GSS NEWSLETTER ISSUE 108 April 2010 2

Content Dear Clients 4 Austria 6 SICS upgraded by detailed information on penalty interest for default delivery 6 Investment fund market has overcome trough 6 2010 will be the year of dividend stocks 6 Bosnia and Herzegovina 7 UniCredit Bank d.d. results for the financial year 2009 7 Tripartite agreement to further central banking 7 Bulgaria 9 Bulgarian Stock Exchange has published a new strategy for Development 2010 – 2012 9 Croatia 12 Zlatna Kuna 2009 awards presented 12 Abolishment of 2% crisis tax rate 12 Government new stimulations 13 Government issues new bonds 13 Czech Republic 14 The CNB comments on the February 2010 inflation figures 14 Positive Czech Banking Sector Stress Test Results 14 Hungary 16 Economic Research Institute Raised Hungary’s GDP Projection for 2010 16 Turquoise Extend Trading Service to Hungarian Securities 16 Kazakhstan 17 Traded value falls by 20.5% year-on-year, reaches KZT 4.1 trn (USD 27.7 bn) 17 Repo transaction market value falls by 27.2% year-on-year, reaches KZT 1.8 trn (USD 12.5 bn) 17 GS traded value grows by 183.3% year-on-year, reaches KZT 284.3 bn (USD 1,923.2 mn) 17 Kyrgyzstan 18 Poland 19 The Warsaw bourse becomes a “Recognised Stock Exchange” 19 Launch of the Target2Securities National Users Group 19 Romania 21 Economy 21 Fitch Ratings awarded BB+ to Romania’s Eurobonds 21 The regulation no. 5 issued by CNVM was published in the Official Gazette 22

Issue 108, April 2010 3

Russia 23 Central Bank Decreased the Refinancing Rate 23 FFMS started to publish information of injunctions issued in the name of market players 23 FFMS published the Order draft on the Foreign Securities registration and placement in Russia 23 RTS launches unified execution on FORTS and RTS Standard 24 Serbia 25 Vienna Initiative Members Allowed to Cut Exposure to Serbia 25 Central Bank Approves Reserves Reduction 25 Slovak Republic 27 Cdcp Statistics 2009 27 Bratislava Stock Exchange Trading in February 28 Slovenia 29 Government Amends Law on IMF Membership 29 Business Sentiment Down Slightly in February 29 D&B Sees Gradual Economic Recovery for Slovenia 30 Tuerk Discusses Economic Situation with ECB Officials 30 Ukraine 31 Clearstream opened correspondent account for the National Depository of Ukraine (NDU) 31 Your Contacts 32 Disclaimer 35 Imprint 36

Issue 108, April 2010 4 Dear Clients

Lejla Sabljica (Head of GSS in Bosnia)

It is with great pleasure that I take this opportunity to write a Those of you, who have been present in our markets since few words about UniCredit Bank d.d., member of UniCredit 2006, the year of introduction of the legislation on securities Group in Bosnia and Herzegovina, our local Global Securities services, have certainly noticed improvement in terms of Services (GSS) team and the Bosnian Market. the legal framework and the infrastructure in both markets. There are many developments that have marked the Bosnian UniCredit Group has a leading position in the banking market. In 2007 it was the exceptional growth of markets, sector in Bosnia and Herzegovina. The integration of HVB establishment of the first investment fund, licensing banks Central Profit Bank d.d. and UniCredit Zagrebačka Banka from FBiH to provide custody services in RS and the first d.d. started in 2006 and was finalized in early March 2008 corporate bonds issue in the market. In 2008 custody banks with the merger of the two banks. The new bank, UniCredit were allowed to apply for the membership of the clearing and Bank d.d., currently employs ca. 1400 employees and has settlement system, regulations on securities lending were 96 branches throughout the country. introduced andthe CSD in FBiH moved the liquidity reserve requirement for all members to T+2 (previously T+1). Year UniCredit Bank d.d. has been present in the securities services 2009 brought the implementation of a new Law on securities industry in Bosnia and Herzegovina since its beginnings. market and Law on investment fund in FBiH, introduction of The first transaction in the history of the capital market in ISIN codes in the two markets, new market segmentation Bosnia, involving a custody bank, was settled by HVB Central and price fluctuation limits for the Sarajevo Stock Exchange Profit Bank (today’s UniCredit Bank d.d.) in 2006. We are and the launching of a new index, SASX-30. a licensed custody bank that provides securities services in both markets in Bosnia and Herzegovina: Federation of BiH The improvement of the market infrastructure continues in 2010. (Sarajevo Stock Exchange) and Republic of Srpska (Banja Just recently the CSD in the Republic of Srpska moved the liquid- Luka Stock Exchange). UniCredit Bank d.d. is member of the ity reserve requirement for all members to T+2 (previously T+1). clearing and settlement system of both CSDs in the country (Federation of BiH and Republic of Srpska). In this developing market environment, GSS Bosnia and Herzegovina stays committed to securities services and We are proud of having been ranked Top Rated in 2009, dedicated to meet our clients’ needs and expectations. We Top rated in 2008 and Commended in 2007 by the Global continue our lobbying efforts to further develop the market Custodian magazine. infrastructure in line with the international standards.

Members of the GSS team in Bosnia and Herzegovina are I would like to thank all our clients for the trust in UniCredit bank highly-skilled custody experts who combine the local market d.d and would like to ensure that providing the best service in expertise with the knowledge of UniCredit Group know-how. Bosnia and Herzegovina to you is and will remain our priority. Our GSS experts have been trained to provide securities services by the SEC and internally within UniCredit Group’s GSS. Yours sincerely,

Lejla Sabljica Head of GSS in Bosnia

Issue 108, April 2010 5 Dear Clients

Dear Clients

Attila Szalay-Berzeviczy Josip Kevari Global Head of Global Securities Services

I am very pleased to announce a new member of the GSS’s Global Product and Network Management team, Josip Kevari.

Josip has been in the securities services business for the last 13 years. He started his career in the industry by joining the Custody team at Zagrebacka Banka in 1997. Since then he performed various functions within the Group, including the position of the Deputy Head of Custody (at Bank Austria Creditanstalt, Croatia), Product Manager (e.g. being responsible for the introduction of Custody Services in Serbia and Bulgaria), as well as Sales and Relationship Manger for Austria at our Vienna office. The last position he held before joining GSS’s Global Product & Network Management was the function of the Network Manager at UniCredit Bank Austria where he overlooked various oversees and western European countries.

In his new role, Josip will report to Pawel Muszalski, Global Head of Product and Network Management.

Please join me in welcoming the new member of the GSS team and wishing Josip all the best in his new role.

Best regards,

Attila Szalay-Berzeviczy Managing Director Global Head of Global Securities Services

Issue 108, April 2010 6

Austria

SICS upgraded by detailed information on penalty Market Capitalisation EUR 75.0bn interest for default delivery YTD Dev. of Market Capitalisation 0.2% The clearing system used for the cash market (SICS) has been upgraded by detailed information on penalty interest Number of SE Transactions p.m. n.a. for default of delivery. YTD Dev. of SE Transactions n.a. SE Turnover (Vienna SE) EUR 3.6bn Time schedule regarding the implementation of the new Monthly Index Performance (ATX/VSE) -2.2% release of SICS: GDP per Capita (2010 in EUR) 33,266 26 March 2010: implementation in the simulation environment GDP Real 2010 (Change against prev. year in %) 1.3 3 May 2010: implementation in the production environment 3-Month Money Market Rate (current in %) 0.66 Detailed information on the amendments of the clearing system Inflation in 2010 (yearly average in %) 1.2 can be found on the website of CCP.A. http://en.ccpa.at/ Upcoming Holidays 5 April Source: CCP.A

Source: Bank Austria, National Statistics Impact on investors For information purposes only. Actual 38 Day moving average 200 Day moving average 4100

3600 Investment fund market has overcome trough Statistics compiled by the European Investment Fund Asso- 3100 ciation Efama confirm this. 2600 Net inflow totaled EUR 190 bn last year. The upturn is notice- 2100 able in Austria as well according to the Association of Austrian

1600 Investment Fund Companies (Vereinigung oesterreichischer Investmentfondsgesellschaften, VÖIG). 1100

600 In January 2010, domestic investment fund management compa- Jul Apr Okt Jun Jan Mai Mrz Mrz nies reported a total of EUR 137.7 bn – which is EUR 12.2 bn more Feb Aug Sep Nov Dez than in January 2009 and EUR 16.4 bn more than in March of the Source: Thomson Datastream previous year. This increase was driven mainly by rising prices.

Source: Wiener Borse

Impact on investors For information purposes only.

