the con- struction of physical infrastructure in the corridor between Croatia and Bosnia and Herzegovina along the Adriatic Sea.

According to Roucek, the Croatian government should not expect any complications with the ratification of Croatia’s EU accession treaty in the EU member states which have not yet ratified it nor is there to be expected a delay of its scheduled accession on July 1, 2013.

Even though he thinks that the rule of law and combating corruption should be given greater attention in future enlarge- ment rounds than has been the case so far, Roucek believes that additional monitoring of Croatia after its accession is unnecessary because the country has been subjected to stricter criteria during the accession process than previous membership candidates.

Impact on investors Croatia is well prepared for EU membership, additional monitoring is unnecessary.

Written and edited by: Jelena Bilušic´ Head of Relationship Management Global Securities Services, Croatia Tel. +385 1 6305 137 · [email protected]

Issue 144, April 2013 15

Czech Republic

Ministry of Finance expects public finance deficit Market Capitalisation CZK 1.1trn below 3% for this year YTD Dev. of Market Capitalisation -1.0% The Ministry of Finance (MF) expects to keep the public finance deficit below the planned three percent of Gross Number of SE Transactions p.m. n.a. Domestic Product (GDP) this year if economic conditions in YTD Dev. of SE Transactions n.a. Europe do not worsen dramatically. SE Turnover (Prague SE) CZK 68.4bn Monthly Index Performance (PX) -0.7% Although the European Commission (EC) expects the Czech public finance deficit to reach 3.1% of GDP mainly due to GDP per Capita (2013 in EUR) 16,406 the church property restitution, the Ministry of Finance insists GDP Real 2013 (Change against prev. year in %) 3.5 on a deficit below 3%. The MF would change its estimation 3-Month Money Market Rate (current in %) 0.18 only if the situation in Europe should worsen considerably. Inflation in 2013 (yearly average in %) 2.5 EUR/CZK 25.76 The EC opened the excessive deficit procedure for the Czech Republic in 2009 when the country’s budget deficit Upcoming Holidays Czech 1 April was almost double the permitted limit. The European Union demands the Czech government to cut its deficit below 3% Source: UniCredit, National Statistics of GDP by 2013. PX-50

Actual 38 Day moving average 200 Day moving average Impact on investors 1125 Securing the public finance deficit under the 3% limit this year should prolong the macroeconomic stability in the 1050 Czech Republic.

975 Prague Stock Exchange recalculates PX indices In compliance with the Principles of updating, the PX Index 900 base had to be updated. The new base was set to be valid from March 18 and onwards. The requirements regarding the 825 PX Index base were met by 14 issues, so the updated PX

Jul index base contains 14 base issues. The number of securi- Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May ties applied in the index calculation was reduced in the case Source: Thomson Datastream of the issue of CEZ and ERSTE GROUP BANK because of an overrun of the maximum limit of shares in the market capitalisation.

Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2013e in EUR) 16,406 GDP Real 2013e (Change against prev. year in %) 3.5 3-Month Money Market Rate (current in %) 0.18 Inflation in 2013e (yearly average in %) 2.5 EUR/CZK 25.76 Upcoming Holidays none

Issue 144, April 2013

3/25/2013 11:25 AM 16 Czech Republic

The same necessity of recalculation concerned the PX-GLOB Index Base, where the new recalculated index will be effective also from March 18 and onwards. The number of CEZ and ERSTE GROUP BANK securities applied in the index calculation was reduced as well.

The effective date for both indices was February 28.

Consequently, the adjustment factor K(t) in the calculation formula applied to the PX Index was changed to 1.097017944417610 and the adjustment factor K(t) in the calculation formula applied to the PX-GLOB Index was changed to 0.586874652488652 as of March 18.

Impact on investors The recalculations of the index bases and the adjustment factor reflect the market significance of each security so that it would provide more relevant and accurate information for investors’ decisions.

Written and edited by: Zbynek Oborny Relationship Manager Global Securities Services, Czech Republic Tel. +420 955 960 779 · [email protected]

Issue 144, April 2013 17

Hungary

Hungary offers settlement government bonds for Market Capitalisation HUF 17,089bn non-EU members YTD Dev. of Market Capitalisation 1.8% Hungarian lawmakers approved to offer residency for non-EU citizens investing at least EUR 250,000 in Hungarian govern- Number of SE Transactions p.m. 152,480 ment bonds. This bill approved at the end of last year sought YTD Dev. of SE Transactions 44.6% to modify the law on the entry and stay of third-country citi- SE Turnover (Budapest SE) HUF 385,500mn zens to create a legal framework for investor residency. Monthly Index Performance (BUX) -2.9% The rules adopted last December stipulate that when foreign GDP per Capita (2013 in EUR) 12,381 investors – private individuals or legal entities owned by for- GDP Real 2013 (Change against prev. year in %) 4.8 eigners – purchase at least EUR 250,000 worth of special 3-Month Money Market Rate (current in %) 4.44 government securities and hold it for 5 years, this would be Inflation in 2013 (yearly average in %) 3.3 taken into consideration with an exceptional weight in the EUR/HUF 305.49 examination of their settlement permit applications. First, the Upcoming Holidays Hungary 1 April investor could get a residence permit, which may be given for no more than five years and can be renewed; and no sooner Source: UniCredit, National Statistics than six months after that a settlement permit may be applied for giving the person the right to an unlimited stay in Hungary. BUX

Actual 38 Day moving average 200 Day moving average The main attractiveness of the settlement permit is that the 20000 owner is able to stay in Hungary without a time limit and can 19500 carry on business activities in the country. Additionally, it 19000 opens the road towards the Schengen area, as the Hungarian 18500 residence permit makes it possible for these citizens to stay 18000 for no more than three months in a half-year period in any 17500 other Schengen territory. Furthermore, a settlement permit 17000 16500 grants access to public health care and education as well as 16000 employment and welfare benefits in Hungary. 15500 15000 The government expects that this year approximately 4,000

Jul foreigners would buy the special settlement bonds that would Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May create a substantial EUR 1 billion revenue for the state. Based Source: Thomson Datastream on the law, the state has to pay at least 2% return for these settlement bonds, so calculating by the average 5-6% yields on Hungarian Government bonds, the 3% difference could remain in the pocket of the state.

