gss newsletter · issue 123, july 2011 2 content dear clients 4 nema – bigger and better every...

GSSNEWSLETTERISSUE 123July 2011

Issue 123, July 2011

2

CoNTENT

DEaR CLIENTS 4

NEMa – bIGGER aND bETTER EvERy yEaR 5

INTERvIEW WITh MRS. IvaNa GažIC 6

JohN'S CoRNER 8

aUSTRIa 9Wiener Börse AG announces results 2010 and changes to the Supervisory Board 9Vienna Stock Exchange prolongs Xetra Agreement with Deutsche Börse ahead of time 9

bELaRUS 10National Bank increased refinancing rate 10Standard & Poor’s downgraded Belarus credit rating 10First IPO in Belarus 11President Lukashenko issued new decree 11

boSNIa aND hERzEGovINa 12Treasury bills of the Republic of Srpska sold 12Successful capital increase of the Sarajevo Stock Exchange 12

bULGaRIa 13Change in RINGS system day 13Regulator obliges CDAD to publish significant shareholder disclosures in its weekly bulletin 14National Corporate Governance Commission 14

CRoaTIa 15HNB Council reduces bank discount rate from 9% to 7% 15Kanfanar-Umag section upgraded to dual-carriageway standards 15HBOR loans up 7.5% in 2010 16

CzECh REpUbLIC 17CNB: Euro entry not on agenda 17New DTT between the Czech Republic and China 18New DTT between the Czech Republic and Hong Kong 18

hUNGaRy 19New prospect listings on the Budapest Stock Exchange 19Bonus certificates on the Budapest Stock Exchange 20Hungarian Electricity Works to establish gas bourse 20


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KazaKhSTaN 21EBRD Annual Meeding held in Astana 21

KyRGyzSTaN 22May trading statistics 22

poLaND 23Changes in autoborrow facility offered by NDS 23

RoMaNIa 24Stock Exchange 24A&D Pharma pays EUR 44 mn for shares listed in London 24German Henkel group to build third factory in Romania 25Central Bank urges adoption of Euro in 2015, Government undecided 25Petrom makes first power delivery at new power plant in Brazi 25Romgaz to pay the Romanian state dividends for EUR 143 mn from profit 25

RUSSIa 26Ministry of Finance to set up Market Department 26Ministry of Finance wants to restore primary dealers 26Central Bank will allow refinancing in foreign currency 26Federal Financial Markets Service demonstrates the principles of liberalization of regulation 27MICEX to move the start of trading sessions 27MICEX to protect itself from robots 27

SERbIa 28Eurostat data show Serbia’s GDP per capita to decrease 28Serbian Statistics Office to be upgraded by EU-funding 28

SLovaK REpUbLIC 29Amendment to the Commercial Code 29Bratislava Stock Exchange Trading in May 2011 29

SLovENIa 31OECD says Slovenia needs deeper pension reform 31Dun&Bradstreet keeps low risk rating for Slovenia 32

UKRaINE 33Fitch rated Ukraine’s Eurobonds ‘B’ 33Creation of sole information system for securities market participants 33

yoUR CoNTaCTS 34

DISCLaIMER 37

IMpRINT 38


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DEaR CLIENTS

Valerija Bezak (Head of GSS Croatia)

It was a great pleasure for us to be able to welcome you all in the astonishingly beautiful Dubrovnik (though we are indeed admittedly biased) for this year’s Network Management con-ference. Being the only host to have this major event of the industry for the second time in its eleven-year history is a great honour but, at the same time, also a huge burden to keep up with and exceed the high expectations set by the preceding editions of the event. We strongly hope that you have found both the conference useful and interesting and our hospitality welcoming. NeMa has managed to record this year an ever increasing number of participants while continu-ing to maintain the high standards set in the past. Thank you for your personal contribution to that!

As time goes by, we are already in the middle of 2011 and yet a very exciting second half is waiting for us. Croatia is looking forward to a lot of new challenges until the end of this year – parliamentary elections scheduled for the end of the year, post EU approval finalisation of the EU accession negotiation, to only name a few. On 10 June 2011 the Euro-pean Union approved Croatia for entry into the community by mid-2013 as its 28th member state and only the second former Yugoslavian republic, after Slovenia, allowed entry in the EU. Croatia’s bid is still to be considered by the Council of the European Union, the body of member state heads, which will have the final say on when the accession talks will end. The accession treaty must then be approved by the member states, the European Parliament and the Croatian voters.