2010 will be the year of dividend stocks 2009 was an exceptional year for stock markets. The leading index in Vienna, the ATX, also rose by 40%. However, this year there will not be any such price jumps according to analysts. “Prices will not develop that spectacularly in 2010,” said financial expert Wolfgang Matejka, “But it will offer great opportunities for the currently neglected defensive stocks with solid dividends Therefore, 2010 will be the year of dividend stocks.”

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 108, April 2010 7

Bosnia and Herzegovina

UniCredit Bank d.d. results for the financial year 2009 Market Capitalisation (Sarajevo SE) BAM 7.5bn In 2009, the Bank continued improving its position of a relia- YTD Dev. of Market Capitalisation 6.8% ble business partner to individuals, corporates and the State. We managed to maintain a good capital base and solid liquid- Number of SE Transactions p.m. 2,044 ity, while enhancing continuously the quality of our services YTD Dev. of SE Transactions -12.7% provided to our clients. In respect of the last year, financial SE Turnover (SASE) BAM 9.8mn results, net profit before tax, reached BAM 34.5 mn, the Monthly Index Performance (SAX-10/SASE) -1.4% total income BAM 180.7 mn. Assets exceeded BAM 3.4 bn. Market Capitalisation (Banja Luka SE) BAM 3.6bn The loan portfolio amounted to BAM 2,257 mn. Out of this YTD Dev. of Market Capitalisation -4.0% amount, retail loans made BAM 1,259 mn and corporate loans BAM 998 mn. Total deposits amounted to BAM 2,626 mn. Number of SE Transactions p.m. 1,213 YTD Dev. of SE Transactions -63.4% At the year end, the Bank had 96 branches in BH, and its SE Turnover (BLSE) BAM 4.1mn client service offer, apart from loans, guarantees, letters of Monthly Index Performance (BIRS/BLSE) -2.8% credit and deposits for corporate clients, as well as loans GDP per Capita (2010 in EUR) 3,186 and savings for retail clients, included also SMS service, m-ba mobile banking, standing order, Western Union and GDP Real 2010 (Change against prev. year in %) -1.0 MoneyGram money transfers, as well as money market and 3-Month Money Market Rate (current in %) n.a. internet banking transactions. Inflation in 2010 (yearly average in %) 2.1 BAM/EUR 1.94 In 2009, we continued expanding our ATM and POS network, Upcoming Holidays none so that at the year end the Bank had 199 installed ATMs and more than 5,000 EFT POS devices at our business partners’ points of sale. UniCredit Bank ATM network was the greatest Source: Bank Austria, National Statistics one in BH, and it provided clients with 24/7 instant access to their accounts. Through the network of 96 branches in the 1600 Actual 38 Day moving average 200 Day moving average territory of BH, the Bank services more than 930,000 clients. 1450

1300 Impact on investors For information purposes only. 1150

1000 Tripartite agreement to further central banking 850 The European Central Bank (ECB), on 15 March 2010, announced a programme of technical cooperation with the 700 Central Bank of Bosnia and Herzegovina, in collaboration Jul Apr Okt Mai Jun Jan Mrz Mrz Feb Aug Sep Nov Dez with a number of Euro area national central banks (NCBs). The EU has assigned EUR 1 mn to the programme from its

Source: Bloomberg Instrument for Pre-Accession Assistance (IPA). The aim of the programme is to support the Central Bank of Bosnia and Herzegovina in its efforts to implement the central banking standards of the European Union (EU) in preparation for Bosnia and Herzegovina’s accession to the EU. The 18-month programme, a follow-up to the needs assessment programme carried out in 2007, will start on 1 April 2010.

The programme was announced in Sarajevo by Gertrude Tumpel-Gugerell, Member of the Executive Board of the ECB, Kemal Kozari´c, Governor of the Central Bank of Bosnia and Herzegovina, and Dimitris Kourkoulas, Head of the EU Delegation to Bosnia and Herzegovina. All parties agreed that this programme is an important step in strengthening

Issue 108, April 2010 8 Bosnia and Herzegovina

economic and financial cooperation between the Central Bank of Bosnia and Herzegovina and the Euro area NCBs, as well as between Bosnia and Herzegovina and the EU.

The programme will cover six different areas, the first three of which follow up on the recommendations from the aforemen- tioned 2007 programme: 1) statistics; 2) economic analysis and research; 3) financial stability; 4) harmonisation of legislation with the EU; 5) coordination of integration with the EU; and 6) improvement of the IT services at the Central Bank of Bosnia and Herzegovina.

The programme will involve experts from the ECB, the Deutsche Bundesbank, the Bank of Greece, the Banco de España, the Banca d’Italia, De Nederlandsche Bank, the Oesterreichische Nationalbank and Banka Slovenije. The ECB will dispatch a coordinator to Sarajevo for the duration of the programme.

Source: The Central Bank of Bosnia and Herzegovina

Impact on investors For information purposes only.

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

Issue 108, April 2010 9

Bulgaria

Bulgarian Stock Exchange has published a new Market Capitalisation BGN 11.0bn strategy for Development 2010 – 2012 YTD Dev. of Market Capitalisation -5.3% The deepening global economic crisis in the second half of 2008 require revision of some of the priorities to the Bulgarian Number of SE Transactions p.m. n.a. Stock Exchange in order to merge its place in the international YTD Dev. of SE Transactions n.a. capital markets and the marked impact of the crisis over Bul- SE Turnover (Bulgarian Stock Exchange) BGN 28.2mn garian’s sector. This strategy reflects the view of the BSE Sofia Monthly Index Performance (SOFIX) -3.9% about the main challenges and necessary actions to achieve GDP per Capita (2010 in EUR) 4,469 the targets set in the context. The mission of BSE-Sofia is GDP Real 2010 (Change against prev. year in %) -1.0 linked with the creation and development of an organized capital market, providing members of the Exchange and their 3-Month Money Market Rate (current in %) 4.00 customer’s equal access to market information and equal Inflation in 2010 (yearly average in %) 0.6 conditions for participation in trading in financial instruments. EUR/BGN 1.96 The main strategic objective of BSE-Sofia has reached a period Upcoming Holidays 2, 5 April of 2 years of modern and an efficient capital market in Bulgaria. Reaching this goal would contribute to become a source of Source: Bank Austria, National Statistics funding for the Bulgarian business and major tool in the Bulgar- ian economy. In this regard, the BSE-Sofia has set the task

Actual 38 Day moving average 200 Day moving average to undertake the following initiatives to support the primary 700 strategic objective as follows:

625 ■■Introduction of new instruments, types of contracts and 550 trading opportunities

475 ■■Improving market infrastructure, together with other 400 institutions

325 ■■Improving conditions for trade

250 ■■Attracting new investors and issuers Jul Apr Okt Jan Mai Jun Mrz Mrz Feb Aug Sep Nov Dez ■■Regulatory changes Source: Thomson Datastream ■■Corporate Governance

■■Improving corporate structure of the company

1. New instruments and types of orders

■■Spot-trading with warrants and certificates Among short-term objectives of the BSE-Sofia is the establishment of a market for structured products, where certificates, warrants and other products based on indices and stocks can be traded. In early November 2009 BSE-Sofia has adopted changes in its Rules relating to regulation of new markets, which come into effect on 8 March 2010 as regards the development of this segment, however, of particular importance will be the desire of financial institutions to issue such instruments and investors to trade with them. With regard to other possibili- ties for the spot-trading financial instruments BSE - Sofia will review and update the rules for their dialogue with the investment and brokerage community about the interest of market participants in launching new types of trading instruments.

