GSS NEWSLETTER · EBRD launches 2010-2013 strategy for Bosnia and Herzegovina 12 IFC and SASE...

GSSNEWSLETTERISSUE 116Dezember 2010

Issue 116, Dezember 2010

2

CoNTENTDEaR CLIENTS 4HR aNNoUNCEmENT 6JoHN'S CoRNER 7aUSTRIa 8Facts on Austria and Its Banks 8

BELaRUS 10UniCredit Bank credited companies of Belarus for more than USD 200 mn 10Changes in Tax Code of Belarus have been adopted 11Additional preferences for investors included in the new edition of the Investment Code of Belarus 11

BoSNIa aND HERzEGovINa 12EBRD launches 2010-2013 strategy for Bosnia and Herzegovina 12IFC and SASE conference “Going public” 13

BULGaRIa 14FSC Initiative to Review the Rules and Procedures of the Central Depository and the Bulgarian Stock Exchange 14Financial Supervision Commission Drafts New Tariff 15Bulgarian Stock Exchange and Belgrade Stock Exchange Sign Memorandum of Cooperation 15Global Finance Award Ceremony: UniCredit Bulbank is Best Bank in Bulgaria 15

CRoaTIa 16Higher crisis tax rate on all incomes abolished 16Government transferring its HT shares to pensioners’ fund 16HPB supervisory board approves recapitalisation 17

CzECH REpUBLIC 18C EZ again generates highest profit for owners in 2009 18Start of Trading with Fortuna Share Issue 19

HUNGaRy 20Increased Activity of Foreign Investors at the Budapest Stock Exchange 20Hungarian Government to Announce Structural Reforms in February 21

KazaKHSTaN 22Trades results at KASE 22

KyRGyzSTaN 23Parliamentary elections in Kyrgyzstan ‘beginning of new government’ – Otunbayeva 23


3

poLaND 24Polish NDS is opening operational link with the Lithuanian market 24WSE shares debuted on the Warsaw Stock Exchange 25

RomaNIa 26Economy 26Romania’s Finance Ministry gets EUR 1.31 bn from the market, with an average yield of 4.8% 26Performance of the Romanian Stock Exchange companies in Q3 27Central Bank 27The solvency of the banking system in Romania increased to 14, 6% in September 27

RUSSIa 28Investors buy shares according to government’s privatization plan 28Draft order that abolish necessity of disclosure of substation facts 28The first foreign security allowed for placement in Russia 29FFMS has implemented the monitoring system to detect suspicious transactions on the stock market 29RTS plans IPO in 2011 29FFMS has prepared a draft order on disclosure of information of technical failures on stock exchanges 30Profile Committee of the State Duma supported law draft on equality of shareholders in receiving dividends 30

SERBIa 31Gross Domestic Product Growth Revision 31Inflation Target Revision 31

SLovaK REpUBLIC 32Bratislava Stock Exchange Trading in October 32Changes to the value added tax act 33

SLovENIa 34Termination of index LJSEX and lifting of restriction on the Entry Market 34Amended requirements for account opening are changed due to new list of countries entitled for simplified procedure 34Amended Banking Act implemented EU Directives 2009/111/EC, 2009/14/EC and partly 94/19/EC 35IMF Downgrades Slovenia’s Economic Growth for 2010 35

UKRaINE 36IMF mission approved a first review of stand-by-program for Ukraine 36President of Ukraine signs the law on electronic registration of companies 37

yoUR CoNTaCTS 38DISCLaImER 41ImpRINT 42


4

DEaR CLIENTS

Bohdana Yefremova (Head of GSS Ukraine)

I am particularly happy and excited to open the Decem-ber issue of our Newsletter, as it gives me a chance to congratulate you with the upcoming winter holidays. Let me heartily wish you all health, prosperity and happiness in the New Year. My team and I are looking forward to fruitful cooperation with you in the future. May new ideas, inspiration, and opportunities continue to make our busi-ness mutually-beneficial and our cooperation productive. The Year 2010 has been rich in developments for the Ukrainian market, and some of the most influential ones will be presented in this release from the perspective of our local GSS team.29 October2010 is the cut-off date stipulated by the Law “On joint stock companies” dated 17 April 2008 for Ukrainian companies to complete dematerialization of their shares. This process, which started in September 2008, developed into full range this year. The companies, which were pressed by the deadline, rushed into dematerialization. In Ukraine, his-torically a vast majority of shares was issued in documentary form, with the registrars being responsible for recording the ownership rights. Now, the companies had to choose one out of two depositories and a custodian, where the shareholders would hold their dematerialized shares.

Dematerialization shall positively influence the local stock market, since it will shift all settlement processes to the depositories, thus making them more efficient, less risky, less time- and efforts- consuming. In addition, such shares will be eligible for modern technologies offered by the depositories and stock exchanges.

Another positive result of dematerialization is that it also urged the depositories, National Depository of Ukraine (NDU) and All-Ukrainian Securities Depository (AUSD), to establish func-tional correspondent relations. In the situation, when the issuer placed the global certificate with NDU, while, histori-cally, 80% of shares are in the AUSD depository, this was the only way to enable settlements in respective securities. In July, the Parliament issued a law obliging the depositories to establish fully-fledged correspondent relations. This was a good motivation for NDU and AUSD to start cooperating.

Still, the level of dematerialization is quite low, some more than 10% of the issuers have completed their dematerializa-tion on time. However, in terms of the absolute numbers, this constitutes more than 2000 companies out of over 25000 issuers. When speaking of the companies attractive to inves-tors one can say that the majority of these companies have already undergone dematerialization or are now at its final stage.

Now the Securities and Stock Market State Commission of Ukraine (SSMSC) has to demonstrate the willingness to enforce the companies which did not comply within the speci-fied term. Certain steps were taken without delay: the SSMSC issued a letter providing such companies with the grace period of 6 months to comply. Financial and other sanctions will later be imposed on those companies, which did not take the necessary measures. The register of shares of persistent violators will be frozen. This will block any movements with such securities.


5 Dear Clients

There are many other positive changes to come in the future in connection with the “Law on joint stock companies”. The directive envisaged some essential changes regulating the procedures and activities of joint-stock companies, intro-ducing progressive and modern mechanisms coherent with the best principles of world corporate governance. Most important, the new Law removed a majority of deficiencies that existed in the current legislation. The new provisions, governing the protection of shareholder rights, information disclosure, decision making and prevention of abusive trans-actions by the executives, are all progressive innovations making operations of Ukrainian joint-stock companies more consistent with those of their counterparts in the mature economies, and, as such, elevating the transparency and investment attractiveness of the Ukrainian markets in general.

The charters and internal regulations of existing joint-stock companies shall be made compliant with the new require-ments within two years, until 30 April 2011. Hence, the proc-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.

We realize that adherence to the modern-style corporate culture in practice is a gradual process, which will continue after 30 April 2011. This is because the changes need to take place not only on paper but also, which is more important, in people’s minds. Accordingly, we anticipate a lot of work to be done at the local level in order to bring these changes to life. Furthermore, we see our important role, as a Ukrain-ian market participant and, at the same time, a member of a multi-national GSS network, in these processes. This may be active interaction with the local issuers, informing them of the needs of investors and internationally accepted market practices. Since our entrance into the Ukrainian market in September 1999, we have considered our goal in bringing the Western experience in securities services to the local market. Now, our input in the processes aimed at the trans-formation of corporate culture in Ukraine is an important step in fulfilling this goal.

Best regards,

Bohdana YefremovaHead of GSS Ukraine

Olga Yuschenko


6

DEaR CLIENTS

Olga Yuschenko

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 occu-pied 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 YefremovaHead of GSS Ukraine

Bohdana Yefremova (Head of GSS Ukraine)


7

JoHN'S CoRNER

John Gubert

Sibos in Amsterdam was a useful place to reflect on the benefits that Swift has brought to the securities world. From a sub-custodian perspective, standard messages for core data flow between the global community and the sub has been vital. Those messages have enabled greater automa-tion and reduced risk.

But Swift is now extending its reach, especially with the new ISO 20022 suite of messages. It still has limitations. Its reach into the asset management population is light especially in emerging markets. It may have traction with the large global broker dealers, but fails to penetrate local brokerage com-munities. Furthermore, although it is increasing its reach into infrastructure, the progress is slow as it needs to strike when there is a major re-engineering of markets.