For comparison purposes this year the total of EUR 5.1 billion worth of foreign exchange debt expires for Hungary, of which the Government Debt Management Agency (GDMA) plans to Market Capitalisation HRK 397.2 bn refinance EUR 4 to 4.5 billion through FX bond issues. Out YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 of this amount over EUR 1 billion worth of Premium Euro YTD Dev. of SE Transactions 7.107 Bonds were sold already to Hungarian households as well SE Turnover (Zagreb SE) HRK 5977.5 mn as institutional investors. On the other hand the funding plan Monthly Index Performance (Crobex/ZSE) 0.017 was well supported by the issue of USD 3.25 billion (EUR GDP per Capita (2013e in EUR) 12,381 GDP Real 2013e (Change against prev. year in %) 4.8 2.6 billion) worth of 5-year and 10-year government bonds 3-Month Money Market Rate (current in %) 4.44 in February in international markets. Inflation in 2013e (yearly average in %) 3.3 EUR/HUF 305.49 Upcoming Holidays none

Issue 144, April 2013

3/25/2013 11:25 AM 18 Hungary

Most of the target investors for the settlement bonds are Once these steps have been completed, GDMA shall enter expected from China, while a significant number of citizens into a contract with at least one investment fund, which will can come from Russia, Vietnam, India and the Middle East. be in the position to purchase the bonds on behalf of the The possibility of this kind of investment, however, may seem persons applying for a settlement permit. Based on the fund to be quite expensive for some people and may finally be manager’s final and irrevocable declaration on the payment, available only for a certain segment. the investor shall declare they would subscribe for at least EUR 250,000 worth of bonds within 45 days of the issuance The bill about the settlement government bond could not date of their residence permit. only result in substantial funds for the GDMA, but also carry criminal, national security and economic risks. A source of The above way of granting settlement permits is not totally danger may be that the origin of funds used by foreign citizens unknown in Europe. Spain, Cyprus and Portugal have recently to invest in securities cannot be traced. These concerns were launched similar initiatives, where residency permits are avail- dispersed, however, by the government underlining that the able for EUR 160,000, 300,000 and 500,000 worth of real existing conditions for obtaining a settlement permit, such estate purchases respectively. Hungary seems to be unique as having no criminal record, will remain intact. however in linking settlement permits to government bond investments instead of real estate related ones. Although the bill allowing for the issue and purchase of settlement government bonds was approved last December Impact on investors and the decree governing the detailed rules about the topic Non-EU private investors or companies managed by has just been recently published, no single purchase has non-EU residents may invest in settlement government been completed and no related permit has been issued yet, bonds for a minimum of EUR 250,000 once all conditions as several criteria have not yet been met. The National Eco- have been established for such transactions. nomic Commission of the Parliament must still approve the companies through which foreigners can realise their investments; moreover, the selected companies have to conclude a contract with the Government Debt Management Agency to purchase the special government bonds.

Written and edited by: Melinda Czéh Relationship Manager Global Securities Services, Hungary Tel. +36 1 301 1920 · [email protected]

Issue 144, April 2013 19

Kazakhstan

Volume of KASE trading decreased by 5.5% in Market Capitalisation KZT 10,790bn January and February YTD Dev. of Market Capitalisation -26.3% The volume of KASE trading decreased by 5.5% in the period January – February 2013 to KZT 3,834.4 billion Number of SE Transactions p.m. 1,421 (USD 25,460.8 million). YTD Dev. of SE Transactions 50.4% SE Turnover (KASE) KZT 4.0bn On March 11, the index of KASE on the results of trades Monthly Index Performance (KASE) 1,036.4 decreased by 0.87% to 1,027.74 points. The volume of transactions achieved with papers included in the KASE index GDP per Capita (2013 in EUR) 9,586 “basket” was 87.4 million KZT. GDP Real 2013 (Change against prev. year in %) 5.6 3-Month Money Market Rate (current in %) 1.25 In February 2013 the volume of trading on Kazakhstan’s Stock Inflation in 2013 (yearly average in %) 7.1 Exchange (KASE) in all market sectors was KZT 1,906.2 bil- EUR/KZT 195.16 lion (equivalent to USD 12,669.7 million), decreasing by 1.1% (by 0.9% expressed in USD) as compared to January 2013. Upcoming Holidays Kazakhstan none The volume of transactions on KASE’s repo market was Source: UniCredit, National Statistics KZT 512.1 billion (equivalent to USD 3,403.8 million) decreas- KASE ing by 36.6% (by 36.4% expressed in USD) compared to January 2013. Actual 40 Day moving average 200 Day moving average 900 In February 2013 the volume of corporate bonds traded

850 on Kazakhstan’s Stock Exchange reached KZT 11.9 billion (equivalent to USD 78.9 million) increasing by 100.7% 800 (101.1% expressed in USD) as compared to January 2013. 750 Over the same period, the value of share trading on the 700 Kazakhstan Stock Exchange reached KZT 3.3 billion (equiv- 650 alent to USD 21.7 million) decreasing by 61.3% (61.3% expressed in USD) compared to January 2013. 600 Jul Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May Impact on investors Source: Bloomberg For information purposes only

Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2013e in EUR) 9,586 GDP Real 2013e (Change against prev. year in %) 5.6 3-Month Money Market Rate (current in %) 1.25 Inflation in 2013e (yearly average in %) 7.1 EUR/KZT 195.16 Upcoming Holidays none