Issue 108, April 2010 10 Bulgaria

■■Margin buys and short selling nity to borrow the relevant measures in order to take One of the main priorities in the short term that is rel- the short position. At the same time Ordinance � 16 evant to both, the introduction of new instruments on the creates practical obstacles most notably by requiring BSE-Sofia and to improve the conditions of stock trading, securities to be lent only in connection with short sales. eliminating the technical difficulties in concluding a margin purchases and short-selling. At the time they are allowed In pursuance of the above BSE-Sofia will make con- a certain number of financial instruments that meet the crete proposals to change � 16 of the Ordinance to defined criteria for liquidity by instruments themselves are facilitate the commission of such transactions. The announced daily by the Exchange. But the fact is that such opportunity for a conclusion, however, depends on transactions are actually missing as many members do the availability of efficient clearing, which falls outside not in exchange offer their customers a similar service, the scope of the functions of the regulated market, it because that is the completion of transactions’ signifi- can be expected that such transactions would be made cant difficulties. To resolve this problem BSE-Sofia could possible by the end of 2010. involved with expert assistance in the future expansion of Deadline: end of 2010 activities by clearing a CD that will allow centralized man- Partners: Financial Supervision Commission, agement of benefits and limiting the positions. In addition, Ministry of Finance, Central Depository an opportunity for short sales of emission shares included ■■ in the calculation of indices on BSE-Sofia would allow a Exchange Trade Funds (ETF) later stage to offer products and derivatives (eg futures) In the medium term priorities among the BSE-Sofia is the on the relevant index. creation of a market segment trading exchange-traded funds (ETFs). The Exchange, together with other partici- Thus, this ordinance creates significant barriers on several pants establishing working group for structured products levels, which mostly can be reduced to: in 2009 will contribute to this project, and according to the Bulgarian Association of Asset Management, companies Lack of effective system for securities lending and already defined specific proposals for legislative changes. management collateral on loans The realization of this objective depends entirely on the As is known, the above constitutes to the main problem exchange, then a specific deadline for making legislative facing the real implementation of margin purchases and changes cannot be determined, but their actual imple- short-selling as it is much more difficult to find free secu- mentation at BSE - Sofia will take appropriate action in rities to be employed in connection with a beam sale, coordination of the changes in trading such products as respectively - to be monitored for their market value and the platform for commerce opportunity for more effective if the grant security corresponds to it. In practice, the and especially developed instruments. absence of such a system compels investment firms Deadline: First Quarter of 2011 appearing to be quasi-clearing institutions with respect Partners: Financial Supervision Commission, to their customers and the lack of a centralized clearing BAAMC, Ministry of Finance of obstacles when it comes to relations between two individual firms. ■■Futures and Options In the long term, an important strategic objective is the Overregulation in terms of margin buys to which they formation of a derivative market that starts trading futures apply same criteria and options, as the realization of such project depends As for margin purchase loans provided generally in on an efficient clearing. Another problem is related to the the form of money, the possibility of their return is not liquidity underlying assets on which the structure will be rel- influenced so much by liquidity instruments as in the evant derivatives as low liquidity and creates conditions for short sale where the loan is in the form of securities and easier manipulation of their prices and bear very high risk liquidity is a major factor in buying back the closure of of sudden price movements of derivative instruments. The the position. In this connection, the BSE-Sofia believes realization of this objective is highly dependent on other that it is not justified that the same criteria for liquidity factors such as availability of effective clearing and liquidity is applied to both types of transactions. This largely and therefore it represents a long-term goal for a period corresponds to international practice by a number of conversion. Also, the Exchange will explore the possibility requirements for capital market instruments which only of providing the market with the necessary data on trade in respect of short selling and margin purchases are left government securities, which in turn will make possible to the discretion of the financial institutions themselves. to start trading interest rate futures. For this purpose, a marketing objective is necessary for the coordination with Practical problems in relation to the activities of mar- the policies of the BNB and the MoF in this area. ket-makers Deadline: The first quarter of 2011 Since it is possible within the scope of his activities that Partners: Financial Supervision Commission, a market-maker accidentally steps out of his short posi- Ministry of Finance, Bulgarian National Bank, tion without actually having a similar design, it would be Central Depository, BALIP, ABB, BAAMC necessary in such a case to take the existing opportu-

Issue 108, April 2010 11 Bulgaria

2. Improving the infrastructure of the market ■■Over-border Clearing and Settlement In the longer term, the Exchange will assist the Central This task is mainly associated with joint actions with the Cen- Depository to make the changes on the level of clearing and tral Depository and other market institutions to establish an settlement, aimed at creating links between individual deposi- improvement of the following services: tory institutions. The Exchange considers it as appropriate to give local participants in the CD the opportunity to complete ■■ Clearing on the national level their transactions concluded with other instruments on other Exchange will support the work of the CD to improve the markets and vice versa. Deals on the BSE-Sofia can be com- clearing activities at a national level, as this is crucial both pleted in other custodians. This process is a European prac- for implementation of margin purchases and short sales tice and its realization is possible only if it is associated with and the introduction of new financial instruments on the lower costs for investors. With respect to this specific task, Bulgarian capital market. Also, regarding the presence of deadlines cannot be determined because it requires constant respective technological capabilities, BSE-Sofia believes it action in accordance with the ever-changing atmosphere of is a priority regulation of the so-called non-clearing mem- the pan-European level in the clearing and settlement. bership, giving exchange members the opportunity to end their transactions in other (clearing) Article on CD. ■■Construction of a back-up centre This is also the preferred way to access foreign market In order to ensure continuity, BSE-Sofia will start project intermediaries. In this sense, the BSE-Sofia will support establishment of an independent reserve centre, through the ongoing work of the CD without determining its own which it can minimize risk of equipment failure affecting the current time. proper conduct of trading sessions. Deadline: fourth quarter of 2010 ■■Settlement Guarantee Fund Central Depository so far is the institution which carries out clearing and settlement of transactions of financial instru- Impact on investors ments traded on the Exchange, as well as to the possible The success of these goals has a direct impact on investors. extension clearing functions of the institution, BSE-Sofia will initiate consultations between participants in the Bulgarian capital market on the possibility of converting Guarantee Fund to the structure of the clearing institution at a later stage. The possibility to implement at this stage may not be strongly indicated, as far as it is associated with changes in the POSA in respect of the guarantee fund of the CD. Also, one should carefully analyze the need for central contractors, in whatever form it ensures the completion of the concluded transactions on the exchange and its effect on the price of the service.

Written and edited by: Veselin Stefanov Manager Sales & Relationship Management, UniCredit Bulbank AD Tel. + 359 2 93 20 112 · [email protected]

Issue 108, April 2010 12

Croatia

Zlatna Kuna 2009 awards presented Market Capitalisation HRK 178.2bn The Croatian Chamber of Commerce (HGK) presented at YTD Dev. of Market Capitalisation 3.9% the ceremony the Zlatna Kuna award for the business year 2009, as recognition for the success in business and con- Number of SE Transactions p.m. 27,862 tributions to the Croatian economy companies, banks and YTD Dev. of SE Transactions -5.7% insurance companies. The award has been established in SE Turnover (Zagreb SE) HRK 672.0mn 1997 as a support for projects aimed at creating high-quality Monthly Index Performance (Crobex/ZSE) -3.0% Croatian products and their positive image on the domestic GDP per Capita (2010 in EUR) 10,192 and international markets. GDP Real 2010 (Change against prev. year in %) -1.0 According to the Croatian Chamber of Commerce (HGK), 3-Month Money Market Rate (current in %) 1.3 Koncar – Power Transformers is the best Croatian com- Inflation in 2010 (yearly average in %) 1.5 pany, was presented with the Zlatna Kuna award for business EUR/HRK 7.26 excellence in 2009. In the category of medium-sized compa- Upcoming Holidays none nies, the Zlatna kuna award was presented to Geofoto from Zagreb, which is providing services in geodesy and geoin-

Source: Bank Austria, National Statistics formatics. The best small company is Nexus from Cerna, a company for machine processing and metal production parts for welding machines, machines and robots for the Actual 38 Day moving average 200 Day moving average 2600 automotive industry.

2400 Privredna banka Zagreb was awarded as the best bank and 2200 insurance Uniqa Zagreb as the best insurance company. 2000 Zlatna kuna for innovation was presented to Branimir Ruzo- 1800 jcic from TEMA for electric engine with multilayer permanent 1600 magnets embedded in rotor laminate, and Vjekoslav Majetic, 1400 founder and owner of Dok-Ing for small mining electric bull-

1200 dozers. Jul Apr Okt Jun Jan Mai Mrz Mrz Feb Aug Sep Nov Dez The Lifetime Achievement Award was presented to Roman Bosco, professor at the Faculty of Agriculture in Zagreb, for Source: Thomson Datastream a significant contribution to the scientific development of the mushroom-growing areas and flesh technology.

Impact on investors For information purpose only.

Abolishment of 2% crisis tax rate The two percent tax on incomes ranging from HRK 3,000 to HRK 6,000 will be abolished as of 1 July 2010. This was announced by Prime Minister Jadranka Kosor at a government session. She continues by saying that government wants to give additional stimulus to spending and to boost optimism in the country. She thanked all citizens for showing their understanding at the time when the government made “the tough decision” to impose the crisis tax. The PM said that the government would continue to carry out its programme consistently, again highlighting the three main pillars of its work – aid to the economic sector, an uncompromising fight against corruption, and completion of EU membership

Issue 108, April 2010 13 Croatia

negotiations; so that Croatia could sign an accession treaty culture. In 2008, Croatia had more that 270 different types early next year. The law on special tax on salaries, pensions of grants, but reduced them to 39 types in 2009. The new and other receipts, imposed last summer as part of aus- concept simplifies the grant system by dividing grant types terity measures to counter the economic crisis, introduced into eight groups. Mikolcic said that the IPARD plan, the EU two tax rates – 2% on incomes ranging from HRK 3,000 to pre-accession IPA Agriculture and Rural Development Plan HRK 6,000 and 4% on incomes exceeding HRK 6,000. The for Croatia, started with EUR 26 mn. The financial fund for tax is calculated on the entire income and it is applied only agriculture will be EUR 360 mn and EUR 210 mn for rural to Croatian residents, both natural and legal persons. development in 2012, under IPARD.