But that is what is happening at the moment and so Swift and Swift users have an undoubted opportunity to reduce risk, reduce cost and increase the robustness of market infrastructures. The changes are two-fold. On the one hand there are the major industry developments such as T2S, exchange mergers or CCP launches. On the other hand, there is regulatory change such as the demand for secu-rities data repositories, greater transparency or enhanced corporate governance.

In a world where there are new messages demanded, Swift has an invaluable tool in the ISO 20022 suite. Moreover, a 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 one business model which is supported by the industry, the bridging between different standards is radically simplified.

This is opening up links with XML, FIX and other standards. It is also paving the way for major developments in the world of CCPs, collateral management and funds. On the CCP side, Swift is piloting early next year a standard message set enabling consistent communication between clearing mem-bers and their CCPs. On the collateral management front, SWIFT have created ISO 20022 standards from data flows agreed with the industry and these are going into pilot with roll out targeted for March. On the funds side, there is good support for new messages in the admittedly relatively narrow field of subscriptions and redemptions. However, given the high potential financial and reputational risk of error in this area, the scale of usage will always understate the value for users of automation and standardisation of these functions.

The extension of the remit of Swift automatically leads to exaggerated hopes for radically lower cost and potential dis-intermediation of local agents. But no agent currently operates simply as a result of their ability to translate one message into another. Service is much broader than this. Automation and standardisation allows cost reduction; more importantly it reduces error and the scale of operating losses. In short it improves service quality.

Agents gain opportunity as markets open to new investors. The recent work on message standards is as important as the creation of the original MT5** series and that has been a major facilitator in the opening up of global markets.

John Gubert


8

aUSTRIa

Facts on Austria and Its BanksFollowing the CEBS stress test the Austrian National Bank (OeNB) produced a fact sheet on Austrian Banks and their commitment in Central, Eastern and southeastern Europe (CESEE):

■■ CESEE is a long-term growth market for bank services and therefore offers good prospects for Austrian banks.

■■ Economic developments have been very diverse in CE-SEE; after 20 years of transformation, the countries do not represent a homogeneous economic region.

■■ In the long term, after the end of the current global finan-cial crisis, CESEE will be the region with the best growth prospects in Europe. After an average growth of 1.5% in 2010, the growth advantage of the 10 EU-member states will restore their growth edge over the Euro area countries until 2015 and will amount to around 2 percentage points.

■■ Austrian banks’ exposure to CESEE is significant (EUR 212 bn as on 30 June 2010), but regionally well diversified and mostly locally financed. As a result, the money market dependence of Austrian banks’ subsidiaries is small.

■■ Austrian banks’ total international exposure (141% of GDP) is still low relative to other countries (Swiss banks: 300% of the national GDP), despite its claims on CESEE countries.

■■ According to the strong focus of Austrian banks on Eu-ropean growing regions in CESEE they are marginally exposed to markets that are currently facing difficult condi-tions, like Greece (0.5% of Austrian banks’ foreign claims) 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.

Market Capitalisation EUR 78.2bn

YTD Dev. of Market Capitalisation 5.2%

Number of SE Transactions p.m. n.a.

YTD Dev. of SE Transactions n.a.

SE Turnover (Vienna SE) EUR 2.3bn

Monthly Index Performance (ATX/VSE) -5.9%

GDP per Capita (2010 in EUR) 33,717

GDP Real 2010 (Change against prev. year in %) 1.6

3-Month Money Market Rate (current in %) 1.00

Inflation in 2010 (yearly average in %) 1.8

Upcoming Holidays none

Source: Thomson Datastream

Source: Bank Austria, National Statistics

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Actual 38 Day moving average 200 Day moving average


9 Austria

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

■■ 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 im-provement 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 lead-ing 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.


10

Market Capitalisation USD 12.0bn

YTD Dev. of Market Capitalisation n.a.

Number of SE Transactions p.m. (BCSE) 1,293

YTD Dev. of SE Transactions 19.9%

SE Turnover (BCSE) BYR 1,631bn

Monthly Index Performance (BCSE) 4.3%

GDP per Capita (2010 in EUR) 396


3-Month Money Market Rate (current in %) n.a.


BYR/EUR 0.00024

Upcoming Holidays 1, 7 January


BELaRUS

UniCredit Bank credited companies of Belarus for more than USD 200 mnAt the end of September 2010 the representation office of UniCredit Bank Moscow in the Republic of Belarus has reviewed 3 years activity in the country. During this time, the Belarusian enterprises and companies were credited for more than USD 200 mn by UniCredit Bank. The main customers are enterprises of the Belarusian power engineering, mechan-ical engineering, petrochemical trade. Representation office assisted the Belarusian corporate clients in attracting financial resources provided by the parent bank and shareholders, as well as supporting Russian, Italian, Austrian, German and other clients of UniCredit Group, interested in working with Belarusian partners.

“Derived experience of UniCredit Bank on the Belarusian enterprise market has confirmed the correctness of the, by 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.


11 Belarus

Changes in Tax Code of Belarus have been adoptedDuring 2010 the complex task of simplifying the tax system of Belarus was done taking into consideration the opinion of business.

The changes are made on three main areas:

■■ Reduction of the number of applicable taxes, which shall reduce the tax burden on the economy;

■■ Reduction of the frequency of paying taxes and filing tax returns. This shall reduce the time and labor costs of the taxpayer;

■■ Improvement of mechanism of collecting the main taxes and expanded investment benefits.

Starting from 2011, two local taxes are abolished – the col-lection on the development of territories and the local tax on services.

In addition, to address issues of investment activity starting from 2011 main investment benefits in the tax legislation will 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 con-tribute to investment growth of economy.

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

Additional preferences for investors included in the new edition of the Investment Code of BelarusDeputy Minister of Economy of Belarus, Vladimir Adashkev-ich, commented on the new edition of the Investment Code of Belarus in Minsk at XI International Conference “Problems of Forecasting and State Regulation of socio-economic devel-opment”. According to Mr. Adashkevich, additional prefer-ences shall be provided to investors in Investment Code, which is currently undergoing approval. “We also look for-ward to the adoption of the Directive N°- 4 on liberalization of the Belarusian economy” - said the deputy minister, adding that its adoption is expected shortly. Vladimir Adashkevich expressed confidence that these actions will become a seri-ous impulse to expand the investor base in Belarus. Further-more, according to him, the increase of investment in fixed assets amounted to about 10% during first 9 months of this year over the same period last year.

Impact on investors: Planned adoption of Investment Code will favour invest-ment attraction of Belarus.

mailto:mailto


12

BoSNIa aND HERzEGovINa

EBRD launches 2010-2013 strategy for Bosnia and HerzegovinaThe EBRD’s Board of Directors has approved a new strat-egy for Bosnia and Herzegovina that sets out priorities for the Bank’s activity in the country until 2013. The focus over the next three years will remain on financing and supporting projects in infrastructure and energy, financial and industrial and key export-oriented sectors.

To mitigate the global crisis impact on the country, the Bank acknowledges the need for an expanded level of activities in the coming years, both as crisis response and in support of the recovery process. The Bank will promote transition in Bosnia and Herzegovina by continuing and enhancing its efforts through the provision of financing and through intensive policy dialogue.

According to the new country strategy, the EBRD will devote its efforts to supporting development and implementation of a comprehensive reform program in all infrastructure sectors. In particular, the Bank will provide support both for construction 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.

In the energy area, the EBRD will continue to promote sector reform, institution building, regional energy integration, help-ing to enhance reliability and compliance with the EU emis-sion standards. Investment for energy efficiency and renew-able energy projects will be provided in parallel to public and private operators accordingly, including through the Western Balkans Sustainable Energy Credit Line Facility (WeBSECLF), technical assistance and direct financing.

In the financial sector, the Bank will support local banks, leas-ing companies and microfinance institutions (MFIs) to ensure sustainable lending to small enterprises and households and further developments in the SME sector.