Written and edited by: Zhanat Aktaeva Relationship Manager Global Securities Services, Kazakhstan Tel. +7 727 258 30 15 · [email protected]

Issue 144, April 2013

3/25/2013 11:25 AM 20

Kyrgyzstan

Business activity in Kyrgyzstan’s market Market Capitalisation KGS 8,035.7mn 234 trades were registered on CJSC “Kyrgyz Stock Exchange” YTD Dev. of Market Capitalisation 6.3% in February 2013 with a trade volume of 52.52 million KGS and the number of securities sold was 483,989 units. Number of SE Transactions p.m. 234 YTD Dev. of SE Transactions 66% Trade volume in February 2013 decreased by 79.33% com- SE Turnover (KSE) KGS 52.5mn pared to January 2013. The number of transactions in Febru- Monthly Index Performance (KSE) 230.6 ary 2013 increased by 38.46% compared to January 2013 . GDP per Capita (2013 in EUR) 1,045.81 GDP Real 2013 (Change against prev. year in %) 26.27 Impact on investors For information purposes only. 3-Month Money Market Rate (current in %) n.a. Inflation in 2013 (yearly average in %) 7.50 EUR/KGS 62.20 Upcoming Holidays none

Source: UniCredit, National Statistics

Written and edited by: Zhanat Aktaeva Relationship Manager Global Securities Services, Kazakhstan Tel. +7 727 258 30 15 · [email protected]

Issue 144, April 2013 21

Poland

Warsaw Stock Exchange consults market Market Capitalisation PLN 513.1bn participants about trading hours YTD Dev. of Market Capitalisation -1.9% The Warsaw Stock Exchange has recently come up with an idea to further extend trading hours and to introduce even- Number of SE Transactions p.m. 965,448 ing trading. While the WSE claims it should increase trading YTD Dev. of SE Transactions 2.4% volumes by attracting additional flows generated by foreign SE Turnover (WSE) PLN 13.5bn investors, the brokerage community seems to be not so Monthly Index Performance (WIG20) -1.6% enthusiastic about this proposal. Monthly Index Performance (WIG) -1.2% A similar discussion had taken place in 2010 already when GDP per Capita (2013 in EUR) 11,664 the Warsaw bourse announced it would prolong trading hours GDP Real 2013 (Change against prev. year in %) 4.0 by one hour. Eventually, the decision had been made by the 3-Month Money Market Rate (current in %) 3.21 WSE Council despite lack of support from the local brokers Inflation in 2013 (yearly average in %) 3.2 and the end of trading session was shifted to 5.30pm CET EUR/PLN 4.16 as of January 2011. Upcoming Holidays Poland 1 April This change was one of the main topics that were discussed during a recent meeting of the stock exchange with market Source: UniCredit, National Statistics participants organised with the aim to initiate and facilitate a dia- WIG-20 logue on trading hours. The analytical material presented during the conference confirmed that “although the turnover was 18% Actual 38 Day moving average 200 Day moving average higher than in the years before the extension, quantitative analy- 2700 sis can neither clearly corroborate nor refute the thesis that the 2600 extension of the trading session has had a positive impact on the 2500 value of trading and the extension of the trading session could 2400 but did not have to be an important driver of growth because

2300 other major factors occurred simultaneously such as large IPOs, growing activity of market makers, international promotion of 2200 the market and, first and foremost, macroeconomic factors.” 2100

2000 The conference also presented a preliminary concept of evening

Jul trading organised by the WSE. It has been agreed that ana- Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May lytical work in this area will continue and shall cover among Source: Thomson Datastream others market research, the scope of traded instruments and the organisational formula of trading. Works will be carried on within the working group for the trading session schedule and launch of evening trading consisting of representatives of the stock exchange, National Depository for Securities and brokerage houses. The discussion will be based on additional analyses performed and delivered by an international consultancy, which specialises in capital markets and the final decision on the trad- Market Capitalisation HRK 397.2 bn ing session schedule will be made following the distribution of YTD Dev. of Market Capitalisation 2.307 the complete set of analyses to the stakeholder community. Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Impact on investors Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2013e in EUR) 11,664 The Warsaw Stock Exchange promotes evening trading GDP Real 2013e (Change against prev. year in %) 4.0 claiming it could facilitate further growth of volumes. The 3-Month Money Market Rate (current in %) 3.21 decision will be made following further analysis and consul- Inflation in 2013e (yearly average in %) 3.2 tation with market participants. EUR/PLN 4.16 Upcoming Holidays none Written and edited by: Krzysztof Pekrul Relationship Manager Global Securities Services, Poland Tel. +48 225245864 · [email protected]

Issue 144, April 2013

3/25/2013 11:25 AM 22

Romania

NBR keeps monetary policy rate unchanged Market Capitalisation RON 103bn The Board of the National Bank of Romania decided to keep YTD Dev. of Market Capitalisation 12% the monetary policy rate unchanged at 5.25% per annum. Number of SE Transactions p.m. 67,355 It was also decided to maintain the existing levels of minimum YTD Dev. of SE Transactions -38.0% reserve requirement ratios on both leu and foreign currency- SE Turnover (Bucharest SE) RON 474mn denominated liabilities of credit institutions. Monthly Index Performance (BET/BSE) 3.2% GDP per Capita (2013 in EUR) 7,301 Impact on investors GDP Real 2013 (Change against prev. year in %) 4.0 For information purposes only. 3-Month Money Market Rate (current in %) 5.01 Inflation in 2013 (yearly average in %) 4.0 Romanian Senate decides to establish FSA EUR/RON 4.42 The draft law regarding the establishment of the Financial Upcoming Holidays Romania none Supervisory Authority (FSA), an institution that from April 30 will be responsible for monitoring the capital market, insurance and private pensions, is scheduled to be submitted for Source: UniCredit, National Statistics a final vote in the Senate at the end of March. Thus, just four BET months after the government started the project, the FSA

