GSS NEWSLETTER ISSUE 116 Dezember 2010 2

Content Dear Clients 4 HR Announcement 6 JOHN'S CORNER 7 Austria 8 Facts on Austria and Its Banks 8 Belarus 10 UniCredit Bank credited companies of Belarus for more than USD 200 mn 10 Changes in Tax Code of Belarus have been adopted 11 Additional preferences for investors included in the new edition of the Investment Code of Belarus 11 Bosnia and Herzegovina 12 EBRD launches 2010-2013 strategy for Bosnia and Herzegovina 12 IFC and SASE conference “Going public” 13 Bulgaria 14 FSC Initiative to Review the Rules and Procedures of the Central Depository and the Bulgarian Stock Exchange 14 Financial Supervision Commission Drafts New Tariff 15 Bulgarian Stock Exchange and Belgrade Stock Exchange Sign Memorandum of Cooperation 15 Global Finance Award Ceremony: UniCredit Bulbank is Best Bank in Bulgaria 15 Croatia 16 Higher crisis tax rate on all incomes abolished 16 Government transferring its HT shares to pensioners’ fund 16 HPB supervisory board approves recapitalisation 17 Czech Republic 18

C ˇ EZ again generates highest profit for owners in 2009 18 Start of Trading with Fortuna Share Issue 19 Hungary 20 Increased Activity of Foreign Investors at the Budapest Stock Exchange 20 Hungarian Government to Announce Structural Reforms in February 21 Kazakhstan 22 Trades results at KASE 22 Kyrgyzstan 23 Parliamentary elections in Kyrgyzstan ‘beginning of new government’ – Otunbayeva 23

Issue 116, Dezember 2010 3

Poland 24 Polish NDS is opening operational link with the Lithuanian market 24 WSE shares debuted on the Warsaw Stock Exchange 25 Romania 26 Economy 26 Romania’s Finance Ministry gets EUR 1.31 bn from the market, with an average yield of 4.8% 26 Performance of the Romanian Stock Exchange companies in Q3 27 Central Bank 27 The solvency of the banking system in Romania increased to 14, 6% in September 27 Russia 28 Investors buy shares according to government’s privatization plan 28 Draft order that abolish necessity of disclosure of substation facts 28 The first foreign security allowed for placement in Russia 29 FFMS has implemented the monitoring system to detect suspicious transactions on the stock market 29 RTS plans IPO in 2011 29 FFMS has prepared a draft order on disclosure of information of technical failures on stock exchanges 30 Profile Committee of the State Duma supported law draft on equality of shareholders in receiving dividends 30 Serbia 31 Gross Domestic Product Growth Revision 31 Inflation Target Revision 31 Slovak Republic 32 Bratislava Stock Exchange Trading in October 32 Changes to the value added tax act 33 Slovenia 34 Termination of index LJSEX and lifting of restriction on the Entry Market 34 Amended requirements for account opening are changed due to new list of countries entitled for simplified procedure 34 Amended Banking Act implemented EU Directives 2009/111/EC, 2009/14/EC and partly 94/19/EC 35 IMF Downgrades Slovenia’s Economic Growth for 2010 35 Ukraine 36 IMF mission approved a first review of stand-by-program for Ukraine 36 President of Ukraine signs the law on electronic registration of companies 37 Your Contacts 38 Disclaimer 41 Imprint 42

Issue 116, Dezember 2010 4

Dear Clients

Bohdana Yefremova (Head of GSS Ukraine)

I am particularly happy and excited to open the Decem- Another positive result of dematerialization is that it also urged ber issue of our Newsletter, as it gives me a chance to the depositories, National Depository of Ukraine (NDU) and congratulate you with the upcoming winter holidays. Let All-Ukrainian Securities Depository (AUSD), to establish func- me heartily wish you all health, prosperity and happiness tional correspondent relations. In the situation, when the in the New Year. My team and I are looking forward to issuer placed the global certificate with NDU, while, histori- fruitful cooperation with you in the future. May new ideas, cally, 80% of shares are in the AUSD depository, this was inspiration, and opportunities continue to make our busi- the only way to enable settlements in respective securities. ness mutually-beneficial and our cooperation productive. In July, the Parliament issued a law obliging the depositories The Year 2010 has been rich in developments for the to establish fully-fledged correspondent relations. This was Ukrainian market, and some of the most influential ones a good motivation for NDU and AUSD to start cooperating. will be presented in this release from the perspective of our local GSS team. Still, the level of dematerialization is quite low, some more 29 October2010 is the cut-off date stipulated by the Law than 10% of the issuers have completed their dematerializa- “On joint stock companies” dated 17 April 2008 for Ukrainian tion on time. However, in terms of the absolute numbers, this companies to complete dematerialization of their shares. This constitutes more than 2000 companies out of over 25000 process, which started in September 2008, developed into issuers. When speaking of the companies attractive to inves- full range this year. The companies, which were pressed by tors one can say that the majority of these companies have the deadline, rushed into dematerialization. In Ukraine, his- already undergone dematerialization or are now at its final torically a vast majority of shares was issued in documentary stage. form, with the registrars being responsible for recording the ownership rights. Now, the companies had to choose one out Now the Securities and Stock Market State Commission of two depositories and a custodian, where the shareholders of Ukraine (SSMSC) has to demonstrate the willingness to would hold their dematerialized shares. enforce the companies which did not comply within the speci- fied term. Certain steps were taken without delay: the SSMSC Dematerialization shall positively influence the local stock issued a letter providing such companies with the grace market, since it will shift all settlement processes to the period of 6 months to comply. Financial and other sanctions depositories, thus making them more efficient, less risky, less will later be imposed on those companies, which did not take time- and efforts- consuming. In addition, such shares will be the necessary measures. The register of shares of persistent eligible for modern technologies offered by the depositories violators will be frozen. This will block any movements with and stock exchanges. such securities.

Issue 116, Dezember 2010 5 Dear Clients

There are many other positive changes to come in the future We realize that adherence to the modern-style corporate in connection with the “Law on joint stock companies”. The culture in practice is a gradual process, which will continue directive envisaged some essential changes regulating the after 30 April 2011. This is because the changes need to take procedures and activities of joint-stock companies, intro- place not only on paper but also, which is more important, ducing progressive and modern mechanisms coherent with in people’s minds. Accordingly, we anticipate a lot of work the best principles of world corporate governance. Most to be done at the local level in order to bring these changes important, the new Law removed a majority of deficiencies to life. Furthermore, we see our important role, as a Ukrain- that existed in the current legislation. The new provisions, ian market participant and, at the same time, a member of governing the protection of shareholder rights, information a multi-national GSS network, in these processes. This may disclosure, decision making and prevention of abusive trans- be active interaction with the local issuers, informing them of actions by the executives, are all progressive innovations the needs of investors and internationally accepted market making operations of Ukrainian joint-stock companies more practices. Since our entrance into the Ukrainian market in consistent with those of their counterparts in the mature September 1999, we have considered our goal in bringing economies, and, as such, elevating the transparency and the Western experience in securities services to the local investment attractiveness of the Ukrainian markets in general. market. Now, our input in the processes aimed at the transformation of corporate culture in Ukraine is an important step The charters and internal regulations of existing joint-stock in fulfilling this goal. companies shall be made compliant with the new requirements within two years, until 30 April 2011. Hence, the proc- Best regards, ess of re-registration of Ukrainian joint-stock companies into the new form, public or private joint-stock company, is now fully on the way.

Bohdana Yefremova Head of GSS Ukraine

Olga Yuschenko

Issue 116, Dezember 2010 6

Dear Clients

Bohdana Yefremova Olga Yuschenko (Head of GSS Ukraine)

I am very pleased to introduce Olga Yuschenko, who has recently joined our team at GSS Ukraine.

Olga is currently in the process of obtaining her bachelor’s degree in financial management from Kyiv Interregional Acad- emy of Management.

She gained her first work experience in JSC” Raiffeisen Bank Aval” as relationship manager in the Custody department of Multinational Corporate Customer Division. Olga also occupied the position of a specialist in Depositary & Accounting Operations Team within Multinational Corporate Customer Division of the Custody department.

In pursuit of further professional development, Olga decided to take on a position of operations officer in GSS Ukraine. She will be responsible for settlement of transactions, billing & invoicing.

Please join us in warmly welcoming Olga wishing her all the best in her new position.