Source: Bloomberg

Market Capitalisation (Sarajevo SE) BAM 7.1bn

YTD Dev. of Market Capitalisation -0.4%

Number of SE Transactions p.m. 1,144

YTD Dev. of SE Transactions -51.1%

SE Turnover (SASE) BAM 6.6mn

Monthly Index Performance (SAX-10/SASE) 2.3%

Market Capitalisation (Banja Luka SE) BAM 3.6bn




SE Turnover (BLSE) BAM 7.5mn

Monthly Index Performance (BIRS/BLSE) 2.1%





BAM/EUR 1.96



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http://www.ebrd.com/downloads/country/strategy/bosnia.pdf

http://www.ebrd.com/downloads/country/strategy/bosnia.pdf


13 Bosnia and Herzegovina

At the same time, to attract strategic investors and to acceler-ate the privatization process, the Bank will actively seek and develop projects in key export-oriented sectors, including agribusiness, manufacturing and services, telecommunica-tions, pharmaceutical sector, property and tourism, as well as wood and metals processing.

Economic growth in 2010 and 2011 is expected to be posi-tive but modest. In the most recent economic outlook pub-lished on 28 October 2010, the Bank raised its previous growth forecast for Bosnia and Herzegovina from 0.4% to 0.8% for 2010 and from 1.7% to 2.2% for 2011. Given the low starting point, the economy should have potential for stronger growth over the medium term.

Since the beginning of its operations in Bosnia and Herze-govina, the EBRD has committed over EUR 1.2 bn in more than 80 projects in various sectors of the economy.

Source: EBRD Press Release from 09 November 2010

Impact on investors For information purposes only.

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

IFC and SASE conference “Going public”Sarajevo Stock Exchange together with the International Finance Corporation (IFC), member of World Bank Group and together with the Chamber of Economy of Sarajevo Canton are organizing, on 01 December 2010, a confer-ence on the topic “Initial public offers on Sarajevo Stock Exchange - Going public”.

The goal of this conference is to introduce inter-ested companies with the process of going public, and opening themselves to external investors and to possibilities of gathering capital on capital markets. The conference was designed for joint stock companies who are planning to issue securities for financing further develop-ment and attracting new investors in their ownership struc-ture. Also, it was designed for limited liability companies, which reached the peak of their development and intend to transform into joint stock companies, as well as for majority owners of limited liability companies who want to capitalize their engagement in the company.

Impact on investorsFor information purposes only.

mailto:[email protected]

http://www.bizon.ba/banke/8053-ifc-i-sase-organizuju-seminar-going-public.html


14

BULGaRIa

FSC Initiative to Review the Rules and Procedures of the Central Depository and the Bulgarian Stock ExchangeThe Financial Supervision Commission initiated a discus-sion with market participants on the review of the Rules and Procedures of the Central Depository and the Rules and Regulations of the Bulgarian Stock Exchange. The Com-mission noted difficulties in the implementation of some of the requirements in the rules and asked market participants to provide their opinions and proposals so that they can be reviewed by the Commission and relevant steps be taken. The purpose of the review is to reduce the administrative burden on participants and to align the documents with cur-rent regulations.

The Commission expects to receive responses from the market participants within the next month. UniCredit Bulbank actively participates in the review process by drafting a list of desired changes and submitting this to the Association of Banks in Bulgaria for on-ward discussion with other banks and proposal to the Commission within the set deadline.

Impact on investors: Improvement of the rules and regulations of the Central Depository and of the Bulgarian Stock Exchange towards reducing the administrative burden on market participants.

Market Capitalisation BGN 10.3bn




SE Turnover (Bulgarian Stock Exchange) BGN 86.4mn

Monthly Index Performance (SOFIX) -8.4%


GDP Real 2010 (Change against prev. year in %) -0.5



EUR/BGN 1.96

Upcoming Holidays11, 24, 25, 26, 31

December



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15 Bulgaria

Financial Supervision Commission Drafts New TariffThe Financial Supervision Commission published an announcement that it drafted a new tariff for its services. The draft document was also made available on the internet site of the Commission. It proposes significant increases in the fees the Commission will collect from supervised entities. In line with the Law on the Financial Supervision Commis-sion the proposed new tariff was submitted to the Council of Ministers for review and further adoption by Parliament.

According to established market practices, participants will give their opinions on the proposed changes to the Commis-sion’s tariff, and the increased fees are likely to face strong opposition from stake holders like issuers, brokers, invest-ment and insurance companies who will face an increase of costs in a market which has still not recovered. Earlier the Commission did not receive approval from the Council of Ministers to increase its funding from the state budget in 2011, and it may be currently seeking an increase of funding sources from its own activity.

Impact on investors: Possibility that local market participants may shift the added regulatory cost burden to their clients.

Bulgarian Stock Exchange and Belgrade Stock Exchange Sign Memorandum of CooperationThe 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 infor-mation 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 respec-tive 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.

Global Finance Award Ceremony: UniCredit Bulbank is Best Bank in BulgariaUniCredit Bulbank was awarded “Best Bank in Bul-garia 2010” by the international magazine Global Finance (www.gfmag.com).

The award was presented by the publisher and editorial director of Global Finance Joseph Giarraputo to the CEO of UniCredit Bulbank Levon Hampartzoumian in Washington. Nearly 200 senior executives from 90 banks in more than 75 countries were invited to the official ceremony and received their certificate in front of an audience of their peers. For the last twelve years, Global Finance has conducted its Best Bank Award Ceremony during the Annual Meetings of the IMF and World Bank.

To make the award selections, Global Finance looked for operations that set the standard for the competition. It employed both subjective and objective criteria in picking the country winners. More than ever, customers are demanding superior competence from their partners.

Information about awards of UniCredit Bulbank is available in “About the Bank” section on www.unicreditbulbank.bg.

Impact on investors: Proof of UniCredit Bulbank’s operational excellence and commitment to the highest industry standards.

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

http://www.bse-sofia.bg

http://www.belex.rs


16

CRoaTIa

Higher crisis tax rate on all incomes abolishedAbout 344,500 workers and pensioners whose monthly incomes are over HRK 6,000 received higher salaries and pensions as of 01 November 2010 with the cancellation of a 4% crisis tax, with the average increase to be about HRK 380.

The crisis tax on all incomes was introduced on 01 August 2009, with two rates – 2% on incomes between HRK 3,000 and HRK 6,000, which was cancelled on 01 July this year, and the mentioned 4% rate on incomes over HRK 6,000. The crisis tax applied only to Croatian residents, both natural and legal persons. Under the crisis tax law, more than HRK 2.8 bn was paid into the state budget by the second half of this month, including HRK 1.06 bn between August and Decem-ber 2009 and HRK 1.82 bn this year through October 2010. The 4% rate applies until the end of the year to freelancers with monthly incomes over HRK 6,000. This refers to about HRK 15,000 taxpayers, who are expected to bring about HRK 100 mn into the budget by the end of 2010.

Impact on investorsThe 4% crisis tax rate abolished as of 01 November 2010.

Government transferring its HT shares to pensioners’ fundThe Croatian government has decided to transfer its shares in the HT-Hrvatske Telekomunikacije company to the Pension-ers’ Fund free of charge. The government holds 2,859,148 shares in the telecommunications company, with the nominal value of HRK 100 per share. The market value was deter-mined on the basis of the last trading price on the day when the decision on the transfer was made.

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

Market Capitalisation HRK 168.7bn




SE Turnover (Zagreb SE) HRK 760.6mn

Monthly Index Performance (Crobex/ZSE) -2.4%





EUR/HRK 7.32




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17 Croatia

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

HPB supervisory board approves recapitalisationThe 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 investorsHPB will increase its share capital.



18

CzECH REpUBLIC

C EZ again generates highest profit for owners in 2009Energy company CEZ brought the highest economic profit to its owners last year and once again topped the chart of Czech companies ranked in terms of creation of Economic Value Added (EVA), compiled by agency CEKIA. Mobile operator Telefonica O2 Czech Republic ranked second, followed by rival T-Mobile. Ranking of the two companies was also the same as a year earlier. Gas company RWE Transgas regis-tered the biggest upward shift in the chart, while car maker Skoda Auto saw the biggest fall.

Negative influence of the economic recession in the Czech Republic on the results of the individual companies further increased in 2009, CEKIA director Alena Seoud said.

CEKIA’s chart provides information about a company’s eco-nomic profit from the point of the firm as well as its share-holders and creditors. The EVA indicator shows whether a company creates economic value added for its owners, or whether it destroys the value invested in it. It is an indicator of a firm’s ranking on the market and its ability to generate profit.

CEZ ranked at the top of the chart for the fourth straight year, but its position considerably worsened compared to 2008 as 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 in terms of the absolute EVA indicator in 2009. Telefonica’s EVA rose by CZK 473 mn to CZK 8.5 bn, while T-Mobile’s EVA fell by CZK 0.5 bn.