The Croatian Employers’ Association (HUP) and leaders of Finance Minister Ivan Suker announced at a meeting of the trade union federations have welcomed the announcement Economic and Social Council that the government would by Prime Minister on annulling the 2% crisis tax on monthly soon present “Model C” measures to companies that had incomes ranging from HRK 3,000 to HRK 6,000. been in financial trouble for years. Each of those companies has specific problems that need to be addressed. Suker said it was important that Model C is supported by all three Impact on investors social partners, adding that there were a lot of companies For information purpose only. that would have been operating at a profit today had they had the courage and strength to restructure in time. Government new stimulations The government prepared HRK 326 mn packages of Impact on investors incentives for small and medium-sized entrepreneurship Government stimulations are aimed at helping strengthen this year. The package consists of six areas of incentives small and medium-sized entrepreneurship, reform of the – competitions and inventions (HRK 108.4 mn), entrepre- agricultural grants system and recovery of companies in neurial infrastructure (HRK 80.6 mn), subventions for interest financial troubles. rates on enterprise loans (HRK 55.5 mn), education (nearly HRK 6 mn), trades and crafts (HRK 18.7 mn) and EU SME projects (HRK 38.7 mn). Economy Minister Djuro Popoijac Government issues new bonds said the package consisted of 18 projects, such as women The Croatian government issued a new ten-year bond in in entrepreneurship, young entrepreneurs, and promoting the amount of HRK 3.5 bn and EUR 350 mn in the kuna competition through inventions. equivalent on the domestic market. The annual interest rate is 6.75% for the kuna bonds and 6.50% for the euro bonds The government also endorsed a document on the reform of issued in the kuna equivalent. the agricultural grants system in Croatia in 2010-2013. The document is expected to be passed into act by this summer, The bond issue is used to reschedule and change the debt which way Croatia will have met one of the benchmarks for structure by replacing short-term debts with long-term ones. the negotiating chapter Agricultural and Rural Development The new bond fall is due on 5 March 2010. within its European Union membership talks. Agriculture Ministry State Secretary Stjepan Mikolcic said this concept Impact on investors envisaged the further reduction of types of grants in agri- New bond on Croatian market.

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

Issue 108, April 2010 14

Czech Republic

The CNB comments on the February 2010 inflation Market Capitalisation CZK 1.3trn figures YTD Dev. of Market Capitalisation 1.4% Inflation comes in below the CNB forecast in February According to figures released on Thursday 9 March 2010, Number of SE Transactions p.m. n.a. the price level increased by 0.6% year on year in Febru- YTD Dev. of SE Transactions n.a. ary 2010. Compared to January, inflation thus has declined SE Turnover (Prague SE) CZK 65.8bn slightly further and has moved below the lower boundary of Monthly Index Performance (PX) -3.2% the tolerance band set around the CNB’s new 2% target GDP per Capita (2010 in EUR) 13,679 valid since the beginning of 2010. Monetary-policy relevant GDP Real 2010 (Change against prev. year in %) 1.6 inflation, i.e. inflation adjusted for the first-round effects of changes to indirect taxes, was -0.4% in February. 3-Month Money Market Rate (current in %) 1.26 Inflation in 2010 (yearly average in %) 1.5 Annual headline inflation was 0.3 percentage points lower EUR/CZK 25.69 than the current CNB forecast in February 2010. Part of Upcoming Holidays none this deviation was due to the developments in January. The February deviation from the forecast was due mainly to lower

Source: Bank Austria, National Statistics adjusted inflation excluding fuels. By contrast, fuel and food prices were higher than expected. The prediction of regulated prices and the effects of changes to indirect taxes roughly Actual 38 Day moving average 200 Day moving average 1300 materialized.

1200 Despite the deviation from the forecast, the price develop- 1100 ments observed so far in the first quarter are broadly in line 1000 with the message of the current forecast. According to this

900 forecast, headline inflation should rise in the course of 2010 and, due to the effect of the tax changes, get slightly above 800 the CNB’s target of 2% in the second half of the year. At the 700 monetary policy horizon, i.e. in 2011 H1, headline inflation

600 will be close to the inflation target. Monetary-policy relevant

Jul inflation will be below headline inflation from the start of this Apr Okt Jan Mai Jun Mrz Mrz Feb Aug Sep Nov Dez year (owing to indirect tax changes). It will then approach the Source: Thomson Datastream CNB’s target from below over the monetary policy horizon.

Source: CNB

Impact on investors For information purposes only.

Positive Czech Banking Sector Stress Test Results The Czech banking sector remains resilient to shocks arising from potentially adverse macroeconomic developments in 2010-2011 according to stress tests conducted by the Czech National Bank (CNB) in February 2010. Not even in an extreme and highly implausible economic deterioration scenario does the capital adequacy of the entire sector fall below the regulatory minimum of 8%, affirms the stress test results published by the CNB.

“Foreign observers are surprised to see how little the domestic banking sector has been affected so far by the global financial crisis and the subsequent recession. From our perspective it is important that it remains profit-making and

Issue 108, April 2010 15 Czech Republic

enters the period ahead well-capitalized,” said Jan Frait, the quacy of all banks having their registered offices in the Czech CNB’s main financial stability expert. “According to the CNB’s Republic to the required minimum than suggested by the last analyses, it should be able to remain resilient to potential published bank stress tests results in June 2009-Financial shocks in the coming two years, despite the expected weak Stability Report. According to the current stress tests, the economic growth,” he added. increase in regulatory capital necessary in the most pes- simistic scenario is estimated at roughly CZK 13 bn, i.e. no For the next two years, the risks to financial stability remain more than 5% of the existing bank regulatory capital and less high in the Czech Republic. A renewed recession in Europe is than 0.5% of GDP. In last year’s Financial Stability Report, the major risk. A potential loss of financial market confidence the capital injections necessary in the worst stress scenario in governments’ ability to finance growing national debts is were calculated at CZK 15.7 bn. another significant risk arising from the current fiscal trends in some European countries. The macroeconomic stress The capital adequacy of the banking sector stood at 13.41% scenarios chosen capture these risks. According to these at the end of November 2009 with none of the banks record- stress scenarios, rising NPL losses and weaker operating ing a figure lower than 10%. profit stemming from potential adverse macroeconomic developments in the Czech Republic could put some banks The actual stress test results are available on the CNB website: into a loss-making situation. http://www.cnb.cz/m2export/sites/www.cnb.cz/en/financial_ Although the sector as a whole maintains its capital adequacy stability/stress_testing/2010/stress_test_results_2009_q4.pdf above the regulatory threshold, this indicator could drop Source: CNB below 8% in several banks owing to losses, and the share- holders of such banks would be forced to increase their Impact on investors capital. Even in the worst scenario, however, smaller capital Positive prediction for the Czech banking sector. injections would be needed to make up the capital ade-

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

Issue 108, April 2010 16

Hungary

Economic Research Institute Raised Hungary’s GDP Market Capitalisation HUF 17,869.6bn Projection for 2010 YTD Dev. of Market Capitalisation 2.2% Economic Research Institute Kopint-Tarki has raised its projection for Hungary’s economic growth in 2010 to 0.8% from Number of SE Transactions p.m. 254,776 a forecast of 0% in December 2009. Kopint-Tarki put GDP YTD Dev. of SE Transactions 21.8% growth in 2011 at 3.0%. SE Turnover (Budapest SE) HUF 657,992mn Monthly Index Performance (BUX) -3.0% According to the research institute, household consumption GDP per Capita (2010 in EUR) 9,892 fell by 0.5% in 2010 after plunging by 6.7% in 2009. Real wages are set to rise by 3.5% due to taxation changes, up GDP Real 2010 (Change against prev. year in %) -0.3 from Kopint-Tarki’s earlier projection of 1.5%. The think tank 3-Month Money Market Rate (current in %) 5.43 said that Hungary’s domestic consumption would stagnate Inflation in 2010 (yearly average in %) 3.8 and industrial output would grow by 4.0%. Household sav- EUR/HUF 267,86 ings are expected to rise to 4.6% of GDP in 2010 from 3.2% Upcoming Holidays none in 2009, moving close to the 5-6% EU average.

Kopint-Tarki forecasts the average annual inflation by 4.2% Source: Bank Austria, National Statistics this year and by 3.2% next year. It sees that the base rate of the National Bank of Hungary could fall to 4.50-5.00% by Actual 38 Day moving average 200 Day moving average 25000 December 2010.

22500 Impact on investors 20000 The market expectations of the Economic Research 17500 Institute Kopint-Tarki for 2010 and 2011 in Hungary are 15000 summarized above.