Best regards,

Bohdana Yefremova Head of GSS Ukraine

Issue 116, Dezember 2010 7

JOHN'S CORNER

John Gubert

Sibos in Amsterdam was a useful place to reflect on the This is opening up links with XML, FIX and other standards. benefits that Swift has brought to the securities world. From It is also paving the way for major developments in the world a sub-custodian perspective, standard messages for core of CCPs, collateral management and funds. On the CCP data flow between the global community and the sub has side, Swift is piloting early next year a standard message set been vital. Those messages have enabled greater automa- enabling consistent communication between clearing mem- tion and reduced risk. bers and their CCPs. On the collateral management front, SWIFT have created ISO 20022 standards from data flows But Swift is now extending its reach, especially with the new agreed with the industry and these are going into pilot with ISO 20022 suite of messages. It still has limitations. Its reach roll out targeted for March. On the funds side, there is good into the asset management population is light especially in support for new messages in the admittedly relatively narrow emerging markets. It may have traction with the large global field of subscriptions and redemptions. However, given the broker dealers, but fails to penetrate local brokerage com- high potential financial and reputational risk of error in this munities. Furthermore, although it is increasing its reach into area, the scale of usage will always understate the value for infrastructure, the progress is slow as it needs to strike when users of automation and standardisation of these functions. there is a major re-engineering of markets. The extension of the remit of Swift automatically leads to But that is what is happening at the moment and so Swift exaggerated hopes for radically lower cost and potential and Swift users have an undoubted opportunity to reduce dis-intermediation of local agents. But no agent currently risk, reduce cost and increase the robustness of market operates simply as a result of their ability to translate one infrastructures. The changes are two-fold. On the one hand message into another. Service is much broader than this. there are the major industry developments such as T2S, Automation and standardisation allows cost reduction; more exchange mergers or CCP launches. On the other hand, importantly it reduces error and the scale of operating losses. there is regulatory change such as the demand for secu- In short it improves service quality. rities data repositories, greater transparency or enhanced corporate governance. Agents gain opportunity as markets open to new investors. The recent work on message standards is as important as In a world where there are new messages demanded, Swift the creation of the original MT5** series and that has been a has an invaluable tool in the ISO 20022 suite. Moreover, a major facilitator in the opening up of global markets. new approach to interoperability is enhancing their value. 30 years ago interoperability was assured by saying this is the standard and you will comply with it. Now we can interoperate as long as there is agreement on the business model and flows and data elements within it. If all the mapping links into John Gubert one business model which is supported by the industry, the bridging between different standards is radically simplified.

Issue 116, Dezember 2010 8

Austria

Facts on Austria and Its Banks Market Capitalisation EUR 78.2bn Following the CEBS stress test the Austrian National Bank YTD Dev. of Market Capitalisation 5.2% (OeNB) produced a fact sheet on Austrian Banks and their commitment in Central, Eastern and southeastern Europe Number of SE Transactions p.m. n.a. (CESEE): YTD Dev. of SE Transactions n.a. SE Turnover (Vienna SE) EUR 2.3bn ■■CESEE is a long-term growth market for bank services Monthly Index Performance (ATX/VSE) -5.9% and therefore offers good prospects for Austrian banks. GDP per Capita (2010 in EUR) 33,717 ■■Economic developments have been very diverse in CE- GDP Real 2010 (Change against prev. year in %) 1.6 SEE; after 20 years of transformation, the countries do not 3-Month Money Market Rate (current in %) 1.00 represent a homogeneous economic region. Inflation in 2010 (yearly average in %) 1.8 ■■In the long term, after the end of the current global finan- Upcoming Holidays none cial crisis, CESEE will be the region with the best growth prospects in Europe. After an average growth of 1.5% in Source: Bank Austria, National Statistics 2010, the growth advantage of the 10 EU-member states will restore their growth edge over the Euro area countries Actual 38 Day moving average 200 Day moving average until 2015 and will amount to around 2 percentage points. 2800 2700 ■■Austrian banks’ exposure to CESEE is significant (EUR 2600 212 bn as on 30 June 2010), but regionally well diversified 2500 and mostly locally financed. As a result, the money market dependence of Austrian banks’ subsidiaries is small. 2400 2300 ■■Austrian banks’ total international exposure (141% of GDP) 2200 is still low relative to other countries (Swiss banks: 300% of 2100 the national GDP), despite its claims on CESEE countries. 2000 ■■According to the strong focus of Austrian banks on Eu- Jul Apr Jän Jun Mai Mär ropean growing regions in CESEE they are marginally August Februar Oktober November Dezember November

September exposed to markets that are currently facing difficult conditions, like Greece (0.5% of Austrian banks’ foreign claims) Source: Thomson Datastream or Ireland (1.0%).

■■Sustained high operating earnings levels in CESEE strengthen Austrian banks profitability. At the end of June 2010, the CESEE subsidiaries’ operating result amounted to EUR 3.41 bn.

■■The CESEE portfolio is characterized by traditional banking activities. Accordingly, the CESEE subsidiaries’ net interest income accounts for some 70% and fee-based income for another 22% of their total operating income.

Issue 116, Dezember 2010 9 Austria

■■Austrian banks are living up to their responsibility towards CESEE also under the currently difficult circumstances, supporting their local subsidiaries by providing liquidity and equity.

■■The first half of 2010 turned out as positive for Austrian banks according to the consolidated periodical profits of EUR 1.8 bn. Furthermore, at some 10.6%, Austrian banks average Tier 1 ratio is more than twice as high as the regulatory minimum requirement.

■■Provisionally estimates for 2010 predict a significant improvement of Austrian banks’ (unconsolidated) operating profits. In 2009 the net profit constitutes EUR 0.04 bn, but in 2010 the Austrian banks are looking forward to a net profit of EUR 2.97 bn in 2010.

■■The EUR 65 bn bank support package puts Austrian banks in a position to respond swiftly and flexibly to present and future challenges.

■■The OeNB’s most recent stress test of spring 2010 shows that the state of the Austrian banking system as a whole has improved markedly compared with 2009. At the same time, the greater divergence of individual results ultimately confirms the need for stepped-up restructuring processes triggered by the crisis.

■■The results of the CEBS-stress test 2010 on behalf of ECOFIN are satisfying for all participating Austrian banks. Even after a radical tightening of the economic situation in Austria and CESEE countries, the tier 1 capital of leading Austrian banks would almost be twice as high as the regulatory minimum requirement.

■■The massive increase in the funds available for IMF and EU aid and their rapid allocation have a stabilizing effect on CESEE both as a whole and at the national level, and therefore also benefit – indirectly – Austrian banks.

(Source: Österreichische Nationalbank)

Impact on investors For information purposes.

Written and edited by: Stephan Hans Relationship Management Austria Tel. +43 50505 58512 · [email protected]

Issue 116, Dezember 2010 10

Belarus

UniCredit Bank credited companies of Belarus for Market Capitalisation USD 12.0bn more than USD 200 mn YTD Dev. of Market Capitalisation n.a. At the end of September 2010 the representation office of UniCredit Bank Moscow in the Republic of Belarus has Number of SE Transactions p.m. (BCSE) 1,293 reviewed 3 years activity in the country. During this time, the YTD Dev. of SE Transactions 19.9% Belarusian enterprises and companies were credited for more SE Turnover (BCSE) BYR 1,631bn than USD 200 mn by UniCredit Bank. The main customers Monthly Index Performance (BCSE) 4.3% are enterprises of the Belarusian power engineering, mechan- GDP per Capita (2010 in EUR) 396 ical engineering, petrochemical trade. Representation office GDP Real 2010 (Change against prev. year in %) 17.43 assisted the Belarusian corporate clients in attracting financial resources provided by the parent bank and shareholders, as 3-Month Money Market Rate (current in %) n.a. well as supporting Russian, Italian, Austrian, German and Inflation in 2010 (yearly average in %) 3.4 other clients of UniCredit Group, interested in working with BYR/EUR 0.00024 Belarusian partners. Upcoming Holidays 1, 7 January “Derived experience of UniCredit Bank on the Belarusian enterprise market has confirmed the correctness of the, by Source: Bank Austria, National Statistics shareholders in 2007, chosen strategy that provides a basis to continue active crediting of Belarusian customers. We are ready to carry out financing in various forms, and also plan to actively provide investment and advisory services during the process of declared privatization of the Belaru- sian economy, basing on the experience and support of our shareholder UniCredit Group “, - member of Board of Direc- tors of UniCredit Bank Moscow, Kirill Zhukov-Emelianov says.

Impact on investors: Further expansion of financial services of UniCredit Bank Moscow in Belarus.

Issue 116, Dezember 2010 11 Belarus

Changes in Tax Code of Belarus have been adopted Additional preferences for investors included in the During 2010 the complex task of simplifying the tax system new edition of the Investment Code of Belarus of Belarus was done taking into consideration the opinion Deputy Minister of Economy of Belarus, Vladimir Adashkev- of business. ich, commented on the new edition of the Investment Code of Belarus in Minsk at XI International Conference “Problems of The changes are made on three main areas: Forecasting and State Regulation of socio-economic development”. According to Mr. Adashkevich, additional prefer- ■■ Reduction of the number of applicable taxes, which shall ences shall be provided to investors in Investment Code, reduce the tax burden on the economy; which is currently undergoing approval. “We also look for- ■■Reduction of the frequency of paying taxes and filing tax ward to the adoption of the Directive N°- 4 on liberalization of returns. This shall reduce the time and labor costs of the the Belarusian economy” - said the deputy minister, adding taxpayer; that its adoption is expected shortly. Vladimir Adashkevich expressed confidence that these actions will become a seri- ■■Improvement of mechanism of collecting the main taxes ous impulse to expand the investor base in Belarus. Further- and expanded investment benefits. more, according to him, the increase of investment in fixed assets amounted to about 10% during first 9 months of this Starting from 2011, two local taxes are abolished – the col- year over the same period last year. lection on the development of territories and the local tax on services. Impact on investors: In addition, to address issues of investment activity starting Planned adoption of Investment Code will favour invest- from 2011 main investment benefits in the tax legislation will ment attraction of Belarus. be improved. Today they are still used with restrictions and from next year on, these restrictions will be eliminated.

Restriction on tax deductions of VAT, which are carried out for investments, will be eliminated. This will also help to solve investment problems. Thus, the measures will reduce the tax burden in 2011 to 0.4% of GDP, which will be more than BYR 70 bn (USD 713 mn). These funds will remain in the economy in the form of investments, profits, wages that shall generally contribute to economic growth.

Impact on investors: Changes in tax legislation in Belarus shall positively contribute to investment growth of economy.