Skoda Auto’s EVA indicator fell from CZK 5.7 bn in 2008 to minus CZK 612 mn last year, showing the first drop in 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 nega-tive 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.

Market Capitalisation CZK 1.3trn


Number of SE Transactions p.m. n.a.


SE Turnover (Prague SE) CZK 63.0bn

Monthly Index Performance (PX) 2.2%





EUR/CZK 24.40

Upcoming Holidays 24 December



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19 Czech Republic

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

In contrast, production and distribution of electricity, gas and water showed a marked growth as the only segment of the economy. RWE Transgas, a dominant gas supplier, saw the 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 position from the 59,652th position in 2008.

The lowest EVA value was traditionally calculated for public transport companies. Prague public transport company DPP placed at the very bottom of the chart with the EVA value at minus CZK 6.6 bn. Bottom spots were also occupied by state-run rail operator Ceske drahy (minus CZK 5.8 bn), pharmaceutical company Zentiva Group (minus CZK 5.4 bn) and state-run forest management firm Lesy CR (minus CZK 4 bn). Mining company OKD, which was the climber of the year 2008, was among the worst-assessed companies in terms of EVA last year as its indicator fell to minus CZK 3.9 bn.

The majority owner of CEZ is the state which controls around 70% of the company’s shares.

The state received almost CZK 20 bn in dividends from CEZ’s record-high 2009 profit of CZK 51.9 bn. This year, CEZ expects to post profit of around CZK 47 bn.

Almost 36,000 Czech companies were assessed in the 2009 ranking, which is 20% more than in 2008. CEKIA is a pro-vider of company databases and economic information. It focuses mainly on economic data of companies in the Czech Republic.

Source: CEKIA

Impact on investors The top ranked Czech companies for the year 2009 in 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.

Start of Trading with Fortuna Share Issue

Trading with the share issue of Fortuna Entertainment Group

N.V. (FORTUNA, ISIN NL0009604859) was successfully

started on 22 November 2010. The issue is traded on the

main market of the Prague Stock Exchange.

The following companies provide market making activity for

the newly listed share issue of Fortuna Entertainment Group

N.V. (ISIN NL0009604859):

■■ C eská spor itelna, a.s.

■■ BH Securities a.s.

■■ WOOD & Company FS, a.s.

■■ ATLANTIK financ ní trhy, a.s.

■■ UniCredit Bank Czech Republic, a.s.

■■ FIO banka, a.s.

For detailed information regarding the issue, issuer and the trading data please see the link below: http://www.pse.cz/Cenne-Papiry/Detail.aspx?isin=-NL0009604859#OL

Source: PSE

Impact on investorsTrading with the share issue of Fortuna Entertainment Group N.V. (FORTUNA, ISIN NL0009604859) has been introduced on the main market of the Prague Stock Exchange.


http://www.pse.cz/Cenne-Papiry/Detail.aspx?isin=NL0009604859#OL





20

HUNGaRy

Increased Activity of Foreign Investors at the Budapest Stock ExchangeWhile the proportion of domestic households has decreased, the activity of foreign investors on the Budapest Stock Exchange (BSE) has significantly increased in 2010, accord-ing to the new Investor Statistics freshly introduced by the BSE. The new statistics show trading activity of four catego-ries of investors, besides domestic households and foreign investors, the BSE differentiates also domestic institutional investors and proprietary traders (proprietary trades of sec-tion members), as well.

The turnover on the BSE augmented during spring 2010, in the period between July and September, however, it dropped below the HUF 800 bn value experienced back in January. 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 raising their activity in Hungary: their 43% share in the spot market turnover reflects pre-crisis figures.

The BSE has developed yet another new type of statistics, seldom seen in the international stock exchange world: the Budapest Liquidity Measure (BLM), which is calculated on internationally recognized methodology. The BLM describes liquidity from the most important point of view of investors: it quantifies the implicit costs of the execution of an order when investors face less liquid markets. Therefore, the more liquid an instrument is, the lower the value of the BLM is, which means lower price paid for liquidity.

Institutional investors may use the measure to analyze liquid-ity, manage liquidity risk of portfolios, develop new trading techniques and analyze transaction costs.

Impact on investorsTwo new statistics recently launched by the BSE provide sophisticated information on the composition of investors on the BSE and on liquidity measures.

Market Capitalisation HUF 17,768.1bn




SE Turnover (Budapest SE) HUF 759,997mn

Monthly Index Performance (BUX) 0.4%





EUR/HUF 272.17

Extra working day 11 December




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21 Hungary

Hungarian Government to Announce Structural Reforms in FebruaryAccording 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 investorsInformation on the structural reforms being introduced by the government in Hungary.

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


22

KazaKHSTaN

Trades results at KASE ■■ Stock trading volume on KASE (excluding transactions repo) was KZT 263.5 bn (equivalent to USD 1,786.7 mn) and increased relatively to the corresponding period of 2009 to 22.4% (on 22.0% in dollar terms).

■■ The volume of corporate bonds on KASE (excluding transactions in the market repo operations) amounted to KZT 206.0 bn (equivalent to USD 1,397.4 mn) and fell against the corresponding period of 2009 to 38.4% (to 39.1% in dollar terms).

■■ The volume of trading in government securities (GS) on KASE (excluding transactions in the market repo op-erations) amounted to KZT 1,286.6 bn (equivalent of USD 8,733,600,000) and increased relatively to the cor-responding period of 2009 to 18.5% (by 20.0% in dollar terms).

■■ The volume of trades in the market repo (KASE was KZT 10,652.4 bn (equivalent to USD 72,325.8 mn) and rose versus the same period last year to 17.9% (to 16.1% in dollar terms).

■■ The volume of trades in foreign currencies at the KASE, including currency swaps, amounted to KZT 12,472.7 bn (equivalent to USD 84,660.4 mn) and increased relatively to the corresponding period of 2009 to 61.0% (by 58.4% in dollar terms).

■■ The volume of trades at the KASE in all sectors was KZT 24,881.2 bn (equivalent to USD 168,903,900,000) and increased relatively to the corresponding period of 2009 to 35.1% (to 33.2% in dollar terms).

Impact on investorsFollowing 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 ManagerTel. +7 727 258 30 15 · [email protected]

Market Capitalisation KZT 11,797.7bn




SE Turnover (KASE) KZT 21,970.9bn

Monthly Index Performance (KASE) 1,647.7





EUR/KZT 202.24


Source: Bloomberg


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23

KyRGyzSTaN

Parliamentary elections in Kyrgyzstan ‘beginning of new government’ – OtunbayevaKyrgyzstan will hold parliamentary elections that will lead the country into a new legitimate government after the former president, Kurmanbek Bakiyev, was ousted in April in a bloody revolution.

“These elections contain the destiny for our people and gov-ernment. We are not just electing the parliament, we are beginning a new system of government - a parliamentary republic,” Otunbayeva said.

She also said that a parliamentary form of government was not brought to Kyrgyzstan from overseas or from another continent. “The spirit of democracy is based in the traditions of our forefathers, which helped us survive for centuries,” she said.

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 investorsLegitimate parliament elections will bring political and eco-nomic stability, and growth of the activity of the securities market.

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

Market Capitalisation 3,200.0mn

YTD Dev. of Market Capitalisation n.a.

Number of SE Transactions p.m. 69


SE Turnover (KSE) KGS 106.5mn

Monthly Index Performance (KSE) 95.0

GDP per Capita (2010 in EUR) 1,457.2



Inflation in 2010 (yearly average in %) n.a.

EUR/KGS 65.27




24

poLaND

Polish NDS is opening operational link with the Lithuanian marketThe National Depository for Securities (KDPW) is opening a new operational link with the Lithuanian market, which will enable Lithuanian companies to be listed on the Warsaw Stock Exchange (WSE) for the first time. On 19 November 2010, KDPW and LCVPD (AB Lietuvos Centrinis Vertybiniu Popieriu Depozitoriumas), the Lithuanian central securities depository, signed an agreement providing for the clearing and settlement of transactions in Lithuanian securities to be listed on the WSE. In addition to the advantages for Lithua-nian companies in being able to raise capital on the WSE, the new link will also provide Polish investors with opportunities for more diversified investment portfolios and for a broader range of investment strategies, including arbitrage in both markets. The link with the Lithuanian market is the newest operational link opened by KDPW this year. In 2010, KDPW opened a link with the Bulgarian and Canadian markets.