With EU accession firmly on the way, the attention will now turn on to how much we can benefit from the country’s mem-bership in the EU, particularly in terms of attracting foreign investments and boosting growth. We can all agree with the Croatian president Ivo Josipovic when saying: “In the European context, Croatia can with certainty secure peace, stability, prosperity. We are moving away from the past.”

Croatia is one of the countries in the CEE region with the lowest GDP growth forecast. We must face slower economic recovery due to the fact that we have not implemented reforms for years. However, as a result of the improved environment following the EU entry approval and the forthcoming elections, we are expecting stronger enforcement of structural reforms, including fiscal consolidation and fiscal deficit reduction.

As by now Croatia has had EU candidate status for more than seven years, our legislation, especially the one related to capital markets, is already in line with the EU acquis communautaire and therefore no further alignments will be necessary. As one of the final steps, Zagreb Stock Exchange has recently introduced a new set of Rules according to which securities lending will be implemented in coordination with the Central Depository And Clearing Company. In the first stage this will only be avail-able for a restricted list of securities meeting stringent liquidity criteria and in return for cash as collateral. We would foresee that it will be mostly used for short selling, which is also, for the first time in Croatia, regulated by new ZSE Rules. One of the novelties of the new Rules, and for the market in general, is that listing of foreign securities will be allowed on ZSE. Being the strongest exchange in the former Yugoslavian region, we expect significant interest from the neighbouring countries. Even more, under the new Rules, it will also be possible to trade structured products on the regulated market.

We are especially honoured to present in this issue of our News-letter an interview with Ms. Ivana Gažic, CEO of Zagreb Stock Exchange and President of the Management Board, who will provide you with further insight on their view of the Croatian capital market and the steps they are already taking to boost the liquidity and attract back the interest to the local capital market.

The Croatian Global Securities Services team is closely fol-lowing all market and regulatory changes and certainly using its lobbying power as the biggest local bank to influence the development of the local market in a way that is beneficial to our customers and the market in general.

We wish you a nice and relaxing summer and we look forward to working with you on bringing the Croatian capital market at par with the other markets in the European Union.

With kind regards,

Valerija BezakHead of GSS Croatia


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For the 11th time Network Managers from the securities ser-vices industry came together to discuss recent developments in the industry. A record number of 340 bankers from Asia, the U.S., the Middle East and all over Europe followed ICBI’s invitation to the Network Management conference (NeMa), which recently took place in the picturesque city of Dubrovnik on the Adriatic coast.

Attila Szalay-Berzeviczy was very pleased with the turn-out of the conference, “UniCredit has supported NeMa as a main sponsor since its inception. It is exciting to watch how this annual landmark event is still growing – while it has remained very much focused.” A number of participants even called NeMa a “mini SIBOS” – with all the possibilities of meeting the right people and making business, within pleasant sur-roundings.

The event featured high quality speakers from service provid-ers as well as from the industry side, covering topical issues such as the changing role of network managers and their organisations, regulatory issues or pricing policies. Large parts of the programme were dedicated to the Emerging Markets and their prospects, which was especially fitting being discussed in a country which is in accession towards the European Union.

A major contribution to the success of the annual NeMa comes from the side events, namely the sponsors’ evening invitations. UniCredit, together with HSBC, held its dinner reception at the stunning Revelin fortress in Dubrovnik’s old town, which – on top of a good party atmosphere – offered great impressions from a romantic sundown over heavy thun-derstorms down to a spectacular panorama of the lunar eclipse over the Mediterranean.

Julia Romhanyi, Josip Kevari, Agnes Temesvari and Mark Davies at the UniCredit stand

At the UniCredit/HSBC reception - a couple of minutes before the thunderstorm arises

NEMa – bIGGER aND bETTER EvERy yEaR

UniCredit GSS wishes to congratulate Andrew Barman and his team for another great NeMa and is already looking for-ward to welcoming the crowd again next year!

Written by Veronika RiefPlease find Josip Kevari’s pictures from Dubrovnik here.

Attila Szalay-Berzeviczy and John Gubert on the panel with Joe Barnes (Deutsche Bank), Andrew Osborne (Northern Trust), Beatriz Molina Aragones (The Bank of New York Mellon) and Ulf Noren (SEB)

https://picasaweb.google.com/116183692543940594496/NeMa2011?authkey=Gv1sRgCPC0r5m2yK-Bfg&feat=directlink


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Mrs. Ivana Gažic was a panelist at the Regional Emerging Markets Masterclass at the NeMa. The UniCredit GSS Newsletter met her in Dubrovnik, only a couple of days after Croatia has been given the go-ahead to become a member of the European Union.

Mrs. Gažic, congratulations on the achievements regard-ing your country’s accession to the EU. Can you explain us how the Zagreb Stock Exchange has prepared itself for the integration so far?