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

Issue 116, Dezember 2010 12

Bosnia and Herzegovina

EBRD launches 2010-2013 strategy for Bosnia and Market Capitalisation (Sarajevo SE) BAM 7.1bn Herzegovina YTD Dev. of Market Capitalisation -0.4% The EBRD’s Board of Directors has approved a new strategy for Bosnia and Herzegovina that sets out priorities for Number of SE Transactions p.m. 1,144 the Bank’s activity in the country until 2013. The focus over YTD Dev. of SE Transactions -51.1% the next three years will remain on financing and supporting SE Turnover (SASE) BAM 6.6mn projects in infrastructure and energy, financial and industrial Monthly Index Performance (SAX-10/SASE) 2.3% and key export-oriented sectors. Market Capitalisation (Banja Luka SE) BAM 3.6bn To mitigate the global crisis impact on the country, the Bank YTD Dev. of Market Capitalisation -4.7% acknowledges the need for an expanded level of activities Number of SE Transactions p.m. 1,691 in the coming years, both as crisis response and in support YTD Dev. of SE Transactions -49.0% of the recovery process. The Bank will promote transition SE Turnover (BLSE) BAM 7.5mn in Bosnia and Herzegovina by continuing and enhancing Monthly Index Performance (BIRS/BLSE) 2.1% its efforts through the provision of financing and through GDP per Capita (2010 in EUR) 3,278 intensive policy dialogue. GDP Real 2010 (Change against prev. year in %) 0.5 According to the new country strategy, the EBRD will devote 3-Month Money Market Rate (current in %) n.a. its efforts to supporting development and implementation of a Inflation in 2010 (yearly average in %) 2.2 comprehensive reform program in all infrastructure sectors. In BAM/EUR 1.96 particular, the Bank will provide support both for construction Upcoming Holidays none of new and modernization of the existing infrastructure, facili- tating the involvement of the private companies and better sector integration both regionally and within the country. Source: Bank Austria, National Statistics In the energy area, the EBRD will continue to promote sector 1200 Actual 38 Day moving average 200 Day moving average reform, institution building, regional energy integration, help- 1150 ing to enhance reliability and compliance with the EU emis-

1100 sion standards. Investment for energy efficiency and renew- able energy projects will be provided in parallel to public and 1050 private operators accordingly, including through the Western

1000 Balkans Sustainable Energy Credit Line Facility (WeBSECLF), technical assistance and direct financing. 950

900 In the financial sector, the Bank will support local banks, leas- ing companies and microfinance institutions (MFIs) to ensure 850 sustainable lending to small enterprises and households and Jul Apr Mai Jun Jän Mär further developments in the SME sector. August Oktober November November Dezember September

Source: Bloomberg

Issue 116, Dezember 2010 13 Bosnia and Herzegovina

At the same time, to attract strategic investors and to acceler- IFC and SASE conference “Going public” ate the privatization process, the Bank will actively seek and Sarajevo Stock Exchange together with the International develop projects in key export-oriented sectors, including Finance Corporation (IFC), member of World Bank Group agribusiness, manufacturing and services, telecommunica- and together with the Chamber of Economy of Sarajevo tions, pharmaceutical sector, property and tourism, as well Canton are organizing, on 01 December 2010, a confer- as wood and metals processing. ence on the topic “Initial public offers on Sarajevo Stock Exchange - Going public”. Economic growth in 2010 and 2011 is expected to be positive but modest. In the most recent economic outlook pub- The goal of this conference is to introduce inter- lished on 28 October 2010, the Bank raised its previous ested companies with the process of going public, growth forecast for Bosnia and Herzegovina from 0.4% to and opening themselves to external investors and to 0.8% for 2010 and from 1.7% to 2.2% for 2011. Given the possibilities of gathering capital on capital markets. low starting point, the economy should have potential for stronger growth over the medium term. The conference was designed for joint stock companies who are planning to issue securities for financing further develop- Since the beginning of its operations in Bosnia and Herze- ment and attracting new investors in their ownership struc- govina, the EBRD has committed over EUR 1.2 bn in more ture. Also, it was designed for limited liability companies, than 80 projects in various sectors of the economy. which reached the peak of their development and intend to transform into joint stock companies, as well as for majority Source: EBRD Press Release from 09 November 2010 owners of limited liability companies who want to capitalize their engagement in the company. Impact on investors For information purposes only. Impact on investors For information purposes only.

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

Issue 116, Dezember 2010 14

Bulgaria

FSC Initiative to Review the Rules and Procedures Market Capitalisation BGN 10.3bn of the Central Depository and the Bulgarian Stock YTD Dev. of Market Capitalisation -11.2% Exchange The Financial Supervision Commission initiated a discus- Number of SE Transactions p.m. 12,871 sion with market participants on the review of the Rules and YTD Dev. of SE Transactions 44.7% Procedures of the Central Depository and the Rules and SE Turnover (Bulgarian Stock Exchange) BGN 86.4mn Regulations of the Bulgarian Stock Exchange. The Com- Monthly Index Performance (SOFIX) -8.4% mission noted difficulties in the implementation of some of GDP per Capita (2010 in EUR) 4,722 the requirements in the rules and asked market participants GDP Real 2010 (Change against prev. year in %) -0.5 to provide their opinions and proposals so that they can be reviewed by the Commission and relevant steps be taken. 3-Month Money Market Rate (current in %) 1.50 The purpose of the review is to reduce the administrative Inflation in 2010 (yearly average in %) 2.0 burden on participants and to align the documents with cur- EUR/BGN 1.96 rent regulations. 11, 24, 25, 26, 31 Upcoming Holidays December The Commission expects to receive responses from the market participants within the next month. UniCredit Bulbank

Source: Bank Austria, National Statistics actively participates in the review process by drafting a list of desired changes and submitting this to the Association of

Actual 38 Day moving average 200 Day moving average Banks in Bulgaria for on-ward discussion with other banks 490 and proposal to the Commission within the set deadline.

460 Impact on investors:

430 Improvement of the rules and regulations of the Central Depository and of the Bulgarian Stock Exchange towards 400 reducing the administrative burden on market participants.

370

340 Jul Apr Jän Jun Mai Mär August Februar Oktober November November Dezember September

Source: Thomson Datastream

Issue 116, Dezember 2010 15 Bulgaria

Financial Supervision Commission Drafts New Tariff Global Finance Award Ceremony: UniCredit Bulbank The Financial Supervision Commission published an is Best Bank in Bulgaria announcement that it drafted a new tariff for its services. UniCredit Bulbank was awarded “Best Bank in Bul- The draft document was also made available on the internet garia 2010” by the international magazine Global Finance site of the Commission. It proposes significant increases in (www.gfmag.com). the fees the Commission will collect from supervised entities. In line with the Law on the Financial Supervision Commis- The award was presented by the publisher and editorial sion the proposed new tariff was submitted to the Council director of Global Finance Joseph Giarraputo to the CEO of of Ministers for review and further adoption by Parliament. UniCredit Bulbank Levon Hampartzoumian in Washington. Nearly 200 senior executives from 90 banks in more than 75 According to established market practices, participants will countries were invited to the official ceremony and received give their opinions on the proposed changes to the Commis- their certificate in front of an audience of their peers. For the sion’s tariff, and the increased fees are likely to face strong last twelve years, Global Finance has conducted its Best opposition from stake holders like issuers, brokers, invest- Bank Award Ceremony during the Annual Meetings of the ment and insurance companies who will face an increase IMF and World Bank. of costs in a market which has still not recovered. Earlier the Commission did not receive approval from the Council To make the award selections, Global Finance looked for of Ministers to increase its funding from the state budget in operations that set the standard for the competition. It 2011, and it may be currently seeking an increase of funding employed both subjective and objective criteria in picking the sources from its own activity. country winners. More than ever, customers are demanding superior competence from their partners.

Impact on investors: Information about awards of UniCredit Bulbank is available Possibility that local market participants may shift the in “About the Bank” section on www.unicreditbulbank.bg. added regulatory cost burden to their clients.

Impact on investors: Bulgarian Stock Exchange and Belgrade Stock Proof of UniCredit Bulbank’s operational excellence and Exchange Sign Memorandum of Cooperation commitment to the highest industry standards. The Bulgarian Stock Exchange (BSE) announced the signing of a Memorandum of Cooperation in the field of stock market information with the Belgrade Stock Exchange (BELEX).

Pursuant to the agreement BSE and BELEX will provide all market participants with stock market data at the end of their daily trading sessions through their web sites, www.bse-sofia.bg and www.belex.rs, respectively. The information exchange will include summarized data on a daily basis about the changes in the indices of BSE and BELEX, the gaining or losing companies for the day, the number of trades, traded volume of securities and the turnover by market segments, market capitalization by market segments, as well as the top 10 most liquid companies on the respective market.

BELEX is the second South-East European Exchange after the Macedonian Stock Exchange, which joined the initiative of the BSE for stock market data exchange in the region.

Impact on investors: Increased visibility of markets in the region.