Currently, KDPW maintains operational connections with 16 foreign central securities depositories, including seven direct links between KDPW and a foreign depository, including LCVPD and nine indirect links, either via one of two inter-national depositories (Clearstream Banking Luxembourg and Euroclear Bank) or through a custodian bank (the link to the Bulgarian market). KDPW’s existing links enable the WSE to list over two dozen foreign companies from Austria, the Czech Republic, Estonia, France, Germany, Hungary, Italy, Slovakia, Sweden, UK, USA, Canada, Bulgaria and now also Lithuania. In addition to co-operation with institu-tions of the Polish capital market, in particular the Warsaw Stock Exchange, KDPW is working to simplify registration, participation, and corporate action procedures for foreign issuers from countries with which KDPW has established or will establish a link.

Source: the National Depository for Securities

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

Market Capitalisation PLN 528.1bn


Number of SE Transactions p.m. 1,311,140


SE Turnover (WSE) PLN 48.6bn

Monthly Index Performance (WIG20) 1.4%

Monthly Index Performance (WIG) 2.2%





EUR/PLN 4.00




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25 Poland

WSE shares debuted on the Warsaw Stock ExchangeAfter 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, rep-resentatives 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 avail-able. At the opening of the first day of trading in the WSE shares, 6,932 transactions worth PLN 75.4mn were con-cluded 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 investorsPrivatisation of the WSE is a further step of the Polish market development that may attract foreign investors.

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



26

RomaNIa

Economy

Romania’s Finance Ministry gets EUR 1.31 bn from the market, with an average yield of 4.8%The Public Finance Ministry (MFP) sold state bonds maturing in three years worth EUR 1.31 bn on Thursday, at an average yield of 4.8% and a coupon rate of 4.5%, according to the central lender BNR.

The announced value of the bid was of EUR 1 bn. Banks’ offers amounted to over EUR 2.05 bn.

The governor of the central lender, Mugur Isarescu, said that MFP would better pay its old loan on time, that is maturing next week, and get another loan afterwards because there is enough money.

Romania has to return a credit of EUR 1.4 bn on 29 Novem-ber.

President Traian Basescu declared on 18 November that the proof which will demonstrate the efficiency of the measures completed by the government will surface at the end of the month, when Romania will try to obtain an external loan.

“If we succeed to take this loan of EUR 1 bn with an interest below 5%, then Romania got back its credibility”, the chief of state said last week.

Impact on investors Romania’s Finance Ministry gets EUR 1.31 bn from the market; with an average yield of 4.8%.

Market Capitalisation RON 96.6bn




SE Turnover (Bucharest SE) RON 334.5mn

Monthly Index Performance (BET/BSE) -1.0%





EUR/RON 4.30




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27 Romania

Performance of the Romanian Stock Exchange companies in Q3The best performers in July-September remained companies whose exports account for a large share of sales, while the pharmaceutical and oil sectors slowed down their growth sig-nificantly. Analysts believe exporters on the Stock Exchange stand the best chances of continuing to perform well, con-sidering that there is still no Government endorsement for investment projects on the Romanian market, and that the population’s income remains affected by cuts.

The cumulated turnovers of 65 of the leading Stock Exchange-listed companies went up by 12.6% in the third quarter of the year, to RON 9.3 bn, slightly lower than the decline recorded in the first half of the year, of 13.9%.

The actual increase remains low, because of the around 8% inflation. The biggest company on the market, OMV Petrom (SNP) boosted its sales by 6% to RON 4.8 bn, but posted losses.

Metallurgy companies were the most dynamic in the July-August period, boosting their turnovers by an average 66% against the similar interval of 2009 amid export demand and amid price increases.

Impact on investorsAnalysis of the BSE companies performances in Q3 of 2010.

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

Central Bank

The solvency of the banking system in Romania increased to 14, 6% in SeptemberThe solvency rate in the Romanian banking system increased to 14.6% in September from 14.3% in June 2010, in com-parison to September 2009 when it was at a level of 13.7%, stated the first deputy governor of the National Bank of Roma-nia, Mr. Florin Georgescu.

“The solvency of banks is provided by stable and less resources such subordinated loans,” also stated Mr. Georgescu.

Accordingly, the banks have a solvency ratio above 10%, and nearly two thirds (65%) of credit institutions solvency ratio between 12 and 14%. Mr. Georgescu, first deputy governor of the National Bank of Romania, declared that the Tier 1 ratio (capital, reserves and profit) increased to 13.8% at the end of September, from 10.6% in December 2007.

Impact on investorsRomanian banks registered a good solvency ration in 2010.

and: Andreea Albu GSS Account ManagerTel. +40 21 200 2678 · [email protected]




28

RUSSIa

Investors buy shares according to government’s privatization planRussian stock market volume reached record levels. Exces-sive demand of the part of Western and Russian investors showed securities of Sberbank and Rosneft, as well as other companies and banks, which was mentioned in the future privatization plan. Shares of “Transneft”, excluded from the privatization list, fell in price by 5.7%.

Market participants explain the growing interest in the public sector companies from the intensification of the privatization program. First Deputy Prime Minister, Igor Shuvalov, pre-sented new details about the future privatization program. Key details of the program were known before but formerly state representatives spoke about the program for three to four years of about USD 10 bn annually, while Shuvalov mentioned USD 60 bn in a period of five years. In addition, the list of companies was expanded by “Rostelecom”, “Aeroflot” and a number of transport assets.

Impact on InvestorsNew statements concerning privatization plan provoked rally on Russian stoke exchange.

Draft order that abolish necessity of disclosure of substation factsFederal Financial Markets Service (FFMS) published the order draft which shall allow small issuers to avoid the publication of substantial facts (Occurrence of corporate events or deci-sion of corporate actions which must be disclosed according to legislation). Such issuers must have not more than 500 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 InvestorsIf draft order is adopted, small companies will be able not to disclose substantial facts.

Market Capitalisation RUB 15.6trn


Number of SE Transactions p.m. (MICEX) 9,255,451


SE Turnover (MICEX) RUB 6.2trn

Monthly Index Performance (RTS) 4.2%





EUR/RUB 41.33

Upcoming Holidays 1, 10 January



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29 Russia

The first foreign security allowed for placement in RussiaThe Federal Financial Markets Service (FFMS) for the first time approved the placement in Russia of foreign security – the sovereign bonds of the Republic of Belarus 01 and 02 series.

In accordance with the registered prospectus of securi-ties, placement and circulation of bonds of Belarus will be 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.

Procedure for registration of prospectuses of securities of foreign issuers and the admission of foreign securities to placement and public circulation on the territory of the Rus-sian Federation were registered by the Justice Ministry in April this year. This document was the last step of the regulatory framework development for the placement of foreign securi-ties in Russia.

“This is a pilot project. If it proves to be successful, we expect further placements, possibly from the same issuer, and, pos-sibly, issuers from other countries “, - the head of the FFMS emphasized.

Impact on InvestorsNew instruments appeared on the Russian market.

FFMS has implemented the monitoring system to detect suspicious transactions on the stock marketThe new integrated monitoring system, introduced by FFMS, already keeps track of suspicious transactions on the stock market, and this, according to the head of FFMS Vladimir Milovidov, will provide an opportunity to increase transpar-ency of the operations on the market.

The system operates on-line and daily monitors all transac-tions on the stock markets on the five main types of violations that are a priority for FFMS. These include the manipulation of prices, retention of prices, transactions without economic substance, insider trading and bogus bids. Upon finding a dubious deal, the system generates a special data card, which is sent to the newly created Department of FFMS to perform an analysis of the message. If an operation is recog-nized as unfair, FFMS has the right to tag or make a decision to revoke the license of the participant. “We can make any decision, but should be ready to prove it in court”, - Vladimir Milovidov said, noting that the investigation process may last up to several months.

As of the monitoring system, it has been developed on the basis of a software company NICE Actimize, which is already used by the financial regulators of the Netherlands and the UK, as well as many international banks.

The head of the Russian representation of Nice UK Ltd, Vyacheslav Morozov said that the monitoring system of FFMS is capable to process up to 10 mn bids per day, and more than 1.2 mn actual transactions made each day.

Impact on InvestorsThis implementation will increase market transparency and discipline.

