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21 21 February,February, 2002006, 6, KyivKyiv

Financing of LeasesFinancing of Leases

International Conference «Banking Sector and Leasing Market Business and State Regulation»

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Full name Open Joint stock Company “Vseukrainsky Aktsionerny Bank”

Short name JSC VABank Founding date July 2, 1992 License №35 of 03.12.2001 Auditor Deloitte&Touche Rating among Ukrainian banks* 18 largest (by assets)

14 largest (by capital)

15 largest (credit portfolio)Moody’s Rating Е+ (financial strength rating)

B2/NP (foreign currency deposits)

Stable outlooks

*According to Ukrainian Banking Association as of 31/12/2005

Basic Facts about VABank

Shareholders December 23, 2005 the Bank registered with the NBU its 18th issue of stock, as a result of which its equity grew to 110.6 mln. UAH.

Company TBIF Financial Services BV purchased 9.55% stake in VABank

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mln. UAH. 2003 2004 2005

Assets 961,7 1 293,7 3 000,9

Loans 584,2 617,6 1 226,3

Customers’ accounts 519,3 857,3 1 306,3

Capital 52,5 52,5 110,2

Profit 4,636 8,016 15,1

611

962

1 294

2 351

31.12.2002 31.12.2003 31.12.2004 31.12.2005

90109 119

346

31.12.2002 31.12.2003 31.12.2004 31.12.2005

Growth of Assets, mln. UAHGrowth of Capital, mln. UAH.

+82%+191%

Assets and capital of VABank were growing in 2005 much faster than the banking system overall

Dynamics of Financial Performance Indicators

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HQ in Kyiv

65 offices and branches 1180 staff Representation office in Budapest (Hungary) 129 ATMs

Operating offices and branches

Planned for opening in 2006

Plan for 2006 150 offices and branches subsidiaries in all oblast capitals of Ukraine 210 ATMs

Regional Network of VABank

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LEASING

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Financing of Leases

JSC VABank has vast experience of financing leasing programs.

Within the framework of cooperation with one of the largest leasing companies, in 2005, VABank financed purchase for subsequent leasing of over 100 cars worth of 11,572,700 UAH.

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Decision made Analysis of borrower-lessor’s creditworthiness

Main components:

I. Assessment of borrower’s (leasing company’s) financial standing.II. Appraisal of the management team.III. Leasing company’s market position vis-à-vis competition.IV. Security (collateral).V. Sources of loan repayment.

Decision Making Process

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Interaction Pattern

Selection of clients :

- financial analysis of operations;

- due diligence of legal documents and authorities of management team;

- client’s reputation appraisal with help of internal security service.

Funds on credit line are disbursed in the form of tranches after lessor presents to the bank leasing agreements with lessees and leased assets purchase contracts.

Credit line is repaid according to the repayment schedule at the cost of leasing payments receipt under financial leasing agreements.

1After opening of a credit line, the leasing company approaches lessees in order to find most suitable clients for the implementation of the project.

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3

4

Interaction of JSC VABank with leasing company-borrower:

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Lease Enforcement Flow Chart

Supplier

LesseeLeasing company

JSC VABANK

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2 45

3

6

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Lease Enforcement Outline

STEP 1: Closing of lease agreement

STEP 2: Signing of leased asset supply contract

STEP 3: Filing with the Bank of a loan application; disbursal of funds by the Bank to the lessor’s account

STEP 4: Payment for leased asset, shipment and registration, accepting to the balance sheet; execution of insurance policy for the leased asset

STEP 5: Provision of collateral

STEP 6: Transfer of the leased asset to the lessee

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Structure of Financing through Leasing

Decisions on financing assets referred to in lines 2-4 are made on a case-by-case basis due to their special purpose nature and limited liquidity.

Financing of cars by JSC VABank:

Pricing category of car Prepayment

< 25 000 USD 15%

> 25 000 USD 20%

Assets Prepayment

Loan Maturity

1 Automobiles 15-30% Maximum 5 years

2 Highly depreciable special equipment 20-30% 3-4 years

3 Locomotives 20% 5 years

4 Farming equipment 20-30% 5 years

A separate category is made up for cars manufactured in CIS countries, with preferable amount of prepayment equal to 25-30% of the asset value (due to rapid loss of liquidity).

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In addition to finacing, leasing companies are provided with the full range of insurance

services from

Insurance company Leader.

Insurance

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JSC VABankFirst Kyiv Branch,Kyiv, 36, Degtyarevska street.Aleksandr Nezola, Credit and Factoring Department. Tel./fax: (044) 490-06-94www.vabank.ua

CONTACTS

Thank you!