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

Issue 116, Dezember 2010 16

Croatia

Higher crisis tax rate on all incomes abolished Market Capitalisation HRK 168.7bn About 344,500 workers and pensioners whose monthly YTD Dev. of Market Capitalisation -1.7% incomes are over HRK 6,000 received higher salaries and pensions as of 01 November 2010 with the cancellation of a Number of SE Transactions p.m. 16,139 4% crisis tax, with the average increase to be about HRK 380. YTD Dev. of SE Transactions -45.4% SE Turnover (Zagreb SE) HRK 760.6mn The crisis tax on all incomes was introduced on 01 August Monthly Index Performance (Crobex/ZSE) -2.4% 2009, with two rates – 2% on incomes between HRK 3,000 GDP per Capita (2010 in EUR) 10,299 and HRK 6,000, which was cancelled on 01 July this year, and the mentioned 4% rate on incomes over HRK 6,000. The GDP Real 2010 (Change against prev. year in %) -1.5 crisis tax applied only to Croatian residents, both natural and 3-Month Money Market Rate (current in %) 4.0 legal persons. Under the crisis tax law, more than HRK 2.8 Inflation in 2010 (yearly average in %) 1.0 bn was paid into the state budget by the second half of this EUR/HRK 7.32 month, including HRK 1.06 bn between August and Decem- Upcoming Holidays none ber 2009 and HRK 1.82 bn this year through October 2010. The 4% rate applies until the end of the year to freelancers

Source: Bank Austria, National Statistics with monthly incomes over HRK 6,000. This refers to about HRK 15,000 taxpayers, who are expected to bring about

Actual 38 Day moving average 200 Day moving average HRK 100 mn into the budget by the end of 2010. 2300

2200 Impact on investors The 4% crisis tax rate abolished as of 01 November 2010. 2100

2000 Government transferring its HT shares to pensioners’ 1900 fund The Croatian government has decided to transfer its shares in 1800 the HT-Hrvatske Telekomunikacije company to the Pension- 1700 ers’ Fund free of charge. The government holds 2,859,148 Jul Apr Jän Jun Mai Mär shares in the telecommunications company, with the nominal August Februar Oktober value of HRK 100 per share. The market value was deter- November Dezember November September mined on the basis of the last trading price on the day when Source: Thomson Datastream the decision on the transfer was made.

Impact on investors The government transferred its HT shares to Pensioners’ Fund.

Issue 116, Dezember 2010 17 Croatia

HPB supervisory board approves recapitalisation The Hrvatska Postanska Banka (HPB) supervisory board has given its consent for the recapitalisation of the bank so the HPB, at a 15 December general shareholders’ meeting, will increase its guarantee capital to HRK 1,655 bn, while its tier 1 capital will be HRK 966.6 mn. The tier 1 capital will be increased with a deposit of up to HRK 450 mn by the Republic of Croatia, while a hybrid deposit by the Croatian Pension Insurance Bureau in the amount of HRK 50 mn will be turned into bank capital. By increasing bank capital, the HPB has entirely supported its development plans and strategy of further growth and expansion. The tier 1 capital would be increased by HRK 312.3 mn to HRK 966.6 mn by issuing 283,928 shares, each HRK 1,100 nominal value, at the price of HRK 1,761 per share.

Impact on investors HPB will increase its share capital.

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

Issue 116, Dezember 2010 18

Czech Republic

C ˇ EZ again generates highest profit for owners in Market Capitalisation CZK 1.3trn 2009 YTD Dev. of Market Capitalisation 2.0% Energy company CEZ brought the highest economic profit to its owners last year and once again topped the chart of Czech Number of SE Transactions p.m. n.a. companies ranked in terms of creation of Economic Value YTD Dev. of SE Transactions n.a. Added (EVA), compiled by agency CEKIA. Mobile operator SE Turnover (Prague SE) CZK 63.0bn Telefonica O2 Czech Republic ranked second, followed by Monthly Index Performance (PX) 2.2% rival T-Mobile. Ranking of the two companies was also the GDP per Capita (2010 in EUR) 13,773 same as a year earlier. Gas company RWE Transgas regis- GDP Real 2010 (Change against prev. year in %) 2.0 tered the biggest upward shift in the chart, while car maker Skoda Auto saw the biggest fall. 3-Month Money Market Rate (current in %) 1.50 Inflation in 2010 (yearly average in %) 1.4 Negative influence of the economic recession in the Czech EUR/CZK 24.40 Republic on the results of the individual companies further Upcoming Holidays 24 December increased in 2009, CEKIA director Alena Seoud said.

Source: Bank Austria, National Statistics CEKIA’s chart provides information about a company’s economic profit from the point of the firm as well as its shareholders and creditors. The EVA indicator shows whether a Actual 38 Day moving average 200 Day moving average 1350 company creates economic value added for its owners, or whether it destroys the value invested in it. It is an indicator of 1275 a firm’s ranking on the market and its ability to generate profit. 1200 CEZ ranked at the top of the chart for the fourth straight year, 1125 but its position considerably worsened compared to 2008 as

1050 the absolute value of its EVA indicator for 2009 dropped by CZK 8.6 bn to CZK 9.4 bn. This was also the sharpest drop 975 in terms of the absolute EVA indicator in 2009. Telefonica’s

900 EVA rose by CZK 473 mn to CZK 8.5 bn, while T-Mobile’s

Jul EVA fell by CZK 0.5 bn. Apr Jän Jun Mai Mär August Februar Oktober November November Dezember Skoda Auto’s EVA indicator fell from CZK 5.7 bn in 2008 September to minus CZK 612 mn last year, showing the first drop in Source: Thomson Datastream the ten-year history of the chart. This means the company fell from the fourth spot by more than 35,950 positions in a year-on-year comparison.

CEKIA analyst Michal Ricar said the overall development of companies’ performance from the point of EVA in 2009 can be assessed as negative. The aggregate value of the EVA indicator for the 36,000 companies assessed by CEKIA amounted to minus CZK 93 bn. In 2008, CEKIA assessed 30,100 companies whose aggregate EVA reached minus CZK 33 bn. A total of 63% of companies showed a negative EVA value for 2009 compared to 55% a year earlier. The hardest-hit segment was the mining and quarrying industry, according to the EVA methodology.

Issue 116, Dezember 2010 19 Czech Republic

In contrast, production and distribution of electricity, gas and Start of Trading with Fortuna Share Issue water showed a marked growth as the only segment of the Trading with the share issue of Fortuna Entertainment Group economy. RWE Transgas, a dominant gas supplier, saw the N.V. (FORTUNA, ISIN NL0009604859) was successfully sharpest increase in the EVA indicator of CZK 6.7 bn. It also registered last year the biggest leap in the chart to the fourth started on 22 November 2010. The issue is traded on the position from the 59,652th position in 2008. main market of the Prague Stock Exchange.

The lowest EVA value was traditionally calculated for public The following companies provide market making activity for transport companies. Prague public transport company DPP the newly listed share issue of Fortuna Entertainment Group placed at the very bottom of the chart with the EVA value at minus CZK 6.6 bn. Bottom spots were also occupied N.V. (ISIN NL0009604859): by state-run rail operator Ceske drahy (minus CZK 5.8 bn), ■■ C ˇ eská sporˇ itelna, a.s. pharmaceutical company Zentiva Group (minus CZK 5.4 bn) and state-run forest management firm Lesy CR (minus CZK 4 ■■BH Securities a.s. bn). Mining company OKD, which was the climber of the year 2008, was among the worst-assessed companies in terms ■■WOOD & Company FS, a.s. of EVA last year as its indicator fell to minus CZK 3.9 bn. ■■ATLANTIK financˇ ní trhy, a.s. The majority owner of CEZ is the state which controls around 70% of the company’s shares. ■■UniCredit Bank Czech Republic, a.s.

The state received almost CZK 20 bn in dividends from ■■FIO banka, a.s. CEZ’s record-high 2009 profit of CZK 51.9 bn. This year, CEZ expects to post profit of around CZK 47 bn. For detailed information regarding the issue, issuer and the trading data please see the link below: Almost 36,000 Czech companies were assessed in the 2009 http://www.pse.cz/Cenne-Papiry/Detail.aspx?isin= ranking, which is 20% more than in 2008. CEKIA is a pro- NL0009604859#OL vider of company databases and economic information. It focuses mainly on economic data of companies in the Czech Source: PSE Republic. Impact on investors Source: CEKIA Trading with the share issue of Fortuna Entertainment Group N.V. (FORTUNA, ISIN NL0009604859) has been Impact on investors introduced on the main market of the Prague Stock The top ranked Czech companies for the year 2009 in Exchange. terms of Economic Value Added (EVA), compiled by agency CEKIA were the energy company CEZ, followed by mobile operators Telefonica O2 Czech Republic and T-Mobile.

Edited by: Dita Šafárˇová Tel. + 420 221 216 772 · [email protected]

Issue 116, Dezember 2010 20

Hungary

Increased Activity of Foreign Investors at the Market Capitalisation HUF 17,768.1bn Budapest Stock Exchange YTD Dev. of Market Capitalisation 1.6% While the proportion of domestic households has decreased, the activity of foreign investors on the Budapest Stock Number of SE Transactions p.m. 257,165 Exchange (BSE) has significantly increased in 2010, accord- YTD Dev. of SE Transactions 23.0% ing to the new Investor Statistics freshly introduced by the SE Turnover (Budapest SE) HUF 759,997mn BSE. The new statistics show trading activity of four catego- Monthly Index Performance (BUX) 0.4% ries of investors, besides domestic households and foreign GDP per Capita (2010 in EUR) 9,672 investors, the BSE differentiates also domestic institutional GDP Real 2010 (Change against prev. year in %) 1.0 investors and proprietary traders (proprietary trades of section members), as well. 3-Month Money Market Rate (current in %) 5.00 Inflation in 2010 (yearly average in %) 4.9 The turnover on the BSE augmented during spring 2010, in EUR/HUF 272.17 the period between July and September, however, it dropped Extra working day 11 December below the HUF 800 bn value experienced back in January. Upcoming Holidays 24 December As regards to investor groups, the drop in the households’ ratio is conspicuous (30% in January and 24% in September). At the same time, foreign investors seem to be continuously Source: Bank Austria, National Statistics raising their activity in Hungary: their 43% share in the spot market turnover reflects pre-crisis figures. Actual 38 Day moving average 200 Day moving average 26000 The BSE has developed yet another new type of statistics, 23500 seldom seen in the international stock exchange world: the Budapest Liquidity Measure (BLM), which is calculated on 21000 internationally recognized methodology. The BLM describes liquidity from the most important point of view of investors: it 18500 quantifies the implicit costs of the execution of an order when investors face less liquid markets. Therefore, the more liquid 16000 an instrument is, the lower the value of the BLM is, which means lower price paid for liquidity. 13500 Jul Apr Jän Jun Mai Mär Institutional investors may use the measure to analyze liquid- August Februar Oktober ity, manage liquidity risk of portfolios, develop new trading November Dezember November September techniques and analyze transaction costs. Source: Thomson Datastream Impact on investors Two new statistics recently launched by the BSE provide sophisticated information on the composition of investors on the BSE and on liquidity measures.