RTS plans IPO in 2011RTS has announced plans to carry out an IPO next year. RTS plans to place its shares in order to increase the capitaliza-tion, as well as increasing the guarantee fund of depository, clearing and settlement infrastructure in connection with the proposed amendments in legislation and increasing trading volume. In addition, attracted funds will be spent on business expansion in Russia and CIS countries and further develop-ment of the RTS projects in Ukraine and Kazakhstan, as well as the launch of new exchange projects and products.

It is unclear how the initiative of the RTS will be considered by FFMS which supports consolidation of the stock exchange infrastructure. As IPO involves the expansion of the share-holders, this may hamper the possible process of a merger of the RTS and MICEX.

According to the Chairman of the RTS, Roman Goryunov, the stock exchange is considering of placing at least 20% of the shares at the own floor.

The Board of Directors of RTS approved the list of compa-nies that will accompany further IPO in 2011. The issue of stock exchange assessment would be solved through the comparison with the Stock Exchanges of the Philippines or Kuwait. According to analytics, 20% of shares of RTS could cost USD 140-170 mn.

Upon the announcement of the IPO plans RTS shareholders have received an offer from MICEX to sell a 20% stake of the stock exchange at a price of USD 150 mn, and the remaining 80% stake to exchange for the shares of MICEX. The amount of USD 150 mn was derived from a general assessment of RTS’s capitalization of USD 750 mn.

As noted by one member of the Board of Directors of RTS, MICEX offer says that after the completion of the transaction a “relatively” independent existence of the stock exchanges is expected for several years. The consolidation of stock exchange infrastructure was provided by the government strategy of promoting the financial market to 2020.

The representative of FFMS noted that the acquisition of one of the exchanges by another conforms to the strategy of financial market development.

Impact on InvestorsDevelopment of securities market infrastructure.


30 Russia

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

FFMS has prepared a draft order on disclosure of information of technical failures on stock exchangesAccording to the draft order on the disclosure of information of technical failures on the platforms of stock exchanges, in case of technical failures during the trading the stock exchange will be obliged to disclose this information on its Internet site within at least 5 minutes after occurrence.

In the case of trading cessation caused by a technical failure, the stock exchange is obligated to disclose on the site infor-mation about the exact time of trading resumption and the time period, during which trade participants may withdraw an application for transactions, but not less than 30 minutes prior to the moment of trading resumption. Meanwhile, the time period during which trade participants may withdraw an application for transactions must be at least 10 minutes prior to the resumption of trading. Simultaneously, the stock exchange sends a notification to FFMS with information on the failure.

Whilst implementing or upgrading computers, hardware and software (trading facilities), the stock exchange is obligated to prepare the schedule of their implementation or upgrade, and test trading facilities.

If failures were found in the implementation of trading facili-ties, the stock exchange is obligated to disclose information on the site at least 15 minutes prior to trading. When trading facilities are put into operation, the stock market should lead 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 InvestorsThe regulation of stock exchange market in the issues of technical failures on trading floors.

Profile Committee of the State Duma supported law draft on equality of shareholders in receiving dividendsThe State Duma Committee on Property recommended the adoption of the draft law on equality of all shareholders in terms of dividend pay date in the second reading.

The draft law amends Article 42 of the Federal Law “On Joint Stock Companies”, providing the obligation of the joint stock company to pay dividends at the same time to all holders of shares of the relevant category (type), as well as legally prohibiting the company to provide benefits on terms of payments of dividends among the holders of shares of one class (type).

According to the current edition of the Law, the date and manner of payment of dividends are determined by the com-pany’s charter or by the general meeting of shareholders, but if the company’s charter date does not define payment of dividends, the term of payment should not exceed 60 days from the date of adoption of the decision to pay dividends. It often means that the issuer company can pay dividends within some period of time and the shareholders of one cat-egory can receive dividends on different dates.

Impact on InvestorsPossible further adoption of the draft law will legally define equality of shareholders and implementation of a single pay date concept on the Russian market.

mailto:mailto


31

SERBIa

Gross Domestic Product Growth Revision The European Bank for Reconstruction and Development (EBRD) has revised Serbia’s Gross Domestic Product (GDP) expansion forecast for 2010 in its updated economic outlook. The revision has downsized previous growth forecast from 1.9% to 1.6%. EBRD has announced in July 2010 its 2011 GDP growth forecast for Serbia to be 3%, but has amended it in its latest economic outlook to 2.9%.

EBRD has projected 0.6% growth in 2010 and expansion to 1.6% in 2011, for the entire Southeast European region, including Albania, Bosnian Federation, Bulgaria, Macedo-nia, Montenegro and Romania. EBRD notes that regional exports are rapidly increasing in most countries, while domes-tic demand development remains slow, while most of the countries from the region face fiscal issues.

EBRD report also states that Greek crisis spillover possibility was contained, but that there is enough potential for such scenario that would affect regional economies, should the crisis in Greece worsen.

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

Inflation Target Revision The International Monetary Fund (IMF) has advised the National Bank of Serbia (NBS) to increase target inflation forecast for 2011 to 4.5% plus/minus 1.5% to 6% plus/minus 2%, during the last meeting with Serbian officials, held in 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 fore-cast 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 SpecialistTel. +381 11 3028 687 · [email protected]

Market Capitalisation RSD 939.3bn



YTD Dev. of SE Transactions 4,210.2%

SE Turnover (Belgrade SE) RSD 3.8bn

Monthly Index Performance (Belex 15) 2.4%





EUR/RSD 115.00


Source: Bloomberg


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32

SLovaK REpUBLIC

Bratislava Stock Exchange Trading in OctoberIn the month of October 2010, the electronic trading system of the Bratislava Stock Exchange (BSSE) was accessible to members in 21 business days. A total of 725 transac-tions were concluded in this period, in a financial volume of EUR 677.07 mn. In comparison with the previous month the volume rose by 13.94% and the number of transactions increased by 25.43%. A year-on-year comparison shows a decline in trading volume (-37.96%), with noticeable increase in the number of concluded transactions (+145.76%). In terms of transaction structure, the month of October 2010 was no different to previous periods. Negotiated deals again dominated over electronic order book (i.e. price-setting) transactions, with the former representing 99.50% of the total trading volume. A total of 188 negotiated deals in a volume of EUR 673.79 mn were concluded, as opposed to 563 electronic order book transactions in a financial volume of EUR 3.29 mn.

Investors in October 2010 continued to focus on debt securi-ties, as bond transactions generated as much as 92.96% of the achieved volume. A total of 162 bond transactions were concluded in the period under review, in which 404,979,842 units of securities were traded in a volume exceeding EUR 670.63 mn. The volume of traded securities rose against the previous month by 21.41%, while the number of trans-actions fell by 8.47%. The volume as well as the number of transactions decreased on a year-on-year basis (-40.39% and -19.25%). Negotiated deals in bonds (in a volume of EUR 668.66 mn) continued to dominate over electronic order book transactions (EUR 1.98 mn).

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 substan-tial part of the volume of share transactions (i.e. 97.49%) in October 2010.

Market Capitalisation EUR 28.1bn


Number of SE Transactions p.m. 725.0


SE Turnover (Bratislava SE) EUR 0.7bn

Monthly Index Performance (SAX/BSSE) -6.5%





EUR/SKK n.a.




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33 Slovak Republic

A total of 5,226 transactions, in a financial volume of EUR 5.91 bn, have been cumulatively concluded on the BSSE since the start of this year. It is a 38.32% decline against the same period of last year. Transactions concluded by non-residents in October 2010 represent 48.17% of the total trading volume.

As of the last trading day of the month of October 2010, the market capitalisation of equity securities recorded a 5.60% decrease on a month-on-previous-month basis to EUR 3.07 bn. The market capitalisation of bonds amounted to EUR 25.01 bn, representing a 9.26% increase on a month-on-previous-month basis.

The SAX index ended the month of October 2010 at 217.49 points, representing a 6.45% decrease on a month-on-pre-vious-month basis and a 21.31% decrease year on year.

Impact on investors BSSE performance in October 2010.

Changes to the value added tax act The Slovak Coalition Council has agreed upon the follow-ing temporary changes to the Value Added Tax Act, which, subject to being adopted by the Parliament, will become applicable on 01 January 2011:

■■ The basic value added tax (VAT) rate will increase from the current 19 to 20 %;

■■ Medication, books and selected medical aids will remain subject to the reduced rate of 10%;

■■ The reduced rate of 6 % for farm-gate sale will be abol-ished.