Actual 38 Day moving average 200 Day moving average is very close to becoming a reality if it receives a favourable 6000 vote from the Senate. On February 27, the project received 5800 a favourable vote by the Chamber of Deputies. There is a 5600 high chance that the Senate gives an opinion since the bill 5400 has received favourable reports from the Senate’s specialised 5200 committees. 5000 4800 The FSA will be led by a Council of 17 members, but only five 4600 of them, the president, one prime vice president and three 4400 4200 vice presidents, will also have executive positions. The three 4000 vice presidents will be responsible for one financial market

Jul each, which means the capital market, insurance and private Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May pensions. The remaining 12 members are not eligible for an Source: Thomson Datastream office location and will be paid only on the basis of a meeting allowance, not a monthly allowance.

The Council will be the body that establishes new institutions and the organisation chart and will decide on staffing and salaries. Currently, three independent supervisory committees for the capital market, insurances and private pensions have 450 employees and ended 2011 with a cumulative deficit of Market Capitalisation HRK 397.2 bn RON 26 million due to higher staffing costs. YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 Meanwhile, intensive discussions are being conducted to fill SE Turnover (Zagreb SE) HRK 5977.5 mn the 17 positions of the FSA Board, with focus on the leading Monthly Index Performance (Crobex/ZSE) 0.017 position, where the political environment is actively influencing GDP per Capita (2013e in EUR) 7,301 GDP Real 2013e (Change against prev. year in %) 4.0 these discussions. 3-Month Money Market Rate (current in %) 5.01 Inflation in 2013e (yearly average in %) 4.0 Impact on investors EUR/RON 4.42 Upcoming Holidays none The aim of this new market regulator is to decrease bureau- cracy and to ensure more efficient market supervision.

Written and edited by: Andreea Albu and: Iuliana Manastireanu Relationship Manager Account Manager Global Securities Services, Romania Global Securities Services, Romania Tel. +40 21 200 2678 · [email protected] Tel. +40 21 200 1494 · [email protected]

Issue 144, April 2013

3/25/2013 11:25 AM 23

Russia

MinFin to amend non-government pension funds Market Capitalisation RUB 25.8trn legislation YTD Dev. of Market Capitalisation 7.5% The Ministry of Finance (MinFin) of the Russian Federation announced plans on the revision of the current legislation Number of SE Transactions p.m. (MICEX) 6,798,278 concerning non-government pension fund activities. YTD Dev. of SE Transactions 12.2% SE Turnover (MICEX) RUB 13.64trn ■■Legal form – Currently, Russian non-government pension Monthly Index Performance (MICEX) -3.7% funds have the legal status of non-commercial organisations. This legal status is not sufficiently transparent for GDP per Capita (2013 in EUR) 10,754 the current situation, where more than RUB 600 billion GDP Real 2013 (Change against prev. year in %) 3.8 are concentrated in non-government pension funds. Min- 3-Month Money Market Rate (current in %) 6.87 Fin will prepare amendments on the legal status of non- Inflation in 2013 (yearly average in %) 6.4 government pension funds by August 1, 2013. EUR/RUB 39.98 ■■Financial stability – MinFin has prepared a draft law which Upcoming Holidays Russia none should increase transparency of non-government pension funds by shifting the responsibility of the funds to Source: UniCredit, National Statistics their investors. The main proposal is an obligation of non- RTS government pension funds to create insurance reserves on obligatory pension insurance and union guarantee funds Actual 38 Day moving average 200 Day moving average 1800 in addition to the state insurance savings system and appropriate fund, which will be managed by a Deposit 1700 Insurance Agency.

1600 ■■Investment possibilities – MinFin suggests extending the 1500 list of investment instruments available for pension savings management companies. They should obtain the ability to 1400 buy stocks within IPO and SPO, on the OTC market and 1300 on CCP modes of the trading floor.

1200 Market experts relate the proposed legislation amendments Jul Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May to the expected massive privatisations. Source: Thomson Datastream Impact on investors The proposed legislation amendments are supposed to significantly increase the liquidity of the Russian securities market due to the inflow of funds accumulated by the pension system.

Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2013e in EUR) 10,754 GDP Real 2013e (Change against prev. year in %) 3.8 3-Month Money Market Rate (current in %) 6.87 Inflation in 2013e (yearly average in %) 6.4 EUR/RUB 39.98 Upcoming Holidays none

Issue 144, April 2013

3/25/2013 11:25 AM 24 Russia

MinFin prepared draft legislation amendments on ■■20% shares of JSC Novorossiysk Commercial Sea Port creation of Mega-regulator (ISIN RU0009084446) (approximately RUB 12 bn) The Ministry of Finance (MinFin) of Russia has published draft amendments to regulate the transition of the Federal Financial ■■OJSC ROSNANO (ISIN n/a) can increase its share capital Market Service (FFMS) to the Central Bank of Russia (CBR). through an additional issue of shares Plans to create a single regulator on the financial market were ■■ made public in mid-2012; in January 2013 the project was 25% shares of Sovkomflot (ISIN n/a) (RUB 10.6 bn) approved by the President. According to MED representatives the Ministry proposed According to the draft amendments, FFMS should hand over to the Government the further extension of the privatisation its responsibilities in regulation (without rights to introduce any plan as follows: draft laws to the government of Russia), control and supervi- ■■19.5 % shares of Rosneft (ISIN RU000A0J2Q06) sion of the financial markets including insurance activity, credit (RUB 500-550 bn) cooperation and micro financial activity, commodity stock exchanges activity, investment of pension funds savings, etc. ■■More than 50% shares of Rostelecom (ISIN RU0008943394) (approximately RUB 150-200 bn) In addition, the Bank of Russia will be the successor of the FFMS on financial markets regarding the establishment of and ■■2.3% shares of Aeroflot (ISIN RU0009062285) (RUB 1 bn) participation in the capital of legal entities or the participation and membership in organisations, including foreign and ■■26.7% shares of Joint Grain Company (ISIN n/a) international structures. (RUB 2-3 bn)