12500

10000 Turquoise Extend Trading Service to Hungarian

7500 Securities

Jul Turquoise and EuroCCP have recently announced to have Apr Okt Jun Jan Mai Mrz Mrz Feb Aug Sep Nov Dez expanded their respective trading and clearing services into Source: Thomson Datastream the Hungarian market. The move makes Turquoise the first multilateral trading facility to offer trading and EuroCCP the first pan-European CCP to offer clearing services in 12 com- ponents of the main Hungarian BUX index.

Turquoise offers trading in the Hungarian securities cleared through EuroCCP as of 26 February 2010.

Impact on investors Hungarian securities may have been traded also on Turquoise since the end of February 2010.

Written and edited by Zsanett Lencsés Senior Sales & Relationship Manager Tel. +36 1 301 1920 · [email protected]

Issue 108, April 2010 17

Kazakhstan

Traded value falls by 20.5% year-on-year, reaches Market Capitalisation KZT 13,069.7bn KZT 4.1 trn (USD 27.7 bn) YTD Dev. of Market Capitalisation 0.2% In January and February 2010 value traded on Kazakhstan Stock Exchange (KASE) in all market sectors reached Number of SE Transactions p.m. 1,102 KZT 4,095.6 bn (USD 27,693.8 mn) and fell on a year-on- YTD Dev. of SE Transactions -10.0% year basis by 20.5% (28.5% in dollar terms). SE Turnover (KASE) KZT 9.9bn Monthly Index Performance (KASE) 1,864.2 As compared with the previous two-month period (Novem- GDP per Capita (2010 in EUR) 4,499 ber-December 2009) traded value fell by 4.9% (4.1% in dollar terms). GDP Real 2010 (Change against prev. year in %) -25.0 3-Month Money Market Rate (current in %) 7.0 Impact on investors Inflation in 2010 (yearly average in %) 7.4 For information purposes only. EUR/KZT 201,34 Upcoming Holidays none Repo transaction market value falls by 27.2% year-

Source: Bank Austria, National Statistics on-year, reaches KZT 1.8 trn (USD 12.5 bn) In January and February 2010 repo transaction market value on Kazakhstan Stock Exchange (KASE) reached Actual 38 Day moving average 200 Day moving average 2100 KZT 1,846.3 bn (USD 12,485.1 mn) and fell on a year-on-

1900 year basis 27.2% (35.0% in dollar terms).

1700 As compared with the previous two-month period (Novem- 1500 ber-December 2009) traded value grew by 34.0% (35.1% 1300 in dollar terms). 1100 Impact on investors 900 For information purposes only. 700

500 Jul Apr Okt Mai Jun Jan Mrz Mrz Feb Aug Sep Nov Dez GS traded value grows by 183.3% year-on-year, reaches KZT 284.3 bn (USD 1,923.2 mn) Source: Bloomberg In January and February 2010 government securities (GS) value traded on Kazakhstan Stock Exchange (KASE)* reached KZT 284.3 bn (USD 1,923.2 mn) and grew on a year-on-year basis by 183.3% (159.7% in dollar terms).

As compared with the previous two-month period (Novem- ber-December 2009) traded value fell by 11.9 % (11.2 % in dollar terms).

Impact on investors Following information shows changes of the business activity in the Kazakhstan market from the beginning of the year 2010.

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

Issue 108, April 2010 18

Kyrgyzstan

In February 2010 KSE trades volume decreased and made Market Capitalisation n.a. up KGS 0.15 bn ($3.35 mn) with 154 trades provided. YTD Dev. of Market Capitalisation n.a. Trades volume on JSC “Kyrgyz Stock Exchange” for Febru- Number of SE Transactions p.m. 154 ary 2010 made up KGS 19.14 mn ($0.43 mn) with 81 trades YTD Dev. of SE Transactions -62.9% provided. SE Turnover (KSE) KGS 154.5mn Monthly Index Performance (KSE) n.a. Trades volume on JSC “Kyrgyzstan Stock Exchange – BTC” for February 2010 made up KGS 2.079 mn ($ 46492) with GDP per Capita (2010 in EUR) 1,457.19 71 trades provided. GDP Real 2010 (Change against prev. year in %) 2.3 3-Month Money Market Rate (current in %) n.a. Trades volume on JSC “Central Asian Stock Exchange” for Inflation in 2010 (yearly average in %) n.a. February 2010 made up KGS 133.32 mn ($2.3 mn) with EUR/KGS 61.35 2 trades provided. Upcoming Holidays none Impact on investors

Source: Bank Austria, National Statistics Following information shows changes of the business activity in the Kyrgyzstan market in February 2010.

Written and edited by: Zhanna Mussakhanova Leading Specialist, Trade Settlement Unit. Tel. +7 727 258 30 15 · [email protected]

Issue 108, April 2010 19

Poland

The Warsaw bourse becomes a “Recognised Stock Market Capitalisation PLN 411.3bn Exchange” YTD Dev. of Market Capitalisation -3.0% The Warsaw Stock Exchange (WSE) received the “Recog- nised Stock Exchange” designation from HM Revenue and Number of SE Transactions p.m. 840,342 Customs (HMRC). The designation awarded to the WSE YTD Dev. of SE Transactions -4.0% Main Floor and the retail regulated segment of Catalyst Bond SE Turnover (WSE) PLN 15.2bn Market will make these markets more attractive and acces- Monthly Index Performance (WIG20) -5.2% sible for UK-based investors. Monthly Index Performance (WIG) -3.2% Being the largest stock exchange in Central and Eastern GDP per Capita (2010 in EUR) 8,885 Europe (in terms of market capitalisation and equity trading GDP Real 2010 (Change against prev. year in %) 2.6 value), the Warsaw bourse is actively building its international 3-Month Money Market Rate (current in %) 4.01 reputation. More than a third of equity trading on the WSE Inflation in 2010 (yearly average in %) 2.8 Main Floor already originates outside of Poland. EUR/PLN 3.88 The “Recognised Stock Exchange” designation awarded by Upcoming Holidays 5 April HMRC offers UK-based investors trading in securities listed on the Warsaw bourse the possibility to profit from a vari- Source: Bank Austria, National Statistics ety of tax incentives. The most important one is the income tax exemption on funds invested in securities that meet the Actual 38 Day moving average 200 Day moving average 2500 HMRC definition of ‘listed’ on a recognised stock exchange through individual savings accounts (ISA). Institutional inves- 2250 tors trading on a recognised stock exchange may lower their taxes by means of assets amortization. 2000 All securities available on the WSE Main Floor as well as on 1750 regulated retail segment of Catalyst Bond Market meet the

1500 HMRC interpretation of ‘listed’ instruments. UK investors may choose from close to 380 companies, a variety of deriva- 1250 tives, structured products as well as municipal, corporate Jul Okt Apr Mai Jun Jan Mrz Mrz and Polish treasury bonds. The Warsaw bourse joined other Feb Nov Dez Aug Sep leading European exchanges that have already been recognised by HMRC, e.g.: NYSE Euronext, Deutsche Boerse Source: Thomson Datastream and Wiener Boerse.

Source: The Warsaw Stock Exchange

Impact on Investors The “Recognised Stock Exchange” designation may attract Polish market for UK-based investors.

Launch of the Target2Securities National Users Group The National Users Group (NUG PL) – Polish task force assessing the feasibility and procedure of connecting the Polish market to Target2Securities, held its first meeting in March. The session organised by the National Depository for Securities (NDS) in partnership with the National Bank of Poland was attended by representatives of banks and brokerage houses, market organisations, the Warsaw Stock Exchange, the Ministry of Finance, and the Polish Financial Supervision Authority. One of the first tasks of NUG PL is to

Issue 108, April 2010 20 Poland

draw up a list of barriers and risks related to the accession of NDS and Polish entities to T2S. For this purpose, NDS will carry out broad consultations with participants and institutions of the Polish capital market.

The Target2Securities IT platform is being developed by initiative of the euro-area central banks in cooperation with the central securities depositories of European countries. The mission of T2S is to facilitate and reduce the cost of trans- border settlement of transactions in securities based on the DVP (delivery vs. payment) principle in central bank money. In technical terms, the project consists in outsourcing of settlement functions to the T2S platform.

Source: The National Depository for Securities

Impact on Investors For information purposes only.