The changed VAT rates will remain applicable until the public finance deficit falls under 3% of the gross domestic product. This should be achieved in 2013.

Although VAT on custody services is directly charged to resi-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 investorsAmendment 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 ManagerTel. +421 2 4950 3702 · [email protected]



34

SLovENIa

Termination of index LJSEX and lifting of restriction on the Entry MarketLjubljana Stock Exchange published two measures related to operating the stock market that it has adopted and which took effect on 15 October 2010:

1. Termination of Ljubljana Stock Exchange (LJSE) Composite (LJSEX) – Since SBI TOP became LJSE’s benchmark and tradable index, the index LJSEX has lost its informative and applied value. LJSE therefore stopped calculating LJSEX on 15 October 2010.

2. Lifting of fixed restriction on the equities Entry Market – Due to major market imbalances LJSE had temporarily restricted the daily price movement restriction on this market segment to 20%. Market conditions have since been stable for a longer term, which has facilitated efficient market price formation. The price movement restriction started with 15 October 2010.

Impact on investorsTermination of index LJSEX and temporary restriction of the daily price movement restriction on Entry Market.

Amended requirements for account opening are changed due to new list of countries entitled for simplified procedureThe Office for Money Laundering Prevention published the List of Countries with Strong Likelihood of Appearance of Money Laundering or Terrorist Financing at the end of Sep-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 coun-tries 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 investorsAmended requirements for account opening in Slovenia.

Market Capitalisation EUR 20.7mn




SE Turnover (Ljubljana SE) EUR 33.0mn

Monthly Index Performance (SBI 20) -19.5%








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http://www.uppd.gov.si/si/vsebinska_podrocja/seznam_drzav/


35 Slovenia

Amended Banking Act implemented EU Directives 2009/111/EC, 2009/14/EC and partly 94/19/ECThe amended Banking Act was published in the Official Gazette nr. 79/2010 on 8 October 2010, and is valid from 11 October 2010 and applicable from 31 December 2010.

The main changes in the amended act are:

1. Implementation of Directive 2009/11/EC with the inten-tion to strengthen the stability of the banking system, decrease risk exposure and improve the supervision of affiliated banks. The nature of hybrid instruments which are taken into equity calculation is defined. The definition of connected persons is extended and credit exposure against credit and investment institutions is limited to 25% of equity. The requirements for the cooperation of the Slovene Central Bank with the Committee of European Banking supervisors are set.

2. Implementation of Directive 2009/14/ec and Directive 94/19/EC, with the intention to increase the amount of guaranteed deposits and shorten the period for payment. The amount of the guaranteed deposits of legal or natural persons is increased from EUR 50.000 to EUR 100.000. Banks and other financial institutions deposits are exempt from the guarantee scheme. In a case Slovene banks are 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 investorsAmended 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 ManagerTel. +386 1 5876 453 · [email protected]

IMF Downgrades Slovenia’s Economic Growth for 2010The International Monetary Fund (IMF) downgraded its projec-tions for Slovenia’s economic growth for year 2010 by 0.3 percentage points to 0.8% on 6 October 2010. It meanwhile improved its projections for 2011 from 2% to 2.4%.

The IMF predicted a 1.1% growth for Slovenia for 2010 and a 2% growth for 2011 in its April report. In 2009, the Slovenian economy shrank by 7.8%. Inflation should reach 1.5% this year and 2.3% next year. The current account deficit, which last year stood at 1.5% of GDP, will be halved to 0.7% of GDP in 2010 and 2011.

The unemployment rate, standing at 6% in 2009, will increase to 7.8% this year and rise to 8.1% in 2011, according to the latest IMF report.

The IMF predicts a 4.8% growth of the global economy for 2010 and a 4.2% growth for 2011. The emerging economies will record a 7.1% growth, while the developed countries will grow at a 2.7% rate.

Impact on investorsIMF downgraded Slovenia´s economic growth for 2010 to 0.8%.


36

UKRaINE

IMF mission approved a first review of stand-by-program for Ukraine Experts from the International Monetary Fund (IMF) have approved the first review of the IMF-Ukraine Stand-By Arrangement (SBA) under which Kyiv hopes to receive a second loan tranche of about USD 1.6 bn.

According to IMF Mission Chief for Ukraine Thanos Arvanitis, the IMF mission has reached staff-level agreement with the Ukrainian authorities on the conclusion of the first review under the SBA. The authorities‘ Letter of Intent will now be submitted to IMF Management. It is expected that following the completion of prior actions by the authorities, the Execu-tive Board will consider the review before the end of the year.

Mr. Arvanitis noted that the completion of the review would release SDR 1 bn (about USD 1.6 bn), of which $1 bn would be provided for state budget support. He also pointed out, that Ukraine‘s performance under the SBA has been broadly in line with program objectives. All end-September quantita-tive performance criteria were met and steady progress was made on structural reforms.

The IMF in late July approved SBA worth SDR 10 bn (about USD 15.8 bn) to support Ukraine‘s economic reforms pro-gram. Kyiv has already received the first tranche, worth SDR 1.25 bn, of which the Ukrainian cabinet was allocated USD 1 bn.

Impact on investors IMF mission approved a first review of stand-by-program for Ukraine.

Market Capitalisation UAH 219.4bn




SE Turnover (PFTS) UAH 5.4bn

Monthly Index Performance (PFTS) -5.2%





EUR/UAH 10.61




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

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 submit-ted 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 docu-ments 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 infor-mation on the electronic form of primary documents and programs for issuing and submitting the docu-ments for the electronic registration of businesses. The law will come into force nine months after its publication.

Source: Interfax -Ukraine

Impact on investorsPresident of Ukraine signs the law on electronic registra-tion of companies.



38

yoUR CoNTaCTSRegional responsibilityAttila Szalay-Berzeviczy Tel. +35 1 301 1910 [email protected]

Pawel Muszalski Tel. +43 50505 57315 [email protected]

Markus Winkler Tel. +43 50505 58547 [email protected]

Sven Trahan Tel. +43 50505 57311 [email protected]

Beata Szonyi Tel. +36 1 301 1924 [email protected]

Ewa Stupkiewicz Tel. +43 50505 58511 [email protected]

Philipp Aschl Tel. +43 50505 58508 [email protected]

AustriaUniCredit Bank Austria AG Julius Tandler-Platz 3 A-1090 Vienna Austria

Günter Schnaitt Tel. +43 50505 58501 [email protected]

Thomas Rosmanitz Tel. +43 50505 58515 [email protected]

Tina Fischer Tel. +43 50505 58512 [email protected]

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

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

Bosnia and HerzegovinaUniCredit Bank d.d. Zelenih Beretki 24 BA-71000 Sarajevo Bosnia

Lejla Sabljica Tel. +387 33 562 777 [email protected]

Amra Telacevic Tel. +387 33 562 816 [email protected]

BulgariaUniCredit Bulbank AD 6 Vitosha Boulevard, 2nd floor BG-1000 Sofia Bulgaria

Yavor Dojdevski Tel. +359 2 9320 107 [email protected]

Veselin Stefanov Tel. + 359 2 93 20 112 [email protected]

CroatiaZagrebacka Banka d.d. Savska 60/IV HR-10000 Zagreb Croatia

Valerija Bezak Tel. +385 1 6305 430 [email protected]

Snjezana Bruncic Tel. +385 1 6305 400 [email protected]


39 Your Contacts

Czech RepublicUniCredit Bank Czech Republic a.s. Revolucni 7 CZ-110 05 Prague Czech Republic

Michal Stuchlik Tel. +420 22121 6770 [email protected]

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

Tomas Vacha T. + 420 221 216 773 [email protected]

HungaryUniCredit Bank Hungary Zrt. Szabadsag ter 5 – 6, 6th floor H-1054 Budapest Hungary

Júlia Romhányi Tel. +36 1 301 1923 [email protected]

Zsanett Lencses Tel. +36 1 301 1920 [email protected]

Livia Meszaros Tel. +36 1 301 1921 [email protected]

KazakhstanJSC ATF Bank Furmanov Street 100 KZ-050000 Almaty Republic of Kazakhstan

Vladimir Vassilyev Tel. +7 727 258 3015 (1353) [email protected]

Natalya Kolnogorova Tel. +7 727 258 3015 (1232) [email protected]