The draft law is expected to enter into force in June 2013. ■■83.4% shares of International Airport Sheremetyevo (ISIN n/a) (RUB 35 bn) Impact on investors The draft amendments concerning the transfer of FFMS Market experts commented on the MED proposal, taking authorities to CBR constitute a new step in the creation of into consideration the previous modest results in the imple- a Mega-regulator on the Russian financial market. mentation of the privatisation plans, the current version will be successful only with strong political will and favourable market conditions in place. Ministry of Economic Development updated privatisation plan Impact on investors The Ministry of Economic Development (MED) of Russia has Even partial execution of the privatisation plans will create developed a new version of the privatisation plan, which new investment opportunities and decrease the state aims at raising funds for budgeting purposes of RUB 1 tril- sector influence on the Russian market. lion (2% of GDP).

Currently, the approved privatisation plans for 2013 are estimated at RUB 206 to 224 billion and provide the sale of the following shares:

■■5.66% shares of Rosneft (ISIN RU000A0J2Q06) (RUB 148 bn)

■■15-18% shares of VTB (ISIN RU000A0JP5V6) (RUB 100 bn)

■■14% shares of Inter “RAO UES” (ISIN RU000A0JPNM1) (RUB 33-39 bn) (supposed to be sold to Rosneftegaz)

■■7% shares of OJSC Alrosa (ISIN RU0007252813) (RUB 14 bn)

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

Issue 144, April 2013 25

Serbia

Serbia does not need money from IMF for budget or Market Capitalisation RSD 798.8bn foreign currency reserves YTD Dev. of Market Capitalisation 0.0% The International Monetary Fund (IMF) will send a mission to Belgrade in May 2013 for talks that will include negotiations Number of SE Transactions p.m. 36,235 on a new arrangement between Serbia and the lender. If YTD Dev. of SE Transactions -11.6% the negotiations are successful, the arrangement could be SE Turnover (Belgrade SE) RSD 1.6bn concluded by the end of June 2013. However, Serbia does Monthly Index Performance (Belex 15) 0.0% not need money from the IMF for the budget or foreign cur- GDP per Capita (2013 in EUR) 5,453 rency reserves.

GDP Real 2013 (Change against prev. year in %) 3.0 Serbia needs IMF’s programme with the finance institution in 3-Month Money Market Rate (current in %) 10.04 order to improve its credibility and be able to borrow on the Inflation in 2013 (yearly average in %) 5.8 international market at lower interest rates. Also, Serbia is EUR/RSD 111.60 looking forward to the IMF’s advice on medium-term struc- Upcoming Holidays Serbia none tural reforms.

Source: UniCredit, National Statistics Impact on investors For information purposes only. BELEX15

Actual 40 Day moving average 200 Day moving average 600 580 560 540 520 500 480 460 440 420 400 Jul Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May

Source: Bloomberg

Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2013e in EUR) 5,453 GDP Real 2013e (Change against prev. year in %) 3.0 3-Month Money Market Rate (current in %) 10.04 Inflation in 2013e (yearly average in %) 5.8 EUR/RSD 111.60 Upcoming Holidays none

Written and edited by: Aleksandra Ilijevski Senior Relationship Manager Global Securities Services, Serbia Tel. +381 11 3028 612 · [email protected]

Issue 144, April 2013

3/25/2013 11:25 AM 26

Slovak Republic

Bratislava Stock Exchange trading results in Market Capitalisation EUR 38.2bn February 2013 YTD Dev. of Market Capitalisation -3.9% In February 2013, the electronic trading system of the Bratislava Stock Exchange (BSSE) was open to members Number of SE Transactions p.m. 1,933.0 in 20 business days. A total of 1,933 transactions were YTD Dev. of SE Transactions 54.1% concluded in this period, in which 551,991,238 units of SE Turnover (Bratislava SE) EUR 0.7bn securities were traded, and the achieved financial volume Monthly Index Performance (SAX/BSSE) -4.1% exceeded EUR 655.47 million. In comparison with the previ- GDP per Capita (2013 in EUR) 14,478 ous month, the amount of traded securities rose by 4.99% and the number of concluded transactions increased by GDP Real 2013 (Change against prev. year in %) 4.3 54.15%, whereas the financial volume fell by 2.61%. All three 3-Month Money Market Rate (current in %) n.a. indicators recorded a decrease on a year-on-year basis: the Inflation in 2013 (yearly average in %) 3.4 number of transactions by 16.65%, the amount of traded Upcoming Holidays Slovakia none securities by 32.33% and the achieved financial volume by 38.21%. Continuing the trend from previous periods, Febru- Source: UniCredit, National Statistics ary 2013 saw negotiated deals dominate over electronic order book transactions (i.e. price-setting deals), with the former SAX accounting for 98.68% of the total trading volume. A total Actual 38 Day moving average 200 Day moving average of 199 negotiated deals (in a volume of EUR 646.84 million) 220 were concluded, as opposed to 1,734 electronic order book 215 transactions in a financial volume of EUR 8.63 million. 210 205 Investors continued to focus on debt securities in Febru- 200 ary 2013, as bond transactions generated 99.2% of the 195 190 achieved volume. A total of 304 bond transactions were 185 concluded in the period under review, in which 551,797,885 180 units of securities were traded in a financial volume exceed- 175 ing EUR 650.2 million. In comparison with January 2013 it 170 represents an increase in the amount of traded securities Jul Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May (+5.01%), a decrease in the number of concluded trans-