The Financial Markets legislation has been among the first fully EU-compliant laws in Croatia. It has been in force for two years already, based on the MiFID regulations, which shows that a lot of the work has already been accomplished in this respect. EU accession in terms of capital markets will not bring any further significant changes to the legislation.

How will your relationship with foreign members change?

Today we consider all non-Croatian players foreigners, but as soon as Croatia enters the European Union, participants from its member countries will immediately have domestic status. We are prepared for single passporting for listings and for accepting foreign members on the stock exchange.

So far there has been no way for a foreign market participant to be direct member, meaning that they have had to operate via a subsidiary or go through a local broker. Currently, the Zagreb Stock Exchange has 32 members, roughly half of

which are banks and the other half privately owned brokerage houses. Almost all of the biggest players have their own local presence, just like UniCredit who is a member of the Zagreb Stock Exchange through Zagrebacka banka.

Alliances and co-operations between stock exchanges have become popular in Central and Eastern Europe. Is Zagreb in talks about possible partnerships as well?

It is obvious that the stock exchange industry is going through a consolidation process and I do not think it will surpass Croatia on the long run. There were indeed some talks in the past about involvement from the Vienna Stock Exchange as well as the Warsaw Stock Exchange, but for now we are still independent. The Zagreb Stock Exchange is wholly privately owned by 45 shareholders, who are not in any discussions about selling it, as far as I know.

How do you regard the role of the Zagreb Stock Exchange in its neighbourhood?

There were ideas that the Zagreb Stock Exchange might take over other stock exchanges in the countries of Ex-Yugoslavia. However, due to the financial crisis none of them has mate-rialized.

But a couple of weeks ago, new rules enabling us to list foreign issuers have been approved by Croatian Financial Survices Supervisory Agency (CFSSA), the regulator. We have pushed for this amendment that finally opens up the perspective of becoming a regional hub for top issuers from Ex-Yugoslavia. As a matter of fact, Croatia is the only country in the region that has a well developed pension fund system and an open fund industry. We can count on a pretty wide investor base and certainly have a big number of international investors, all of which are well familiar with to the standards of the Zagreb Stock Exchange. By adding foreign stocks to our offering, we expect to be able to increase the liquidity.

The liquidity of the Zagreb Stock Exchange is probably not at the level you would like to see. Apart from adding listings from your neighbouring countries, which other measures are you envisaging to boost liquidity?

Although the influence of a stock exchange on liquidity is limited, we do anything to bring more “goods” to the market. While we certainly count on increasing the number of issuers, we also try to encourage listed companies to go for second-ary offerings and promote them on our road shows.

But we are also busy enhancing market transparency and data reliability, which shall lead to more confidence from investors. Moreover, we invest into education for example by offering trainings for the public investor base, through which we want to attract the retail segment.

INTERvIEW WITh MRS. IvaNa GažIC

Ivana Gažic (President of the Management Board of the Zagreb Stock Exchange)


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Do you foresee any capital markets transactions in the near future?

Absolutely. At the moment there are a few secondary offerings going on (e.g. Velebit Insurance and Port of Ploce). A couple of Croatian companies have announced that they are looking into the possibilities of the equity market.

Moreover, the market should benefit from a number of forced transactions. There are construction companies which cur-rently have difficulties paying back their debt as a result of the depression on the local real estate market. Converting debt into equity is an option for them and their creditors. Banks have stopped to operate with high leverage in companies that are not profitable enough and thus require a strengthened equity base.

And what about state owned companies? Are there any new privatizations on the horizon?

The privatization of the monopolists Croatian Telekom (HT) and INA via big IPOs has brought a lot of attention to the capital market. The Croatian Telecom IPO, for instance, was signed by 350,000 individual investors. Based on this experi-ence, any new listing would be welcome as it would add to the visibility of the financial market.

Given we are in a pre-election year, it is hard to predict whether this Government will undertake any further privatiza-tion efforts. The last IPOs took place ahead of elections, but for now we have no such signs. Even if there is not much time left up to the elections, I am still hoping for new transactions.

You have mentioned INA, the large oil company. What will be the future of the stock in light of the take-over attempt by MOL?

This is a crystal ball question. We do miss the turnover that INA had generated before MOL made its public bid, after which trading has been suspended. With its nearly 1mn HRK daily turnover it had covered a pretty significant share of the market volume. At the moment our turnover amounts to up to 21 mn HKR (3 mn EUR) per day. The situation is such that the free float is small but at the same time the interest in the company extremely high on both sides. The regulator is currently supervising the whole takeover process and will not release trading again before they have finished their investiga-tion. I really cannot predict how this exciting story will end.