Issue 116, Dezember 2010 21 Hungary

Hungarian Government to Announce Structural Reforms in February According to the Hungarian National Economic Minister, the government will announce structural reforms in Febru- ary 2011 that will result in HUF 600-800 bn of savings. The reforms have almost a hundred elements, he said.

Taxes paid in Hungary as proportion of the GDP would fall from 38% in 2010 to 36% in 2011 and to 33% in 2014. The Minister confirmed that mandatory private pension funds, one of the three pillars in Hungary’s pension system, would cease to exist, leaving only the state’s pay-as-you-go system and voluntary pension funds.

The government will use the smaller part of the wealth accrued in the private pension funds – HUF 530 bn in 2011 and HUF 250 bn in 2012 – to offset the deficit of the state pension fund. The remainder will be spent to reduce state debt, cutting central budget interest expenditures by HUF 300-400 bn a year.

In the Minister’s opinion, the essence of the new tax system to be created in Hungary in the mid-term is a low tax burden, a VAT rate in line with EU practices and a broader tax base.

Impact on investors Information on the structural reforms being introduced by the government in Hungary.

Written and edited by: Zsanett Lencsés Tel. +36 1 301 1920 · [email protected]

Issue 116, Dezember 2010 22

Kazakhstan

Trades results at KASE Market Capitalisation KZT 11,797.7bn ■■Stock trading volume on KASE (excluding transactions YTD Dev. of Market Capitalisation 4.5% repo) was KZT 263.5 bn (equivalent to USD 1,786.7 mn) and increased relatively to the corresponding period of Number of SE Transactions p.m. 1,837 2009 to 22.4% (on 22.0% in dollar terms). YTD Dev. of SE Transactions 58.6% SE Turnover (KASE) KZT 21,970.9bn ■■The volume of corporate bonds on KASE (excluding Monthly Index Performance (KASE) 1,647.7 transactions in the market repo operations) amounted to GDP per Capita (2010 in EUR) 5,933 KZT 206.0 bn (equivalent to USD 1,397.4 mn) and fell against the corresponding period of 2009 to 38.4% (to GDP Real 2010 (Change against prev. year in %) 6.3 39.1% in dollar terms). 3-Month Money Market Rate (current in %) 3.50 Inflation in 2010 (yearly average in %) 7.2 ■■The volume of trading in government securities (GS) on EUR/KZT 202.24 KASE (excluding transactions in the market repo op- Upcoming Holidays none erations) amounted to KZT 1,286.6 bn (equivalent of USD 8,733,600,000) and increased relatively to the corresponding period of 2009 to 18.5% (by 20.0% in dollar Source: Bank Austria, National Statistics terms).

Actual 38 Day moving average 200 Day moving average 2050 ■■The volume of trades in the market repo (KASE was KZT 10,652.4 bn (equivalent to USD 72,325.8 mn) and 1900 rose versus the same period last year to 17.9% (to 16.1%

1750 in dollar terms).

1600 ■■The volume of trades in foreign currencies at the KASE, including currency swaps, amounted to KZT 12,472.7 bn 1450 (equivalent to USD 84,660.4 mn) and increased relatively 1300 to the corresponding period of 2009 to 61.0% (by 58.4% in dollar terms). 1150 ■■The volume of trades at the KASE in all sectors was 1000 KZT 24,881.2 bn (equivalent to USD 168,903,900,000) Jul Apr Mai Jän Jun Mär and increased relatively to the corresponding period of August Oktober

November Dezember November 2009 to 35.1% (to 33.2% in dollar terms). September

Source: Bloomberg Impact on investors Following information shows the result of the business activity in the Kazakhstan Stock Exchange market from the beginning of the year 2010.

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

Issue 116, Dezember 2010 23

Kyrgyzstan

Parliamentary elections in Kyrgyzstan ‘beginning of Market Capitalisation 3,200.0mn new government’ – Otunbayeva YTD Dev. of Market Capitalisation n.a. Kyrgyzstan will hold parliamentary elections that will lead the country into a new legitimate government after the former Number of SE Transactions p.m. 69 president, Kurmanbek Bakiyev, was ousted in April in a YTD Dev. of SE Transactions n.a. bloody revolution. SE Turnover (KSE) KGS 106.5mn Monthly Index Performance (KSE) 95.0 “These elections contain the destiny for our people and gov- GDP per Capita (2010 in EUR) 1,457.2 ernment. We are not just electing the parliament, we are beginning a new system of government - a parliamentary GDP Real 2010 (Change against prev. year in %) 2.3 republic,” Otunbayeva said. 3-Month Money Market Rate (current in %) n.a. Inflation in 2010 (yearly average in %) n.a. She also said that a parliamentary form of government was EUR/KGS 65.27 not brought to Kyrgyzstan from overseas or from another Upcoming Holidays none continent. “The spirit of democracy is based in the traditions of our forefathers, which helped us survive for centuries,” she said. Source: Bank Austria, National Statistics Twenty-nine parties will compete for seats in Kyrgyzstan’s 120-member parliament, which will see its powers increase as part of constitutional changes approved in late June in a national referendum.

Impact on investors Legitimate parliament elections will bring political and economic stability, and growth of the activity of the securities market.

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

Issue 116, Dezember 2010 24

Poland

Polish NDS is opening operational link with the Market Capitalisation PLN 528.1bn Lithuanian market YTD Dev. of Market Capitalisation 25.1% The National Depository for Securities (KDPW) is opening a new operational link with the Lithuanian market, which will Number of SE Transactions p.m. 1,311,140 enable Lithuanian companies to be listed on the Warsaw YTD Dev. of SE Transactions 57.4% Stock Exchange (WSE) for the first time. On 19 November SE Turnover (WSE) PLN 48.6bn 2010, KDPW and LCVPD (AB Lietuvos Centrinis Vertybiniu˛ Monthly Index Performance (WIG20) 1.4% Popieriu˛ Depozitoriumas), the Lithuanian central securities Monthly Index Performance (WIG) 2.2% depository, signed an agreement providing for the clearing GDP per Capita (2010 in EUR) 9,222 and settlement of transactions in Lithuanian securities to be listed on the WSE. In addition to the advantages for Lithua- GDP Real 2010 (Change against prev. year in %) 3.3 nian companies in being able to raise capital on the WSE, the 3-Month Money Market Rate (current in %) 4.55 new link will also provide Polish investors with opportunities Inflation in 2010 (yearly average in %) 2.4 for more diversified investment portfolios and for a broader EUR/PLN 4.00 range of investment strategies, including arbitrage in both Upcoming Holidays none markets. The link with the Lithuanian market is the newest operational link opened by KDPW this year. In 2010, KDPW Source: Bank Austria, National Statistics opened a link with the Bulgarian and Canadian markets.

Currently, KDPW maintains operational connections with 16 Actual 38 Day moving average 200 Day moving average 2700 foreign central securities depositories, including seven direct 2600 links between KDPW and a foreign depository, including 2500 LCVPD and nine indirect links, either via one of two inter- 2400 national depositories (Clearstream Banking Luxembourg 2300 and Euroclear Bank) or through a custodian bank (the link 2200 to the Bulgarian market). KDPW’s existing links enable the 2100 WSE to list over two dozen foreign companies from Austria, 2000 the Czech Republic, Estonia, France, Germany, Hungary, 1900 Italy, Slovakia, Sweden, UK, USA, Canada, Bulgaria and 1800 now also Lithuania. In addition to co-operation with institu- Jul Apr Mai Jän Jun Mär tions of the Polish capital market, in particular the Warsaw August Februar Oktober Stock Exchange, KDPW is working to simplify registration, November Dezember November September participation, and corporate action procedures for foreign

Source: Thomson Datastream issuers from countries with which KDPW has established or will establish a link.

Source: the National Depository for Securities

Impact on investors Another international linkage will increase regional impor- tance of Polish market as a CEE financial centre.

Issue 116, Dezember 2010 25 Poland

WSE shares debuted on the Warsaw Stock Exchange After almost 20 years of successful development and growth, the Warsaw Stock Exchange shares debuted on the WSE on 9 November 2010. The first moments of trading in the WSE shares took place in the presence of Prime Minister Mr Donald Tusk and Minister of Treasury Mr Aleksander Grad. The ceremony was hosted by the WSE CEO Mr Ludwik Sobolewski. The debut of the WSE brought together a broad group of Polish and foreign capital markets participants, representatives of the Polish Government and Parliament as well as investors.