Written and edited by: Marek Cioroch Relationship Manager Tel. +48 22 5245862 · [email protected]

Issue 108, April 2010 21

Romania

Economy Market Capitalisation RON 85.6bn Annual inflation rates below the analysts’ expectations YTD Dev. of Market Capitalisation 210.6% The annual rate of inflation in Romania fell in February to Number of SE Transactions p.m. 96,101 4.49% from 5.20% recorded in January, after consumption YTD Dev. of SE Transactions 14.6% prices went up 0.20% against the previous month, according SE Turnover (Bucharest SE) RON 1,460.4mn to the Romanian National Statistics Agency (INS). Economists Monthly Index Performance (BET/BSE) 5.2% estimated the annual inflation to 4.6% in February, based on GDP per Capita (2010 in EUR) 5,923 a 0.3% increase in consumerist prices. GDP Real 2010 (Change against prev. year in %) 0.4 In regard to the non-food goods, the most important increases 3-Month Money Market Rate (current in %) 6.27 in prices were applied to heating (up 1.83%), books, news- Inflation in 2010 (yearly average in %) 4.0 papers, magazines (+1.35%), tobacco and cigarettes (up EUR/RON 4.10 0.60%). Meanwhile cars and spares dropped in price by Upcoming Holidays none 0.15%. The services that now cost more are urban transport (up Source: Bank Austria, National Statistics 1.39%), water, sewage, sanitation (+0.44%) and inter-city road transport, up 0.34%. Actual 38 Day moving average 200 Day moving average 5650 At the same time, telecoms are 0.68% cheaper and air trans- 5000 port costs 0.67% less.

4350 The Romanian Central Bank (BNR) aims a 3.5% inflation rate

3700 this year, plus/minus one percentage, but forecasts that the inflation will read 4.5% by the end of the year. 3050

2400 Impact on investors NBR inflation rate target. 1750 Jul Apr Okt Jun Jan Mai Mrz Mrz Feb Aug Sep Nov Dez Fitch Ratings awarded BB+ to Romania’s Eurobonds Source: Thomson Datastream Fitch Ratings awarded BB+ to the Eurobonds issue that expires every five years, worth of EUR 1 bn. It was launched on 11 March, by the Romanian Government, as the financial evaluation agency report shows. This rating is similar to that Romania received for long term foreign currency debt.

On 11 March Romania launched a Eurobonds issue worth of EUR 1 bn, with a five-year maturity and a 5% coupon. The issue was oversubscribed approximately five times: the first was paid above the index of the market (mid-swap), amount- ing to 268 base points at the five-year maturity.

On 2 February Fitch Ratings improved Romania’s rating from “negative” to “stable” and confirmed BB+ and BB- for long term debts in foreign and national currencies. At the same time, the agency confirmed the country limit and the rating for short term debt in foreign currency to BBB and B, respectively.

Impact on investors Fitch rating for the Romanian Government Eurobonds.

Issue 108, April 2010 22 Romania

The regulation no. 5 issued by CNVM was published in the Official Gazette On 16 March 2010 the regulation no. 5/2010 issued by CNVM was published in the Official Gazette. The regulation approved the global accounts system by all market participants. Since now the global accounts were used only by custodian banks.

BSE and Central Depository have to provide CNVM in a 60 days period, with the amendments of the current regulations in respect with the global accounts system applicability.

Impact on investors Global accounts system to be used in the Romanian capital market within a 3-months-period.

Written and edited by: Andreea Albu Global Securities Services Account Manager Tel. +40 21 200 26 78 · [email protected]

Issue 108, April 2010 23

Russia

Central Bank Decreased the Refinancing Rate Market Capitalisation RUB 16.8trn The refinancing rate has been reduced to 8.5% according YTD Dev. of Market Capitalisation 1.3% to the decision of the Central Bank starting from 24 Febru- ary 2010. Number of SE Transactions p.m. (MICEX) 8,850,564 YTD Dev. of SE Transactions -0.2% Impact on investors: Reducing of refinancing rate will stimu- SE Turnover (MICEX) RUB 4.159trn late credit activity of Russian banks. Monthly Index Performance (RTS) 4.8% GDP per Capita (2010 in EUR) 573 Impact on investors GDP Real 2010 (Change against prev. year in %) -11.86 For information purposes only. 3-Month Money Market Rate (current in %) 4.66 Inflation in 2010 (yearly average in %) 0.9 FFMS started to publish information of injunctions EUR/RUB 0.02 issued in the name of market players Upcoming Holidays none On 26 February 2010 Federal Financial Market Services (FFMS) started to publish information of injunctions issued

Source: Bank Austria, National Statistics in the name of market players on the FFMS web-site. Pre- viously such information was available only in regards to Pension Funds and Registrars. Currently FFMS reported the Actual 38 Day moving average 200 Day moving average 1700 total or partial operations injunctions of 10 companies, mostly brokers and trustees. 1500

1300 Impact on investors 1100 This measure will allow to increase market transparency and discipline. 900

700 FFMS published the Order draft on the Foreign 500 Securities registration and placement in Russia Jul Apr Okt Jan Mai Jun Mrz Mrz

Feb Federal Financial Market Services (FFMS) published the Order Aug Sep Nov Dez draft on the Foreign Securities registration and placement in Source: Thomson Datastream Russia. FFMS considers the foreign securities prospectus registration under the following conditions:

1. ISIN and CFI codes are allocated to the Security; 2. Issuer is:

■■Originated in the country - member of Organization for Economic Co-operation and Development (OECD), Fi- nancial Action Task Force on Money Laundering (FATF) and/or Committee of Experts on the Evaluation of Anti- Money Laundering Measures and the Financing of Ter- rorism of the Council of Europe (MONEYVAL),

■■Originated in the country which signed agreement with FFMS;

■■International organization included in the list approved by the Government of Russian Federation;

■■Foreign country – member of Organization for Econom- ic Co-operation and Development (OECD), Financial Action Task Force on Money Laundering (FATF) and/or

Issue 108, April 2010 24 Russia

Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism of the Council of Europe (MONEYVAL).

The Order draft applies to the registration of the foreign securities without involvement of Stock exchanges and contains the detailed list of required documents and registration process steps.

Impact on investors This document will clarify the order of the foreign securities registration and placement in Russia.

RTS launches unified execution on FORTS and RTS Standard From 12 March 2010 Russian Trading System RTS will launch unified execution of futures on stocks on FORTS and RTS Standard markets. Unified execution is the technology for simultaneous execution of deliverable futures contracts on securities on RTS FORTS market and equities transactions on the RTS Standard market allowing market participants to net liabilities on both the derivative and stock markets. The process of switching to this new technology will take several stages.

Impact on investors The unified execution will reduce expenses associated with realization of arbitrage strategies and will decrease opera- tional risks during delivery execution. This new technology will also improve trading efficiency on both the stock and derivatives markets. The introduction of the unified execution will allow market participants to decrease collateral on futures contracts prior to delivery.

Written and edited by: Alexander Nazarov Director, Global Securities Services Tel. +7 495 258-7349 · [email protected]

Issue 108, April 2010 25

Serbia

Vienna Initiative Members Allowed to Cut Exposure Market Capitalisation RSD 880.0bn to Serbia YTD Dev. of Market Capitalisation 0.6% According to the official press release, the National Bank of Serbia (NBS) has allowed banks on the market, members of Number of SE Transactions p.m. 4,566 ‘’Vienna initiative’’, to cut exposure to the Serbian market to YTD Dev. of SE Transactions 31.0% 80% of the level agreed last April 2009 upon conclusion of SE Turnover (Belgrade SE) RSD 1.97bn agreement in Vienna. At the same time, the agreed benefits Monthly Index Performance (Belex 15) 4.1% to participating banks remained active and unchanged. GDP per Capita (2010 in EUR) 4,214 The NBS decision is a result of agreement between biggest GDP Real 2010 (Change against prev. year in %) -0.5 foreign banks in Serbian market and international lending 3-Month Money Market Rate (current in %) 9.89 institutions, that the Serbian market conditions allow gradual Inflation in 2010 (yearly average in %) 4.9 lowering of their market exposure. EUR/RSD 98.30 Upcoming Holidays 2, 5 April The so called ‘’Vienna initiative’’ was launched in April 2009, upon agreement between 10 largest foreign banks operating on Serbian market and reputable international lenders, Source: Bank Austria, National Statistics supported by the International Monetary Fund, to keep the exposure to the Serbian market at the same level as at the 1000 Actual 38 Day moving average 200 Day moving average end of 2008 and give support to their subsidiaries present 900 on the market, during 2009.

800 Despite the decision to allow exposure decrease, the Gov- 700 ernor of the NBS Mr. Radovan Jelasic stated that he does

600 not expect the banks, members of ‘’Vienna initiative’’, to lower the exposure in 2010, but to increase it as already 500 done in 2009. 400

300 Impact on investors

Jul ‘’Vienna initiative’’ members granted market exposure Apr Okt Jun Jan Mai Mrz Mrz Feb Aug Sep Nov Dez decrease but in fact expected to boost it in 2010, bring- Source: Bloomberg ing positive outlook for 2010 to investors interested in the Serbian market.