Source: Thomson Datastream actions (-4.40%), and a decrease in the achieved financial volume (-2.01%). All three indicators, however, decreased on a year-on-year basis: the number of transactions fell by 26.92%, the amount of traded securities went down by 32.27% and the achieved financial volume dropped by 36.85%. Similar to previous months, negotiated deals in bonds (in a financial volume of EUR 644.99 million) again significantly dominated over electronic order book transac-

Market Capitalisation HRK 397.2 bn tions (in a volume of EUR 5.21 million). YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 Transactions concluded by non-residents in February 2013 YTD Dev. of SE Transactions 7.107 accounted for 57.78% of the total trading volume, out of which SE Turnover (Zagreb SE) HRK 5977.5 mn the buy side represents 45.71% and the sell side 69.85%. Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2013e in EUR) 14,478 GDP Real 2013e (Change against prev. year in %) 4.3 The SAX index ended the month of February 2013 at 3-Month Money Market Rate (current in %) - 179.9 points, representing a 4.05 percent decrease on Inflation in 2013e (yearly average in %) 3.4 a month-on-previous-month basis and a 14.14-percent EUR/SKK - Upcoming Holidays none decrease year on year.

Impact on investors For information purposes only.

Issue 144, April 2013

3/25/2013 11:25 AM 27 Slovak Republic

Annual Report of the Debt and Liquidity Management In 2013 ARDAL plans, on behalf of the Ministry of Finance, Agency for 2012 to issue securities with a total value of approximately EUR The Debt and Liquidity Management Agency (ARDAL) ful- 8.3 billion. The majority will consist of government bonds with filled all criteria defined in the Government Debt Manage- a value of approximately EUR 7.3 billion sold via auctions and ment Strategy, carrying the historically low cost of public syndicates. The rest, approximately EUR 1.0 billion, will be debt financing, in 2012 almost unchanged compared to the T-Bills issued to the Ministry of Finance’s own portfolio and years 2010 and 2011. Taking advantage of market oppor- then sold by auctions in the secondary market. All auctions tunities brought the best risk parameters of the government will be made on a decision based on communication with debt portfolio in history, the longest average maturity and the the primary dealers. duration reaching a level of five years.

Key findings Impact on investors ■■During the year 2012 Slovakia issued state securities in Slovak Republic debt is financed with historically the best the total volume of EUR 10.8 billion (124.9 % of planned risk parameters, the longest average maturity and the EUR 7.6 billion, adjusted by buybacks). Originally expected duration reaching a level of five years. gross borrowing needs were already fulfilled in the first half of 2012.

■■During the year six sales of government bonds were made via a syndicate arrangement.

■■ARDAL introduced new ways of selling government bonds thorough “direct sale” and “private placement”.

■■In 2012, the main aim of debt management was investor base diversification. The Ministry of Finance also issued government bonds in foreign currencies USD, CZK and CHF for the first time in the history.

■■In the second half of 2012, Slovakia sold long-term government bonds with the historically lowest yield to maturity (12 years at 3.421% p.a. and 20 years at 4.300% p.a.).

■■During the whole year yields of the Slovak government bonds continued to decline.

Written and edited by: Rastislav Rajninec Senior Relationship Manager Global Securities Services, Slovak Republic Tel. +421 2 4950 2424 · [email protected]

Issue 144, April 2013 28

Slovenia

Slovenia passes labour market reform Market Capitalisation EUR 17,332mn The new labour reform was passed in the Slovenian National YTD Dev. of Market Capitalisation -1.9% Assembly with all in favour, after the government and union negotiator reached an agreement. Number of SE Transactions p.m. 4,634 YTD Dev. of SE Transactions -0.01% The reform includes measures to increase the flexibility of the SE Turnover (Ljubljana SE) EUR 26,867mn labour market by loosening employment and dismissal pro- Monthly Index Performance (SBI TOP) 7.8% cedures, introducing measures to restrict fixed-term employment with clearer wording to prevent successive fixed-term GDP per Capita (2013 in EUR) 20,321 employment contracts and reduce market segmentation, GDP Real 2013 (Change against prev. year in %) 2.5 especially by the introduction of severance pay for fixed-term 3-Month Money Market Rate (current in %) 0.17 employment. These measures aim to increase permanent Inflation in 2013 (yearly average in %) 2.6 employment contracts. Upcoming Holidays Slovenia none The new legislation also redefines temporary and occasional work for pensioners. Source: UniCredit, National Statistics

SBI TOP Other new measures in the legislation aim at strengthening internal flexibility with the possibility of re-assigning workers to Actual 40 Day moving average 200 Day moving average 750 other suitable posts without their consent, lower compensa- tions for the waiting period of up to 80% of the basis and the 700 obligation of workers to educate themselves for the needs of 650 the employer during this time.

600 Impact on investors 550 New labour legislation in Slovenia aims to bring more flex-

500 ibility to the labour force, which will create a better investment environment in Slovenia. 450 Jul Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May

Source: Thomson Datastream

Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2013e in EUR) 20,321 GDP Real 2013e (Change against prev. year in %) 2.5 3-Month Money Market Rate (current in %) 0.17 Inflation in 2013e (yearly average in %) 2.6 EUR/RSD - Upcoming Holidays none

Issue 144, April 2013

3/25/2013 11:25 AM 29 Slovenia

New government in Slovenia The new government will have to continue the work which The Slovenian Commission for the Prevention of Corruption was initiated by the previous government. The two most in January 2013 accused Prime Minister Janez Janša and important tasks will be the stabilisation of public finances leader of the opposition Zoran Jankovic´ of tax and income and economic growth and development. irregularities. This prompted large protests across the country among ordinary Slovenians. In consequence, three out of Impact on investors five parties left the government coalition and the government For information purposes only. coalition lost the majority in the National Assembly.