The offering of the WSE shares attracted historically high interest of retail investors, who subscribed 323,000 shares, as well as Polish and global institutions, whose demand was more than 25 times greater than the number of shares available. At the opening of the first day of trading in the WSE shares, 6,932 transactions worth PLN 75.4mn were concluded and the turnover volume was 742,936 shares. The WSE share price at the opening rose by 18.02% (compared to the reference price of PLN 43.00) and reached PLN 50.75.

Source: the Warsaw Stock Exchange

Impact on investors Privatisation of the WSE is a further step of the Polish market development that may attract foreign investors.

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

Issue 116, Dezember 2010 26

Romania

Economy Market Capitalisation RON 96.6bn YTD Dev. of Market Capitalisation 25.8% Romania’s Finance Ministry gets EUR 1.31 bn from Number of SE Transactions p.m. 50,132 the market, with an average yield of 4.8% YTD Dev. of SE Transactions -55.8% The Public Finance Ministry (MFP) sold state bonds maturing SE Turnover (Bucharest SE) RON 334.5mn in three years worth EUR 1.31 bn on Thursday, at an average Monthly Index Performance (BET/BSE) -1.0% yield of 4.8% and a coupon rate of 4.5%, according to the central lender BNR. GDP per Capita (2010 in EUR) 5,540 GDP Real 2010 (Change against prev. year in %) -2.5 The announced value of the bid was of EUR 1 bn. Banks’ 3-Month Money Market Rate (current in %) 5.35 offers amounted to over EUR 2.05 bn. Inflation in 2010 (yearly average in %) 5.9 The governor of the central lender, Mugur Isarescu, said that EUR/RON 4.30 MFP would better pay its old loan on time, that is maturing Upcoming Holidays none next week, and get another loan afterwards because there is enough money. Source: Bank Austria, National Statistics Romania has to return a credit of EUR 1.4 bn on 29 Novem- Actual 38 Day moving average 200 Day moving average ber. 6200

5700 President Traian Basescu declared on 18 November that the

5200 proof which will demonstrate the efficiency of the measures completed by the government will surface at the end of the 4700 month, when Romania will try to obtain an external loan. 4200

3700 “If we succeed to take this loan of EUR 1 bn with an interest below 5%, then Romania got back its credibility”, the chief 3200 of state said last week. 2700 Jul Apr Jän Jun Mai Mär Impact on investors August Februar Oktober Romania’s Finance Ministry gets EUR 1.31 bn from the November Dezember November September market; with an average yield of 4.8%. Source: Thomson Datastream

Issue 116, Dezember 2010 27 Romania

Performance of the Romanian Stock Exchange Central Bank companies in Q3 The best performers in July-September remained companies whose exports account for a large share of sales, while the The solvency of the banking system in Romania pharmaceutical and oil sectors slowed down their growth sig- increased to 14, 6% in September nificantly. Analysts believe exporters on the Stock Exchange The solvency rate in the Romanian banking system increased stand the best chances of continuing to perform well, con- to 14.6% in September from 14.3% in June 2010, in com- sidering that there is still no Government endorsement for parison to September 2009 when it was at a level of 13.7%, investment projects on the Romanian market, and that the stated the first deputy governor of the National Bank of Roma- population’s income remains affected by cuts. nia, Mr. Florin Georgescu.

The cumulated turnovers of 65 of the leading Stock Exchange- “The solvency of banks is provided by stable and less resources listed companies went up by 12.6% in the third quarter of the such subordinated loans,” also stated Mr. Georgescu. year, to RON 9.3 bn, slightly lower than the decline recorded Accordingly, the banks have a solvency ratio above 10%, and in the first half of the year, of 13.9%. nearly two thirds (65%) of credit institutions solvency ratio The actual increase remains low, because of the around 8% between 12 and 14%. Mr. Georgescu, first deputy governor inflation. The biggest company on the market, OMV Petrom of the National Bank of Romania, declared that the Tier 1 ratio (SNP) boosted its sales by 6% to RON 4.8 bn, but posted (capital, reserves and profit) increased to 13.8% at the end losses. of September, from 10.6% in December 2007.

Metallurgy companies were the most dynamic in the July- Impact on investors August period, boosting their turnovers by an average 66% Romanian banks registered a good solvency ration in against the similar interval of 2009 amid export demand and 2010. amid price increases.

Impact on investors Analysis of the BSE companies performances in Q3 of 2010.

Written and edited by: Iuliana Manastireanu and: Andreea Albu GSS Account Manager GSS Account Manager Tel. +40 21 200 1494 · [email protected] Tel. +40 21 200 2678 · [email protected]

Issue 116, Dezember 2010 28

Russia

Investors buy shares according to government’s Market Capitalisation RUB 15.6trn privatization plan YTD Dev. of Market Capitalisation 5.0% Russian stock market volume reached record levels. Exces- sive demand of the part of Western and Russian investors Number of SE Transactions p.m. (MICEX) 9,255,451 showed securities of Sberbank and Rosneft, as well as other YTD Dev. of SE Transactions 3.0% companies and banks, which was mentioned in the future SE Turnover (MICEX) RUB 6.2trn privatization plan. Shares of “Transneft”, excluded from the Monthly Index Performance (RTS) 4.2% privatization list, fell in price by 5.7%. GDP per Capita (2010 in EUR) 8,072 Market participants explain the growing interest in the public GDP Real 2010 (Change against prev. year in %) 3.4 sector companies from the intensification of the privatization 3-Month Money Market Rate (current in %) 6.10 program. First Deputy Prime Minister, Igor Shuvalov, pre- Inflation in 2010 (yearly average in %) 6.7 sented new details about the future privatization program. EUR/RUB 41.33 Key details of the program were known before but formerly Upcoming Holidays 1, 10 January state representatives spoke about the program for three to four years of about USD 10 bn annually, while Shuvalov

Source: Bank Austria, National Statistics mentioned USD 60 bn in a period of five years. In addition, the list of companies was expanded by “Rostelecom”, “Aeroflot”

Actual 38 Day moving average 200 Day moving average and a number of transport assets. 1725

1600 Impact on Investors

1475 New statements concerning privatization plan provoked rally on Russian stoke exchange. 1350

1225

1100 Draft order that abolish necessity of disclosure of substation facts 975 Federal Financial Markets Service (FFMS) published the order 850 draft which shall allow small issuers to avoid the publication Jul Apr Jän Jun Mai Mär of substantial facts (Occurrence of corporate events or deci- August Februar Oktober sion of corporate actions which must be disclosed according November November Dezember September to legislation). Such issuers must have not more than 500 Source: Thomson Datastream shareholders.

According to FFMS the order shall provide the opportunity to thousands of companies, especially in regions, to simplify internal processes and avoid the pressure from FFMS fines threat.

Last year issuers published about 160,000 reports and this year according to the forecast of Interfax, the figure will be over 300,000.

Impact on Investors If draft order is adopted, small companies will be able not to disclose substantial facts.

Issue 116, Dezember 2010 29 Russia

The first foreign security allowed for placement in The head of the Russian representation of Nice UK Ltd, Russia Vyacheslav Morozov said that the monitoring system of FFMS The Federal Financial Markets Service (FFMS) for the first time is capable to process up to 10 mn bids per day, and more approved the placement in Russia of foreign security – the than 1.2 mn actual transactions made each day. sovereign bonds of the Republic of Belarus 01 and 02 series. Impact on Investors In accordance with the registered prospectus of securi- This implementation will increase market transparency and ties, placement and circulation of bonds of Belarus will be discipline. implemented on MICEX. Bonds are denominated in Russian rubles; both issues - Series 01 (RUB 7 bn) and Series 02 (RUB 8 bn) - have a maturity of two years. RTS plans IPO in 2011 RTS has announced plans to carry out an IPO next year. RTS Procedure for registration of prospectuses of securities of plans to place its shares in order to increase the capitaliza- foreign issuers and the admission of foreign securities to tion, as well as increasing the guarantee fund of depository, placement and public circulation on the territory of the Rus- clearing and settlement infrastructure in connection with the sian Federation were registered by the Justice Ministry in April proposed amendments in legislation and increasing trading this year. This document was the last step of the regulatory volume. In addition, attracted funds will be spent on business framework development for the placement of foreign securi- expansion in Russia and CIS countries and further develop- ties in Russia. ment of the RTS projects in Ukraine and Kazakhstan, as well as the launch of new exchange projects and products. “This is a pilot project. If it proves to be successful, we expect further placements, possibly from the same issuer, and, pos- It is unclear how the initiative of the RTS will be considered by sibly, issuers from other countries “, - the head of the FFMS FFMS which supports consolidation of the stock exchange emphasized. infrastructure. As IPO involves the expansion of the shareholders, this may hamper the possible process of a merger Impact on Investors of the RTS and MICEX. New instruments appeared on the Russian market. According to the Chairman of the RTS, Roman Goryunov, the stock exchange is considering of placing at least 20% of FFMS has implemented the monitoring system to the shares at the own floor. detect suspicious transactions on the stock market The new integrated monitoring system, introduced by FFMS, The Board of Directors of RTS approved the list of compa- already keeps track of suspicious transactions on the stock nies that will accompany further IPO in 2011. The issue of market, and this, according to the head of FFMS Vladimir stock exchange assessment would be solved through the Milovidov, will provide an opportunity to increase transpar- comparison with the Stock Exchanges of the Philippines or ency of the operations on the market. Kuwait. According to analytics, 20% of shares of RTS could cost USD 140-170 mn. The system operates on-line and daily monitors all transactions on the stock markets on the five main types of violations Upon the announcement of the IPO plans RTS shareholders that are a priority for FFMS. These include the manipulation have received an offer from MICEX to sell a 20% stake of the of prices, retention of prices, transactions without economic stock exchange at a price of USD 150 mn, and the remaining substance, insider trading and bogus bids. Upon finding a 80% stake to exchange for the shares of MICEX. The amount dubious deal, the system generates a special data card, of USD 150 mn was derived from a general assessment of which is sent to the newly created Department of FFMS to RTS’s capitalization of USD 750 mn. perform an analysis of the message. If an operation is recognized as unfair, FFMS has the right to tag or make a decision As noted by one member of the Board of Directors of RTS, to revoke the license of the participant. “We can make any MICEX offer says that after the completion of the transaction decision, but should be ready to prove it in court”, - Vladimir a “relatively” independent existence of the stock exchanges Milovidov said, noting that the investigation process may last is expected for several years. The consolidation of stock up to several months. exchange infrastructure was provided by the government strategy of promoting the financial market to 2020. As of the monitoring system, it has been developed on the basis of a software company NICE Actimize, which is already The representative of FFMS noted that the acquisition of used by the financial regulators of the Netherlands and the one of the exchanges by another conforms to the strategy UK, as well as many international banks. of financial market development.