Has the pending bid for INA changed the proportion between domestic and foreign investors?

The market is distorted for sure. INA was heavily traded by foreign market participants, who currently are absent. Even more urgently would we need new transactions trigger their appetite from both international and domestic investors. Moreover, international investors are keen on liquid stocks in order to be able to exit their positions fast, but our current liquidity makes it hard for them to take bigger positions.

The Zagreb Stock Exchange is currently focused on cash transactions. Do you have any plans for derivatives trading?

Apart from the fact that there is no real interest from potential issuers, the market is not mature enough for derivatives. But since end of June, thanks to the new regulations, we will be able to trade certificates for the first time. So far, two banks have expressed their general interest in issuing such papers.

To which extent will you open the market for short-selling?

The new regulations will allow covered short-selling, based on our Central Depositary and Clearing Company borrowing system. As soon as the CDCC will have adopted their own rules, up to ten stocks will be eligible for short-selling. I am convinced that this will add positively to the liquidity.

Veronika Rief spoke with Mrs. Gažic

Interview with Mrs. Ivana Gažic


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The third area for harmonisation should be new issue docu-mentation. Depending on the market and instrument, the new issue and corporate action teams across each custodian labour through lengthy prospectuses, trust deeds and other associated documents to glean the relatively limited data they need to process each transaction. It should not be beyond the wit of man to produce a single page appendix to each prospectus that summarises the information requirements of a back office.

And finally there is one danger lurking over the horizon! Some infrastructures (especially certain Exchanges) are militating for greater transparency in trading and calling for the end of pre trade netting. They have undoubtedly a commercial interest in such a structure as it would increase the number of hits on their trading platforms. But the solution does not fit the problem – although the cynic may say the same about much of the change we are already experiencing in Europe.

John Gubert

JohN'S CoRNER

John Gubert

The current slew of planned EU directives is making Europe a challenging place for all parts of the securities value chain. The acrimonious debate about short selling, the CCP centric European Markets Infrastructure Regulations or the protec-tionist nature of parts of the Alternative Investment Fund Managers Directive have all been widely publicised. MIFID is to be extended with a likely requirement for communica-tion of post trade data. UCITS may have a further iteration to extend liability to cover the “gaps” revealed in the Madoff scandal. The possible CSD directive could affect custodians as much as the target CSDs. The list is unfortunately never ending and the annual industry cost of managing that mass of regulatory change may well be approaching the half billion euro per year level.

The move to T2S, and the growing list of further changes to market infrastructure (such as the auction of LCH Clearnet or the European impact of the proposed NYSE Euronext- Deutsche Boerse merger) will cause material change and mandatory investment in process by market participants. T2S was always estimated to cost the industry around EUR 1 bn. It may well be that the bill could be greater, as it appears more CSDs are using its introduction to upgrade or replace their legacy platforms.

On the other hand, the harmonisation programmes adopted by the Commission and the ECB are a highly welcome start to a process that could save regional investors (both in and beyond Europe) several hundred million Euro per annum. Yet there are three core areas where Europe could deliver more value; unfortunately they are politically toxic areas and thus there is a risk that they will be side-lined rather than prioritised.

The first area for reform is the tax structure. There should be legislation to ensure that withholding tax can be reclaimed at source. And it should be accompanied by a European fiscal passport allowing us to dispense with the information intensive paperwork that is duplicated time and again across the region.

The second area for reform should be in corporate actions. AFME (the Association for Financial Markets in Europe) has proposed sensible rules to allow corporate actions and income distribution to operate according to a harmonised time-table. The proposals have hit legal barriers in some countries, but these tend to arise from the legacy of rules adopted in an age of slow and paper based communication; quite simply they need to be modernised.


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Austria

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 35,520GDP Real 2011e (Change against prev. year in %) 2.33-Month Money Market Rate (current in %) 1.61Inflation in 2011e (yearly average in %) 2.5.../EUR -Upcoming Holidays none

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Actual 38 Day moving average 200 Day moving average

6/30/2011 2:08 PM

Market Capitalisation EUR 89.6bn

YTD Dev. of Market Capitalisation 0.2%

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

YTD Dev. of SE Transactions n.a.