After the no-confidence vote in the National Assembly and the fall of the government at the end of February and after the head of the opposition gave his resignation, a new coalition was formed. The new Prime Minister is Alenka Bratušek, who leads a coalition of three parties that left the government of Janez Janša and the biggest opposition party, which she heads.

Written and edited by: Aljoša Benc˘ina Senior Relationship Manager Global Securities Services, Slovenia Tel. +386 1 587 64 51 · [email protected]

Issue 144, April 2013 30

Ukraine

Perspectiva Stock Exchange to launch T-bills trades Market Capitalisation (PFTS) UAH 163.4bn against securities pledging YTD Dev. of Market Capitalisation (PFTS) -2.7% Perspectiva (the Dnipropetrovsk based Stock Exchange), which has covered 59% of all on-exchange T-bills trades in Number of SE Transactions p.m. (PFTS) 66,857 2012, is to launch T-bills trades against securities pledging. YTD Dev. of SE Transactions (PFTS) 28.9% SE Turnover (PFTS) UAH 0.7bn For these new kinds of trades preliminary deposition of cash Monthly Index Performance (PFTS) 5.9% will not be required, as it is for the moment for the guaranteed settlement of T-bills netting trades. To receive the cash limit GDP per Capita (2013 in EUR) 4,241 from the Stock Exchange, T-bills have to be deposited and GDP Real 2013 (Change against prev. year in %) 4.4 blocked as a pledge with the Depository of the National Bank 3-Month Money Market Rate (current in %) 9.50 of Ukraine (NBU). Inflation in 2013 (yearly average in %) 8.7 EUR/UAH 10.59 As soon as the Stock Exchange receives information from the Depository of NBU about the T-bills blocking, traders will Upcoming Holidays Ukraine none be able to conclude deals with T-bills in the amount equal to 85 to 90% of the portfolio value, as the portfolio is estimated Source: UniCredit, National Statistics with a discount of up to 15%. The net position needs to be PFTS paid at the end of the trading session.

4100 Actual 38 Day moving average 200 Day moving average It is expected that the price of the service will be 0.0015% of 3900 the agreed upon amount, but no less than UAH 50 (approxi- 3700 mately. EUR 5). 3500 The introduction of these kinds of trades will be possible 3300 once the Amendments to the Depository Regulation of the 3100 NBU have been adopted, which is expected to take place 2900 by summer 2013.

2700 According to experts this service will be in great demand in 2500 the case of low liquidity in the banking system. Jul Apr Jan Oct Jun Feb Mar Mar Dec Aug Sep Nov May

Source: Thomson Datastream Impact on investors Possibility for traders to make T-bill trades without prior deposition of cash.

Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2013e in EUR) 4,241 GDP Real 2013e (Change against prev. year in %) 4.4 3-Month Money Market Rate (current in %) 9.50 Inflation in 2013e (yearly average in %) 8.7 EUR/UAH 10.59 Upcoming Holidays none

Written and edited by: Katherine Yevtushenko Relationship Manager Global Securities Services, Ukraine Tel. +38 044 590 1210 · [email protected]

Issue 144, April 2013

3/25/2013 11:25 AM 31

Azerbaijan

Recent securities market legislation update in Azerbaijan The State Securities Committee of Azerbaijan (SSC) has presented to the professional participants of the securities market a new regulation system of their activities introduced by the two following documents: the new rules of brokerage activities on the securities market and the reporting requirements of professional participants, its provision and disclosure.

The new rules of brokerage activities entered into force on February 20, 2013. The rules provide a separation of broker and dealer operations, when executed within one company, determine the priority of the clients’ order execution and stipulate non-disclosure of the clients’ data to third parties.

The creation of a new reporting system for professional participants on the securities market was a result of the introduction of Anti-Money Laundering (AML) risk control.

In addition, SSC announced the finalisation of the draft law “On the Securities Market”, which is part of the capital markets modernisation project supervised by the World Bank.

Impact on investors The amendments to the legislation aim at reinforcing the development of Azerbaijan’s financial market.

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

Issue 144, April 2013 32

Your Contacts

Central Team Bosnia and Herzegovina Tomasz Grajewski UniCredit Bank d.d. Tel. +48 22 524 5867 Zelenih beretki 24 [email protected] 71 000 Sarajevo Bosnia and Herzegovina Sven Trahan Tel. +43 50505 57311 Lejla Sabljica [email protected] Tel. +387 33 491 777 [email protected] Michael Slavov Tel. +43 50505 58511 Amra Tela c´ evic´ [email protected] Tel. +387 33 491 816 [email protected] Evelyne Wininger Tel. +43 50505 42788 Belma Kovacˇ evic´ [email protected] Tel. +387 33 491 810 [email protected] Philipp Aschl Tel. +43 50505 58508 [email protected] Bulgaria Pawel Muszalski UniCredit Bulbank AD Tel. +43 50505 57315 6 Vitosha Boulevard, 2nd floor [email protected] BG-1000 Sofia Markus Winkler Bulgaria Tel. +43 50505 58547 Veselin Stefanov [email protected] Tel. +359 2 923 2818 [email protected] Austria Borislav Hitov Tel. +359 2 923 2670 UniCredit Bank Austria AG [email protected] Julius Tandler-Platz 3 A-1090 Vienna Austria Croatia Günter Schnaitt Zagrebacka Banka d.d. Tel. +43 50505 58501 Savska 62 [email protected] HR-10000 Zagreb Thomas Rosmanitz Croatia Tel. +43 50505 58515 Valerija Bezak [email protected] Tel. +385 1 6305 430 Tina Fischer [email protected] Tel. +43 50505 58512 Jelena Bilusic [email protected] Tel. +385 1 6305 137 Stephan Hans [email protected] Tel. +43 50505 58513 [email protected]