Impact on Investors Development of securities market infrastructure.

Issue 116, Dezember 2010 30 Russia

FFMS has prepared a draft order on disclosure of Profile Committee of the State Duma supported information of technical failures on stock exchanges law draft on equality of shareholders in receiving According to the draft order on the disclosure of information dividends of technical failures on the platforms of stock exchanges, The State Duma Committee on Property recommended the in case of technical failures during the trading the stock adoption of the draft law on equality of all shareholders in exchange will be obliged to disclose this information on its terms of dividend pay date in the second reading. Internet site within at least 5 minutes after occurrence. The draft law amends Article 42 of the Federal Law “On In the case of trading cessation caused by a technical failure, Joint Stock Companies”, providing the obligation of the joint the stock exchange is obligated to disclose on the site infor- stock company to pay dividends at the same time to all mation about the exact time of trading resumption and the holders of shares of the relevant category (type), as well as time period, during which trade participants may withdraw legally prohibiting the company to provide benefits on terms an application for transactions, but not less than 30 minutes of payments of dividends among the holders of shares of prior to the moment of trading resumption. Meanwhile, the one class (type). time period during which trade participants may withdraw an application for transactions must be at least 10 minutes According to the current edition of the Law, the date and prior to the resumption of trading. Simultaneously, the stock manner of payment of dividends are determined by the com- exchange sends a notification to FFMS with information on pany’s charter or by the general meeting of shareholders, but the failure. if the company’s charter date does not define payment of dividends, the term of payment should not exceed 60 days Whilst implementing or upgrading computers, hardware and from the date of adoption of the decision to pay dividends. software (trading facilities), the stock exchange is obligated It often means that the issuer company can pay dividends to prepare the schedule of their implementation or upgrade, within some period of time and the shareholders of one cat- and test trading facilities. egory can receive dividends on different dates.

If failures were found in the implementation of trading facili- Impact on Investors ties, the stock exchange is obligated to disclose information Possible further adoption of the draft law will legally define on the site at least 15 minutes prior to trading. When trading equality of shareholders and implementation of a single facilities are put into operation, the stock market should lead pay date concept on the Russian market. them to a working state of at least two hours before the start of trading.

Additionally, the stock exchange has to establish a technical committee which organizes the testing of implemented or upgraded trading facilities.

Impact on Investors The regulation of stock exchange market in the issues of technical failures on trading floors.

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

Issue 116, Dezember 2010 31

Serbia

Gross Domestic Product Growth Revision Market Capitalisation RSD 939.3bn The European Bank for Reconstruction and Development YTD Dev. of Market Capitalisation 7.4% (EBRD) has revised Serbia’s Gross Domestic Product (GDP) expansion forecast for 2010 in its updated economic outlook. Number of SE Transactions p.m. 150,209 The revision has downsized previous growth forecast from YTD Dev. of SE Transactions 4,210.2% 1.9% to 1.6%. EBRD has announced in July 2010 its 2011 SE Turnover (Belgrade SE) RSD 3.8bn GDP growth forecast for Serbia to be 3%, but has amended Monthly Index Performance (Belex 15) 2.4% it in its latest economic outlook to 2.9%. GDP per Capita (2010 in EUR) 4,128 EBRD has projected 0.6% growth in 2010 and expansion GDP Real 2010 (Change against prev. year in %) 1.5 to 1.6% in 2011, for the entire Southeast European region, 3-Month Money Market Rate (current in %) 12.70 including Albania, Bosnian Federation, Bulgaria, Macedo- Inflation in 2010 (yearly average in %) 5.8 nia, Montenegro and Romania. EBRD notes that regional EUR/RSD 115.00 exports are rapidly increasing in most countries, while domes- Upcoming Holidays none tic demand development remains slow, while most of the countries from the region face fiscal issues.

Source: Bank Austria, National Statistics EBRD report also states that Greek crisis spillover possibility

900 Actual 38 Day moving average 200 Day moving average was contained, but that there is enough potential for such scenario that would affect regional economies, should the 850 crisis in Greece worsen. 800

750 Impact on investors EBRD revises Serbia’s GDP growth projection as well as 700 SEE region forecast. 650

600 Inflation Target Revision The International Monetary Fund (IMF) has advised the 550 National Bank of Serbia (NBS) to increase target inflation Jul Apr Jän Jun Mai Mär forecast for 2011 to 4.5% plus/minus 1.5% to 6% plus/minus August Oktober

November Dezember November 2%, during the last meeting with Serbian officials, held in September

Source: Bloomberg Belgrade at the sixth revision of the EUR 2.9 bn stand-by arrangement with the IMF.

The IMF advised the hike of predicted inflation rates, explain- ing that it would be better to set an achievable inflation forecast for 2011, then to compromise the NBS integrity. It was previously mentioned that 2010 inflation forecast of 6% plus/ minus 2% will be breached.

Impact on investors IMF advises Serbian C-Bank to lift 2011 inflation target band.

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

Issue 116, Dezember 2010 32

Slovak Republic

Bratislava Stock Exchange Trading in October Market Capitalisation EUR 28.1bn In the month of October 2010, the electronic trading system YTD Dev. of Market Capitalisation 18.1% of the Bratislava Stock Exchange (BSSE) was accessible to members in 21 business days. A total of 725 transac- Number of SE Transactions p.m. 725.0 tions were concluded in this period, in a financial volume YTD Dev. of SE Transactions 59.0% of EUR 677.07 mn. In comparison with the previous month SE Turnover (Bratislava SE) EUR 0.7bn the volume rose by 13.94% and the number of transactions Monthly Index Performance (SAX/BSSE) -6.5% increased by 25.43%. A year-on-year comparison shows a GDP per Capita (2010 in EUR) 12,217 decline in trading volume (-37.96%), with noticeable increase GDP Real 2010 (Change against prev. year in %) 4.3 in the number of concluded transactions (+145.76%). In terms of transaction structure, the month of October 2010 3-Month Money Market Rate (current in %) n.a. was no different to previous periods. Negotiated deals again Inflation in 2010 (yearly average in %) 1.2 dominated over electronic order book (i.e. price-setting) EUR/SKK n.a. transactions, with the former representing 99.50% of the Upcoming Holidays 24 December total trading volume. A total of 188 negotiated deals in a volume of EUR 673.79 mn were concluded, as opposed to Source: Bank Austria, National Statistics 563 electronic order book transactions in a financial volume of EUR 3.29 mn. Actual 38 Day moving average 200 Day moving average 350 Investors in October 2010 continued to focus on debt securi- 325 ties, as bond transactions generated as much as 92.96% of the achieved volume. A total of 162 bond transactions were 300 concluded in the period under review, in which 404,979,842 275 units of securities were traded in a volume exceeding EUR 250 670.63 mn. The volume of traded securities rose against

225 the previous month by 21.41%, while the number of transactions fell by 8.47%. The volume as well as the number of 200 transactions decreased on a year-on-year basis (-40.39% 175 and -19.25%). Negotiated deals in bonds (in a volume of Jul Apr Jän Jun Mai Mär EUR 668.66 mn) continued to dominate over electronic order August Februar Oktober book transactions (EUR 1.98 mn). November November Dezember September

Source: Thomson Datastream Equity securities of local companies were bought and sold in 563 transactions, in a financial volume of EUR 6.44 mn. It is an 84.61% decrease in volume and a 40.40% increase in the number of transactions. The volume also decreased in a year-on-year comparison by 59.89%, whereas the number of transactions rose by 235.12%. Negotiated deals in the share issue of Best Hotel Properties generated a substantial part of the volume of share transactions (i.e. 97.49%) in October 2010.