PolandBank Polska Kasa Opieki SA (short: Bank Pekao) Ul. Grzybowska 53/57 PL-00-950 Warsaw Poland

Tomasz Grajewski Tel. +48 22 524 5867 [email protected]

Mariusz Piekos Tel. +48 22 524 5852 [email protected]

Kamil Polak Tel. +48 22 524 5863 [email protected]

Marta Boboryk Tel. +48 22 656 10 92 [email protected]

Krzysztof Pekrul Tel. +48 22 524 5864 [email protected]

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

RomaniaUniCredit Tiriac Bank S.A. Ghetarilor Street 23 – 25 RO-014106, Bucharest 1 Romania

Irina Savastre Tel. +40 21 200 2670 [email protected]

Viviana Traistaru Tel. +40 21 200 2673 [email protected]

RussiaZAO UniCredit Bank 9, Prechistenskaya Emb. RU-119034 Moscow Russian Federation

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


40 Your Contacts

SerbiaUniCredit Bank Serbia JSC Omladinskih Brigada 88 RS-11070 Belgrade Serbia

Jasmina Radicevic Tel. +381 11 3028 611 [email protected]

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

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

Matej Letko Tel. +421 2 4950 3701 [email protected]

Zuzana Milanova Tel. +421 2 4950 3702 [email protected]

SloveniaUniCredit 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 Garibovic Tel. +386 1 5876 453 [email protected]

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

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

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

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

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

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

Websitesgss.unicreditgroup.eu http://www.unicreditgroup.eu http://www.bankaustria.at

http://www.unicreditgroup.eu


41

DISCLaImERThe information in this publication is based on carefully selected sources believed to be reliable but we do not make any representation as to its accuracy or completeness. Any opinions herein reflect our judgement at the date hereof and are subject to change without notice. Any investments presented in this report may be unsuitable for the investor depending on his or her specific investment objectives and financial position. Any reports provided herein are provided for general information purposes only and cannot substitute the obtaining of independent financial advice. Private inves-tors should obtain the advice of their banker/broker about any investments concerned prior to making them. Nothing in this publication is intended to create contractual obligations on any of the entities composing Corporate & Investment Banking Division of UniCredit Group which is composed of (the respective divisions of) UniCredit Bank AG, Munich, UniCredit Bank Austria AG, Vienna, and UniCredit S.p.A., Rome.

UniCredit Bank AG is regulated by the German Financial Supervisory Author-ity (BaFin), UniCredit Bank Austria AG is regulated by the Austrian Financial Market Authority (FMA), the UniCredit CAIB Securtities UK Ltd. is regulated by the Financial Services Authority (FSA) and UniCredit S.p.A. is regulated by both the Banca d’Italia and the Commissione Nazionale per le Società e la Borsa (Consob).

Note to UK Residents:

In the United Kingdom, this publication is being communicated on a confi-dential basis only to clients of Corporate & Investment Banking Division of UniCredit Group (acting through UniCredit Bank AG, London Branch (“UCB London”) and/or UniCredit CAIB Securities UK Ltd. who (i) have professional experience in matters relating to investments being investment professionals 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 49(2) (a) – (d) (“high net worth companies, unincorporated associations etc.”) of the FPO (or, to the extent that this publication relates to an unregulated collective scheme, to professional investors as defined in Article 14(5) of the Financial Services and Markets Act 2000 (Promotion of Collective Investment 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 as “Relevant Persons”). This publication is only directed at Relevant Persons and any investment or investment activity to which this publication relates is only available to Relevant Persons or will be engaged in only with Relevant Persons. Solicitations resulting from this publication will only be responded to if the person concerned is a Relevant Person. Other persons should not rely or act upon this publication or any of its contents.

The information provided herein (including any report set out herein) does not constitute a solicitation to buy or an offer to sell any securities. The information in this publication is based on carefully selected sources believed to be reliable but we do not make any representation as to its accuracy or completeness. Any opinions herein reflect our judgement at the date hereof and are subject to change without notice.

We and/or any other entity of the Corporate & Investment Banking Division of UniCredit Group may from time to time with respect to securities mentioned in this publication (i) take a long or short position and buy or sell such securities; (ii) act as investment bankers and/or commercial bankers for issuers of such securities; (iii) be represented on the board of any issuers of such securi-ties; (iv) engage in “market making” of such securities; (v) have a consulting relationship with any issuer. Any investments discussed or recommended in any report provided herein may be unsuitable for investors depending on their specific investment objectives and financial position. Any information provided herein is provided for general information purposes only and cannot substitute the obtaining of independent financial advice.

UCB London is regulated, to a limited extent, by the Financial Services Author-ity for the conduct of business in the UK as well as by BaFIN, Germany. UniCredit CAIB Securities UK Ltd., London, a subsidiary of UniCredit Bank Austria AG, is authorised and regulated by the Financial Services Authority.

Notwithstanding the above, if this publication relates to securities subject to the Prospectus Directive (2005) it is sent to you on the basis that you are a Qualified Investor for the purposes of the directive or any relevant implementing legislation of a European Economic Area (“EEA”) Member State which has implemented the Prospectus Directive and it must not be given to any person who is not a Qualified Investor. By being in receipt of this publication you under-take that you will only offer or sell the securities described in this publication in circumstances which do not require the production of a prospectus under Article 3 of the Prospectus Directive or any relevant implementing legislation of an EEA Member State which has implemented the Prospectus Directive.

Note to US Residents:

The information provided herein or contained in any report provided herein is intended solely for institutional clients of Corporate & Investment Banking Division of UniCredit Group acting through UniCredit Bank AG, New York Branch and UniCredit Capital Markets, Inc. (together “UniCredit”) in the United States, and may not be used or relied upon by any other person for any purpose. It does not constitute a solicitation to buy or an offer to sell any securities under the Securities Act of 1933, as amended, or under any other US federal or state securities laws, rules or regulations. Investments in securities discussed herein may be unsuitable for investors, depending on their specific investment objectives, risk tolerance and financial position.

In jurisdictions where UniCredit is not registered or licensed to trade in securi-ties, commodities or other financial products, any transaction may be effected only in accordance with applicable laws and legislation, which may vary from jurisdiction to jurisdiction and may require that a transaction be made in accord-ance with applicable exemptions from registration or licensing requirements.

All information contained herein is based on carefully selected sources believed to be reliable, but UniCredit makes no representations as to its accuracy or completeness. Any opinions contained herein reflect UniCerdit’s judgement as of the original date of publication, without regard to the date on which you may receive such information, and are subject to change without notice.

UniCredit may have issued other reports that are inconsistent with, and reach different conclusions from, the information presented in any report provided herein. Those reports reflect the different assumptions, views and analytical methods of the analysts who prepared them. Past performance should not be taken as an indication or guarantee of further performance, and no representa-tion or warranty, express or implied, is made regarding future performance.

UniCredit and/or any other entity of Corporate & Investment Banking Division of UniCredit Group may from time to time, with respect to any securities dis-cussed herein: (i) take a long or short position and buy or sell such securities; (ii) act as investment and/or commercial bankers for issuers of such securities; (iii) be represented on the board of such issuers; (iv) engage in “market making” of such securities; and (v) act as a paid consultant or adviser to any issuer.

The information contained in any report provided herein may include forward-looking statements within the meaning of US federal securities laws that are subject to risks and uncertainties. Factors that could cause a company’s actual results and financial condition to differ from its expectations include, without limitation: Political uncertainty, changes in economic conditions that adversely affect the level of demand for the company’s products or services, changes in foreign exchange markets, changes in international and domestic financial markets, competitive environments and other factors relating to the foregoing. All forward-looking statements contained in this report are qualified in their entirety by this cautionary statement.

Corporate & Investment Banking Division of UniCredit Group

UniCredit Bank AG, Munich; UniCredit Bank Austria AG, Vienna and UniCredit S.p.A., Rome

as of 29 March 2010


42

ImpRINTStatement 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

Registeredunder no. FN 150714p Companies Register at the Commercial Court Vienna

Kind of businessCredit institution under section 1 (1) Austrian Banking Act

Supervisory authorityAustrian Financial Market Supervisory Authority (Finanzmarktaufsicht), departments banking supervision and securities supervisionPraterstraße 23 A-1020 Vienna http://www.fma.gv.at

MembershipAustrian 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 regulationsApplicable 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 numberATU 51507409

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