Central Bank Approves Reserves Reduction According to the official press release, the monetary board of the National Bank of Serbia (NBS) has decided to cut mandatory bank reserve requirements from 40% and 45% to 25% for foreign currency base and from 10% to 5% for local currency RSD base. This decision also cuts previously granted exceptions to which previously existing rules did not apply.

Local banks will not comply with new rules instantly, but will gradually apply new reserve requirements during 2010 to prevent sudden withdrawing of foreign currency funds from the country. The NBS Governor Mr. Radovan Jelasic noted that such moves were agreed with the International Monetary Fund (IMF). Any additional remaining funds after the 2010 will be reimbursed to the banks until April 2011 in three monthly installments, starting from February 2011. The NBS further noted that their decision predicts a one-year adjustment

Issue 108, April 2010 26 Serbia

period of compliance with the new reserve requirement rates. The decision will come into force on 18 March 2010.

According to the same press release, the goal of the NBS decision is to make transparent and uniform reserve requirements on the market and to encourage local banks to increase cross border borrowing, local lending and to increase savings deposits.

Impact on investors The NBS approved gradual mandatory bank reserves cuts, loosening the Serbian market conditions.

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

Issue 108, April 2010 27

Slovak Republic

Cdcp Statistics 2009 Market Capitalisation EUR 21.7bn The Central Securities Depository of the Slovak Republic YTD Dev. of Market Capitalisation -8.8% (CDCP) has published a yearly statistics for 2009. We sum- marize the main developments. Number of SE Transactions p.m. 481.0 YTD Dev. of SE Transactions 5.5% Registered Issues of Securities SE Turnover (Bratislava SE) EUR 1.0bn By 31 December 2009 the total nominal volume of book- Monthly Index Performance (SAX/BSSE) -3.8% entered securities registered in client’s accounts was GDP per Capita (2010 in EUR) 12,309 EUR 61.11 bn out of which the highest share were shares in the total volume of EUR 38.88 bn. The number of registered GDP Real 2010 (Change against prev. year in %) 3.1 share issues was 2,158. 3-Month Money Market Rate (current in %) n.a. Inflation in 2010 (yearly average in %) 1.3 The volume of debt instruments registered with client EUR/SKK 30.13 accounts was EUR 21.859 bn; number of debt issues was Upcoming Holidays 2. 5 April 363. The volume of Agriculture Cooperatives´ certificates registered with client accounts was EUR 0.35 bn, number of these issues was 563. The number of Fund Certificates Source: Bank Austria, National Statistics registered with CSD was 17 at the volume of EUR 5.51 mn.

Actual 38 Day moving average 200 Day moving average 400 In comparison to 2008 the total nominal volume of book- entered securities increased by EUR 3.38 bn (+5,85 % y/y) 375 mainly thanks to registration of high volume of two Treasury 350 Bills issues.

325 During the year 2009 new issues of securities in total volume 300 of EUR 7.72 bn were issued in 132 new issues. Bonds and 275 T-bills brought new volume of EUR 7.32 bn and 54 new

250 issues. Newly registered shares represented the volume of EUR 0.4 bn and 75 new issues. 225 Jul Apr Okt Jan Mai Jun Mrz Mrz Feb Aug Sep Nov Dez During the year 2009 a total of 363 issues in the volume of EUR 6.01 bn were deregistered. Out of which 208 issues Source: Thomson Datastream were shares, 72 issues were debt securities and the rest were certificates of Agricultural Cooperatives and Funds.

Other Developments Number of registered issuers of book entered securities decreased in 2009 in comparison to 2008 by 212 issuers (-9.46 % y/y) and reached 2028 issuers. At the same time the number of registered issuers of shares issued in physical form increased by 116 (+3.59% y/y) and reached number of 3350 issuers.

Against Payment Transactions The volume of securities settled against payment was EUR 9.088 bn in 2009. The number of against payment (AP) transactions was 3545. The average daily number of AP transactions was 14 and the average daily transacted volume was EUR 35.5 mn. In comparison to 2008 the number of transactions increased by 11.37% and the volume by EUR 5.571 bn (+158.44 y/y).

Issue 108, April 2010 28 Slovak Republic

Free of Payment Transactions Equity securities of local companies, still neglected by inves- The nominal volume of securities settled free of payment was tors, were bought and sold in 367 transactions, in a financial EUR 14.89 bn in 2009. Average daily volume of transacted volume of EUR 278,643. In comparison with the previous securities was EUR 58.19 mn. The total number of transac- month, it is a decline in the amount of traded securities tions was 48,264 with daily average of 189 transactions. (-46.26%) as well as in the achieved volume (-21.48%). In comparison to 2008 the volume of free payment transac- The number of concluded transactions, on the other hand, tions decreased by EUR 13.46 bn (-47.47 % y/y). At the increased in the same comparison by 63.11%. same time the number of transactions increased by 34,949 transactions (+262.48% y/y). A total of 799 transactions, in a financial volume of EUR 2.06 bn, have been cumulatively concluded on the BSSE since the start of the year 2010. It represents a 35.2% Impact on investors decrease against the same period of last year. Overview of securities issues registered at CDCP and transactions settled in 2009. Transactions concluded by non-residents in February 2010 accounted for 34.72% of the total trading volume. Bratislava Stock Exchange Trading in February As of the last trading day of the month of February 2010, In February 2010, members of the Bratislava Stock Exchange the market capitalisation of equity securities increased on a (BSSE) concluded 481 transactions, in a financial volume month-on-previous-month basis by 0.34% to EUR 3.49 bn. of EUR 1.04 bn. In comparison with the previous month it The market capitalisation of bonds totalled EUR 18.21 bn, represents a 2.50% increase in achieved financial volume representing a 7.59% decline on a month-on-previous-month and a 51.26% growth in the number of concluded transac- basis. tions. On a year-on-year basis, the achieved volume dropped by 22.85%. Similar to previous months, negotiated deals The SAX index ended the month of February 2010 at 233.00 again dominated over electronic order book (i.e. price-set- points, representing a 3.77% decline on a month-on-previ- ting) transactions. Their percentage share in the total trading ous-month basis and a 29.79% decline year on year. volume surpassed 99.47%. A total of 121 negotiated deals in a volume of EUR 1.04 bn were concluded in February 2010, as opposed to 360 electronic order book transactions in a Impact on investors financial volume of EUR 5.57 mn. BSSE performance in February 2010.

Bond transactions accounted for as much as 99.97% of the achieved volume. A total of 114 bond transactions were concluded in the period under review, in which 787,964,079 units of securities were traded in a volume exceeding EUR 1.04 bn. Thus the volume and the number of concluded transactions rose on a month-on-previous-month basis by 2.51% and 22.58%, respectively. Compared with the same period of the year 2009, however, the achieved volume fell by 22.85% and the number of concluded transactions went down as much as 30.91%.

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

Issue 108, April 2010 29

Slovenia

Government Amends Law on IMF Membership Market Capitalisation EUR 20,951mn The government adopted on Thursday, 11 February 2010 YTD Dev. of Market Capitalisation 6.5% amendments to the act on Slovenia’s membership in the International Monetary Fund (IMF), which regulates anew the Number of SE Transactions p.m. 10,560 relations between Slovenia’s central bank and the govern- YTD Dev. of SE Transactions -17.6% ment in line with the European law. SE Turnover (Ljubljana SE) EUR 40.3mn The changes introduce a special agreement between Banka Monthly Index Performance (SBI 20) -4.0% Slovenije and the Finance Ministry. According to Finance GDP per Capita (2010 in EUR) 17,224 Minister France Krizanic, the relations will be regulated in a GDP Real 2010 (Change against prev. year in %) 0.6 similar way as before. When Slovenia sends money to countries entitled to IMF aid, 3-Month Money Market Rate (current in %) 0.66 it will provide the funds from the state budget and reserves, Inflation in 2010 (yearly average in %) 1.6 while additional costs, which are expected to increase, will Upcoming Holidays none be covered by Banka Slovenije. However, costs arising from unpaid loans or changes in Source: Bank Austria, National Statistics currency exchange rates will be covered from the budget. Krizanic expects no direct impact on the state budget. Actual 38 Day moving average 200 Day moving average Higher costs are expected to arise from the efforts of deal- 5500 ing with the crisis, especially in developing countries, and from ensuring sufficient growth of the global market, which 5000 will bring further benefits to small, open economies such as Slovenia, Krizanic explained. 4500

4000 Impact on investors For information purposes only. 3500

3000 Business Sentiment Down Slightly in February Jul Apr Okt Mai Jun Jan Mrz Mrz Feb Aug Sep Nov Dez Business sentiment in Slovenia deteriorated slightly in Febru- ary, as the seasonally-adjusted indicator was one percent- Source: Thomson Datastream age point higher compared to January, and 15 percentage points down on February 2009, the Statistics Office said on Monday, 22 February 2010. The main reason was a lower services confidence indicator.