Issue 116, Dezember 2010 33 Slovak Republic

A total of 5,226 transactions, in a financial volume of EUR Changes to the value added tax act 5.91 bn, have been cumulatively concluded on the BSSE The Slovak Coalition Council has agreed upon the follow- since the start of this year. It is a 38.32% decline against the ing temporary changes to the Value Added Tax Act, which, same period of last year. Transactions concluded by non- subject to being adopted by the Parliament, will become residents in October 2010 represent 48.17% of the total applicable on 01 January 2011: trading volume. ■■The basic value added tax (VAT) rate will increase from As of the last trading day of the month of October 2010, the the current 19 to 20 %; market capitalisation of equity securities recorded a 5.60% decrease on a month-on-previous-month basis to EUR 3.07 ■■Medication, books and selected medical aids will remain bn. The market capitalisation of bonds amounted to EUR subject to the reduced rate of 10%; 25.01 bn, representing a 9.26% increase on a month-on- ■■ previous-month basis. The reduced rate of 6 % for farm-gate sale will be abolished. The SAX index ended the month of October 2010 at 217.49 points, representing a 6.45% decrease on a month-on-pre- The changed VAT rates will remain applicable until the public vious-month basis and a 21.31% decrease year on year. finance deficit falls under 3% of the gross domestic product. This should be achieved in 2013.

Impact on investors Although VAT on custody services is directly charged to resi- BSSE performance in October 2010. dents only, this change shall have a minor impact on foreign clients as well. In fact, VAT is charged to foreign clients as a part of CSD fees, which are being re-invoiced to clients in a full amount if so agreed. CSD fees will be subject to 20% VAT from 2011.

Impact on investors Amendment to the VAT Act is now in a commenting stage. It has been approved by the Slovak Parliament in the first reading. The second reading is scheduled for the end of November. If approved by the Parliament and the Presi- dent, proposed changes will become effective as of 2011.

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

Issue 116, Dezember 2010 34

Slovenia

Termination of index LJSEX and lifting of restriction Market Capitalisation EUR 20.7mn on the Entry Market YTD Dev. of Market Capitalisation 2.6% Ljubljana Stock Exchange published two measures related to operating the stock market that it has adopted and which Number of SE Transactions p.m. 10,213 took effect on 15 October 2010: YTD Dev. of SE Transactions 1.0% SE Turnover (Ljubljana SE) EUR 33.0mn 1. Termination of Ljubljana Stock Exchange (LJSE) Monthly Index Performance (SBI 20) -19.5% Composite (LJSEX) – Since SBI TOP became LJSE’s GDP per Capita (2010 in EUR) 17,813 benchmark and tradable index, the index LJSEX has lost its informative and applied value. LJSE therefore stopped GDP Real 2010 (Change against prev. year in %) 1.2 calculating LJSEX on 15 October 2010. 3-Month Money Market Rate (current in %) 1.00 Inflation in 2010 (yearly average in %) 2.0 2. Lifting of fixed restriction on the equities Entry Upcoming Holidays none Market – Due to major market imbalances LJSE had temporarily restricted the daily price movement restriction

Source: Bank Austria, National Statistics on this market segment to 20%. Market conditions have since been stable for a longer term, which has facilitated

Actual 38 Day moving average 200 Day moving average efficient market price formation. The price movement 4800 restriction started with 15 October 2010.

4500 Impact on investors 4200 Termination of index LJSEX and temporary restriction of

3900 the daily price movement restriction on Entry Market.

3600 Amended requirements for account opening are 3300 changed due to new list of countries entitled for 3000 simplified procedure Jul Apr Jän Jun Mai Mär The Office for Money Laundering Prevention published the August Februar Oktober List of Countries with Strong Likelihood of Appearance of November November Dezember September Money Laundering or Terrorist Financing at the end of Sep- Source: Thomson Datastream tember 2010 on their web page: http://www.uppd.gov.si/si/ vsebinska_podrocja/seznam_drzav/.

After receipt of additional explanation, UniCredit Banka Slov- enija d.d. amended the Account Opening Requirements. Financial institutions or listed companies from following countries are not entitled for simplified account opening procedure any more: Cyprus, Lichtenstein, Singapore, Netherlands’ Antilles and Aruba. Please find attached amended Account Opening Requirements.

Impact on investors Amended requirements for account opening in Slovenia.

Issue 116, Dezember 2010 35 Slovenia

Amended Banking Act implemented EU Directives IMF Downgrades Slovenia’s Economic Growth for 2009/111/EC, 2009/14/EC and partly 94/19/EC 2010 The amended Banking Act was published in the Official The International Monetary Fund (IMF) downgraded its projec- Gazette nr. 79/2010 on 8 October 2010, and is valid from tions for Slovenia’s economic growth for year 2010 by 0.3 11 October 2010 and applicable from 31 December 2010. percentage points to 0.8% on 6 October 2010. It meanwhile improved its projections for 2011 from 2% to 2.4%. The main changes in the amended act are: The IMF predicted a 1.1% growth for Slovenia for 2010 and a 1. Implementation of Directive 2009/11/EC with the inten- 2% growth for 2011 in its April report. In 2009, the Slovenian tion to strengthen the stability of the banking system, economy shrank by 7.8%. Inflation should reach 1.5% this decrease risk exposure and improve the supervision of year and 2.3% next year. The current account deficit, which affiliated banks. The nature of hybrid instruments which last year stood at 1.5% of GDP, will be halved to 0.7% of are taken into equity calculation is defined. The definition GDP in 2010 and 2011. of connected persons is extended and credit exposure against credit and investment institutions is limited to 25% The unemployment rate, standing at 6% in 2009, will increase of equity. The requirements for the cooperation of the to 7.8% this year and rise to 8.1% in 2011, according to the Slovene Central Bank with the Committee of European latest IMF report. Banking supervisors are set. The IMF predicts a 4.8% growth of the global economy for 2. Implementation of Directive 2009/14/ec and Directive 2010 and a 4.2% growth for 2011. The emerging economies 94/19/EC, with the intention to increase the amount of will record a 7.1% growth, while the developed countries will guaranteed deposits and shorten the period for payment. grow at a 2.7% rate. The amount of the guaranteed deposits of legal or natural persons is increased from EUR 50.000 to EUR 100.000. Impact on investors Banks and other financial institutions deposits are exempt IMF downgraded Slovenia´s economic growth for 2010 to from the guarantee scheme. In a case Slovene banks are 0.8%. not able to assure assets for the payment of guarantee deposits up to the due date for payment, the Republic of Slovenia is obliged to temporarily provide the required assets.

Impact on investors Amended Banking Act will strengthen the stability of the banking system, decrease risk exposure and improve the supervision of affiliated banks.

Written and edited by: Barbara Zajc Senior Relationship Manager Tel. +386 1 5876 453 · [email protected]

Issue 116, Dezember 2010 36

Ukraine

IMF mission approved a first review of stand-by- Market Capitalisation UAH 219.4bn program for Ukraine YTD Dev. of Market Capitalisation 6.6% Experts from the International Monetary Fund (IMF) have approved the first review of the IMF-Ukraine Stand-By Number of SE Transactions p.m. 49,795 Arrangement (SBA) under which Kyiv hopes to receive a YTD Dev. of SE Transactions 659.0% second loan tranche of about USD 1.6 bn. SE Turnover (PFTS) UAH 5.4bn Monthly Index Performance (PFTS) -5.2% According to IMF Mission Chief for Ukraine Thanos Arvanitis, GDP per Capita (2010 in EUR) 2,312 the IMF mission has reached staff-level agreement with the Ukrainian authorities on the conclusion of the first review GDP Real 2010 (Change against prev. year in %) 3.5 under the SBA. The authorities‘ Letter of Intent will now be 3-Month Money Market Rate (current in %) 7.50 submitted to IMF Management. It is expected that following Inflation in 2010 (yearly average in %) 9.2 the completion of prior actions by the authorities, the Execu- EUR/UAH 10.61 tive Board will consider the review before the end of the year. Upcoming Holidays none Mr. Arvanitis noted that the completion of the review would release SDR 1 bn (about USD 1.6 bn), of which $1 bn would Source: Bank Austria, National Statistics be provided for state budget support. He also pointed out, that Ukraine‘s performance under the SBA has been broadly Actual 38 Day moving average 200 Day moving average 6500 in line with program objectives. All end-September quantita- tive performance criteria were met and steady progress was 5750 made on structural reforms.

5000 The IMF in late July approved SBA worth SDR 10 bn (about 4250 USD 15.8 bn) to support Ukraine‘s economic reforms pro-

3500 gram. Kyiv has already received the first tranche, worth SDR 1.25 bn, of which the Ukrainian cabinet was allocated USD 2750 1 bn.

2000 Jul Apr Jän Jun Mai Mär Impact on investors August Februar Oktober IMF mission approved a first review of stand-by-program November Dezember November September for Ukraine. Source: Thomson Datastream

Issue 116, Dezember 2010 37 Ukraine

President of Ukraine signs the law on electronic registration of companies The president of Ukraine Viktor Yanukovych has signed a law stipulating the procedure for conducting the electronic registration of companies and individuals in the Ukraine.

According to the law, a state registrar in an administrative and territorial unit will register electronic documents submitted by applicants and send back confirmation of the receipt of the documents, carry out necessary registration actions in cases stipulated by the law and send corresponding documents in electronic- and paper-form to applicants.

A special agency for state registration will work out and post on its official Web site all the necessary information on the electronic form of primary documents and programs for issuing and submitting the documents for the electronic registration of businesses. The law will come into force nine months after its publication.

Source: Interfax -Ukraine

Impact on investors President of Ukraine signs the law on electronic registration of companies.

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

Issue 116, Dezember 2010 38

Your Contacts

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

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Issue 116, Dezember 2010 39 Your Contacts

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

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

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

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

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

Issue 116, Dezember 2010 40 Your Contacts

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

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

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

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

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

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

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

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

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

Issue 116, Dezember 2010 41

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 116, Dezember 2010 42

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 116, Dezember 2010