Issue 144, April 2013 33 Your Contacts

Czech Republic Poland UniCredit Bank Czech Republic a.s. Bank Polska Kasa Opieki SA Zeletavska 1525/1 31 Zwirki i Wigury Street CZ-140 92 Prague 4 PL-02-091 Warsaw Czech Republic Poland

Michal Stuchlík Tomasz Grajewski Tel. +420 955 960 780 Tel. +48 22 524 5867 [email protected] [email protected]

Tomáš Vácha Mariusz Pie˛ kos´ Tel. +420 955 960 777 Tel. +48 22 524 5852 [email protected] [email protected]

Zbynek Oborny Kamil Polak Tel. +420 955 960 779 Tel. +48 22 524 5863 [email protected] [email protected]

Alena Kalasova Marta Boboryk Tel. +420 955 960 778 Tel. +48 22 524 58 61 [email protected] [email protected]

Krzysztof Pekrul Hungary Tel. +48 22 524 5864 [email protected] UniCredit Bank Hungary Zrt. Szabadsag ter 5 – 6, 6th floor Marek Cioroch H-1054 Budapest Tel. +48 22 524 5862 Hungary [email protected]

Júlia Romhányi Tel. +36 1 301 1923 Romania [email protected] UniCredit Tiriac Bank S.A. Lívia Mészáros 1F, Expozitiei Blvd. Tel. +36 1 301 1921 RO-012101, Bucharest 1 [email protected] Romania

Melinda Czéh Irina Savastre Tel. +36 1 301 1920 Tel. +40 21 200 2670 [email protected] [email protected]

Viviana Traistaru Kazakhstan Tel. +40 21 200 2673 [email protected] JSC ATF Bank Furmanov Street 100 Andreea Albu KZ-050000 Almaty Tel. +40 21 200 2678 Kazakhstan [email protected]

Vladimir Vassilyev Tel. +7 727 258 3015 (2031) [email protected]

Saida Abdraimova Tel. +7 727 258 3015 (1263) [email protected]

Issue 144, April 2013 34 Your Contacts

Russia Slovenia ZAO UniCredit Bank UniCredit Bank Slovenija d.d. 9, Prechistenskaya Emb. Wolfova 1 RU-119034 Moscow SI-1000 Ljubljana Russian Federation Slovenia

Alexander Nazarov Vanda Mocˇ nik-Kohek Tel. +7 495 258 73 49 Tel. +386 1 5876 450 [email protected] [email protected]

Ksenia Liskina Elmedina Garibovi ´c Tel. +7 495 258 7258 – 3455 Tel. +386 1 5876 597 [email protected] [email protected]

Svetlana Vlasova Aljoša Bencˇ ina Tel. +7 495 258 7258 – 3453 Tel. +386 1 5876 451 [email protected] [email protected]

Evgenia Klimova Tel. +7 495 232 5298 Ukraine [email protected] PJSC UniCredit Bank 14a, Yaroslaviv Val Serbia UA-01034 Kyiv Ukraine UniCredit Bank Serbia JSC Omladinskih Brigada 88 Bohdana Yefremova RS-11070 Belgrade Tel. +380 44 230 3341 Serbia [email protected]

Jasmina Radicˇ evic´ Katherine Yevtushenko Tel. +381 11 3028 611 Tel. +380 44 590 1210 [email protected] [email protected]

Aleksandra Ilijevski Tel. +381 11 3028 612 [email protected]

Goran Platiša Tel. +381 11 3028 687 [email protected]

Slovakia UniCredit Bank Slovakia A.S. Sancova 1/A SK-811 04 Bratislava Slovak Republic

Zuzana Milanová Tel. +421 2 4950 3702 Websites [email protected] gss.unicreditgroup.eu Rastislav Rajninec www.gtb.unicredit.eu Tel. +421 2 4950 2424 www.unicreditgroup.eu [email protected] www.bankaustria.at

Issue 144, April 2013 35

Disclaimer

This publication is presented to you by: Notwithstanding the above, if this publication relates to securities subject to Corporate & Investment Banking the Prospectus Directive (2005) it is sent to you on the basis that you are a UniCredit Bank Austria AG Qualified Investor for the purposes of the directive or any relevant implement- Julius Tandler-Platz 3 ing legislation of a European Economic Area (“EEA”) Member State which has A-1090 Wien implemented the Prospectus Directive and it must not be given to any person who is not a Qualified Investor. By being in receipt of this publication you undertake that you will only offer or sell the securities described in this publication in circumstances which do not require the production of a prospectus under The information in this publication is based on carefully selected sources Article 3 of the Prospectus Directive or any relevant implementing legislation believed to be reliable. However we do not make any representation as to of an EEA Member State which has implemented the Prospectus Directive. its accuracy or completeness. Any opinions herein reflect our judgement Note to US Residents: at the date hereof and are subject to change without notice. Any investments presented in this report may be unsuitable for the investor depend- The information provided herein or contained in any report provided herein is ing on his or her specific investment objectives and financial position. Any intended solely for institutional clients of Corporate & Investment Banking of reports provided herein are provided for general information purposes only UniCredit Group acting through UniCredit Bank AG, New York Branch and and cannot substitute the obtaining of independent financial advice. Pri- UniCredit Capital Markets, Inc. 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Issue 144, April 2013 36

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: 12000 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 Otto-Wagner-Platz 5 A-1090 Vienna www.fma.gv.at Membership Austrian Federal Economic Chamber, bank and insurance division Wiedner Hauptstraße 63 A-1040 Vienna www.wko.at Austrian Bankers’ Association Boersegasse 11 A-1010 Vienna 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 144, April 2013