Confidence in manufacturing was level compared to the month before, but was down 26 points year-on-year. Expec- tations for the coming three months are mostly negative. In retail, confidence increased by 2 percentage points at the monthly level and 6 percentage points year-on-year. The majority of companies said the main limiting factor was competition, low demand and high labour costs.

The seasonally-adjusted confidence indicator for construction was also level compared to January, and was down 15 percentage points year-on-year. Expectations in the sector for the coming three months are mostly negative.

The business sentiment indicator was pulled down by the services confidence indicator, which decreased by 4 percentage points on January. It was however up 3 percentage points year- on-year. Expectations for the next three months are favourable, except the expected demand indicator, the office said.

Issue 108, April 2010 30 Slovenia

The consumer confidence indicator meanwhile increased Tuerk Discusses Economic Situation with ECB by two percentage points compared to the month before. Officials This is largely due to optimistic expectations of consumers President Danilo Tuerk met at the headquarters of the Euro- regarding savings for the next 12 months. pean Central bank (ECB) in Frankfurt on Wednesday, 03 February 2010 the bank’s president Jean-Claude Trichet Impact on investors and ECB executive board member Lorenzo Bini Smaghi, For information purposes only. discussing the economic situation in the eurozone and a reform of financial system regulation.

D&B Sees Gradual Economic Recovery for Slovenia The bank plays a very important role in the efforts to reform While expecting the number of unemployed and receivership financial system regulation as part of the Financial Stability proceedings in Slovenia to increase further, the rating firm Board at the level of the G-20 major economies, the presi- Dun&Bradstreet has also perceived gradual recovery of the dent’s office said. Slovenian economy. Tuerk was acquainted with the economic trends in the euro- D&B noted in its latest country credit rating report on Thurs- zone and expectations for 2010. Trichet and Bini Smaghi also day, 04 February 2010 that Slovenia’s political environment presented the president the bank’s efforts to provide financial is very stable. stability in time of the implementation of exit strategies.

However, pressure will be caused by the announced reforms ECB has been providing for maintenance of liquidity and and measures with which Slovenia wants to reduce budget stability of the financial system of the euro area with numer- deficit. ous monetary policy measures in time of the financial and economic crisis. According to the report, Slovenian banks remain in a good shape, and eurozone membership all but eliminates exchange Impact on investors rate risks. For information purposes only. “Policy-making is sound, and there is a well-educated yet affordable workforce,” it says, adding that Slovenia has low levels of corruption and extensive trade links with both West- ern Europe and the emerging markets of Central and Eastern Europe.

Slovenia’s rating remains DB2c, which means a low level of risk. The rating 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 108, April 2010 31

Ukraine

Clearstream opened correspondent account for the Market Capitalisation UAH 234.4bn National Depository of Ukraine (NDU) YTD Dev. of Market Capitalisation 14.0% NDU has established correspondent relations and opened a correspondent account with the Clearstream Banking Lux- Number of SE Transactions p.m. 5,670 embourg (ICSD). YTD Dev. of SE Transactions -13.5% SE Turnover (PFTS) UAH 3.1bn NDU cooperation with Clearstream opens up new possi- Monthly Index Performance (PFTS) 11.2% bilities for Ukrainian companies related to operations with GDP per Capita (2010 in EUR) 2,148 securities placed abroad. GDP Real 2010 (Change against prev. year in %) 2.0 According to the legislation of the Ukraine establishing cor- 3-Month Money Market Rate (current in %) 10.25 respondent relations with foreign depository institutions is an Inflation in 2010 (yearly average in %) 10.9 exclusive competence of the National Depository of Ukraine. EUR/UAH 10.84 For today NDU has correspondent relations with the following Upcoming Holidays 4, 5 April foreign depository institutions: Austrian CSD (OeKB), Russian ‘Rosbank’, ‘Infinitum’, ‘Depository and Corporate Technolo- Source: Bank Austria, National Statistics gies’, and Central Moscow Depository.

Actual 38 Day moving average 200 Day moving average Since the beginning of 2009, through the system of NDU 4100 correspondent relations, nearly USD 10 mn had flown into 3600 the Ukraine.

3100 Today, the total nominal value of securities nominated in for- 2600 eign currency that are being serviced within the NDU record- 2100 keeping system totals approximately UAH 205 mn.

1600

1100 Impact on investors Clearstream opened correspondent account for the NDU. 600 Jul Apr Okt Jun Jan Mai Mrz Mrz Feb Aug Sep Nov Dez

Source: Thomson Datastream

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

Issue 108, April 2010 32

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 Veselin Stefanov [email protected] Tel. + 359 2 93 20 112 Philipp Aschl [email protected] Tel. +43 50505 58508 [email protected] Croatia Zagrebacka Banka d.d. Austria Savska 60/IV UniCredit Bank Austria AG HR-10000 Zagreb Julius Tandler-Platz 3 Croatia A-1090 Vienna Valerija Bezak Austria Tel. +385 1 6305 430 Günter Schnaitt [email protected] Tel. +43 50505 58501 Snjezana Bruncic [email protected] Tel. +385 1 6305 400 Thomas Rosmanitz [email protected] Tel. +43 50505 58515 [email protected] Czech Republic Tina Fischer Tel. +43 50505 58512 UniCredit Bank Czech Republic a.s. [email protected] Revolucni 7 CZ-110 05 Prague Stephan Hans Czech Republic Tel. +43 50505 58513 [email protected] Michal Stuchlik Tel. +420 22121 6770 [email protected]

Ales Polasek Tel. +420 22121 6771 [email protected]

Dita Safarova Tel. + 420 221 112 942 [email protected]

Issue 108, April 2010 33 Your Contacts

Hungary Romania UniCredit Bank Hungary Zrt. UniCredit Tiriac Bank S.A. Szabadsag ter 5 – 6, 6th floor Ghetarilor Street 23 – 25 H-1054 Budapest RO-014106, Bucharest 1 Hungary Romania

Júlia Romhányi Irina Savastre Tel. +36 1 301 1923 Tel. +40 21 200 2670 [email protected] [email protected]

Zsanett Lencses Viviana Traistaru Tel. +36 1 301 1920 Tel. +40 21 200 2673 [email protected] [email protected]

Livia Meszaros Tel. +36 1 301 1921 Russia [email protected] ZAO UniCredit Bank 9, Prechistenskaya Emb. Kazakhstan RU-119034 Moscow Russian Federation JSC ATF Bank Furmanov Street 100 Alexander Nazarov KZ-050000 Almaty Tel. +7 495 258 73 49 Republic of Kazakhstan [email protected]

Vladimir Vassilyev Tel. +7 727 258 3015 (1353) Serbia [email protected] UniCredit Bank Serbia JSC Natalya Kolnogorova Omladinskih Brigada 88 Tel. +7 727 258 3015 (1232) RS-11070 Belgrade [email protected] Serbia

Jasmina Radicevic Poland Tel. +381 11 3028 611 [email protected] Bank Polska Kasa Opieki SA (short: Bank Pekao) Ul. Grzybowska 53/57 Goran Platiša PL-00-950 Warsaw Tel. +381 11 3028 687 Poland [email protected]

Tomasz Grajewski Tel. +48 22 524 5867 Slovakia [email protected] UniCredit Bank Slovakia A.S. Mariusz Piekos Sancova 1/A Tel. +48 22 524 5852 SK-811 04 Bratislava [email protected] Slovak Republic

Kamil Polak Matej Letko Tel. +48 22 524 5863 Tel. +421 2 4950 3701 [email protected] [email protected]

Marta Boboryk Zuzana Milanova Tel. +48 22 656 10 92 Tel. +421 2 4950 3702 [email protected] [email protected] Krzysztof Pekrul Tel. +48 22 524 5864 [email protected]

Marek Cioroch Tel. +48 22 524 5862 [email protected]

Issue 108, April 2010 34 Your Contacts

Slovenia Websites UniCredit Bank Slovenija d.d. http://custody.ba-ca.com Wolfova 1 http://www.unicreditgroup.eu SI-1000 Ljubljana http://www.bankaustria.at 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]

Ukraine UniCredit Bank LLC 14a, Yaroslaviv Val UA-01034 Kyiv Ukraine

Bohdana Yefremova Tel. +380 44 230 3341 [email protected]

Elizaveta Sotnichenko Tel. +380 44 590 1208 [email protected]

Ganna Sankina Tel.: +380 44 590-1209 [email protected]

Katherine Yevtushenko Tel. +380 44 590-1210 [email protected]

Issue 108, April 2010 35

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 108, April 2010 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: 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 108, April 2010

GSS NEWSLETTER ISSUE 108 April 2010 ﻿ 2

GSS NEWSLETTER ISSUE 108 April 2010 2