SE Turnover (Vienna SE) EUR 2.4bn

Monthly Index Performance (ATX/VSE) 0.2%

GDP per Capita (2011 in EUR) 35,520

GDP Real 2011 (Change against prev. year in %) 2.3

3-Month Money Market Rate (current in %) 1.61

Inflation in 2011 (yearly average in %) 2.5

Upcoming Holidays none

Source: Thomson Datastream

Source: UniCredit, National Statistics

ATX

aUSTRIa

Wiener Börse AG announces results 2010 and changes to the Supervisory BoardWiener Börse AG, a 100% subsidiary of CEESEG AG, the holding company of the CEE Stock Exchange Group, looks back at a successful business year 2010 despite the difficult environment: The operating result (EBIT) for 2010 was EUR 24.92 mn and the profit on ordinary business activity was EUR 29.18 mn. It is not possible to compare these figures with the preceding year because of the split off of Wiener Börse AG and the restructuring carried out in mid-year 2009.

The general shareholders’ meeting also passed a resolution on the following changes to the Supervisory Board of Wiener Börse AG: Heimo Scheuch, current CEO of Wiener berger AG, will replace Wolfgang Reithofer, retired CEO of Wiener-berger. Andreas Brandstetter, Deputy General Director of UNIQA Versicherungen AG will succeed Konstantin Klien, General Director of UNIQA Versicherungen AG.

Impact on investors For information purposes only.

Vienna Stock Exchange prolongs Xetra Agreement with Deutsche Börse ahead of timeThe Vienna Stock Exchange has prolonged the Xetra Agree-ment for its cash market electronic trading system ahead of time for a further period of five years, specifically until 2017. Agreement was also reached to assure that all future modi-fications and innovations to the trading systems of Deutsche Börse will be implemented simultaneously on the Vienna Stock Exchange. This guarantees access to the highly effi-cient technology of its German partners for the cash market of the Vienna Stock Exchange.

Source: Wiener Börse


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


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Market Capitalisation USD 438.5mn

YTD Dev. of Market Capitalisation n.a.

Number of SE Transactions p.m. (BCSE) 4,595

YTD Dev. of SE Transactions 123.2%

SE Turnover (BCSE) BYR 5,648bn

Monthly Index Performance (BCSE) 6.1%

GDP per Capita (December 2011, in EUR) 200

GDP Real 3 quarter 2010 (Change against prev. year in %)

18.57

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

Inflation (yearly average in %) 13.1

BYR/EUR 0.00014



bELaRUS

National Bank increased refinancing rateIn June the National Bank of Belarus increased the refinanc-ing rate twice:

■■ Starting from 1 June, 2011 National Bank of Belarus in-creased the refinancing rate by 2% resulting to 16%.

■■ Starting from 22 June, 2011 National Bank of Belarus increased the refinancing rate by 2% resulting to 18%.

Such decision was made by the National Bank due to sig-nificant growth of consumer prices. The last increase of the refinancing rate was done in May 2011 from 13% to 14%.

Impact on investors Support of the local currency stability.

Standard & Poor’s downgraded Belarus credit rating On 27 May 2011 Standard & Poor’s Rating Services (S&P) downgraded the sovereign credit ratings of the Republic of Belarus:

■■ Long-term foreign currency rating was left unchanged on the level B, outlook – “Negative”;

■■ Long-term local currency rating was downgraded from B+ to B, outlook – “Negative”;

Short-term credit ratings denominated in foreign and local currency were confirmed on the level B.

The revision of the long-term sovereign ratings reflects the increased vulnerability of the economy due to reserves avail-ability deterioration.

Impact on investors Possible suspension of the economic growth.


11 Belarus

First IPO in BelarusThe joint stock company “Borisov Plant of Medical Sub-stances” announced initial public offering of shares on the stock market, which was the first IPO in the country. About 125.5 thousand shares will be put up for sale, representing about 15% of the company’s authorized equity. It is assumed to involve funds from domestic and foreign investors. Sale of shares to residents of Belarus will be implemented in Bela-rusian rubles, those to non-residents in Russian RUB, USD or EUR at the official rate of the National Bank, as fixed on the day of the transaction on the exchange.

Impact on investors Extended investment possibilities.

President Lukashenko issued new decreeThe President of Belarus, Alexander Lukashenko, issued a decree that gives preference to Minsky Gorispolcom (municipal administration of Minsk) and Oblispolcoms (regional municipal administrations) to buy shares of com-panies included in the list of strategically important sectors of economy that had been bought by citizens of Belarus from the state with 20% discount or had been gained in exchange for personalized privatization checks “Imushestvo”. This list of companies was approved by the Council of Ministers of the Republic of Belarus and included companies processing agricultural products. A shareholder intending to sell these shares has to notify Minsky Gorispolcom or Oblispolcoms by a registered letter with price indication or to place a selling order on Belarus quotation automated system of Belarusian Currency and Stock Exchange (BEQAS). If Minsky Gorispol-com or Oblispolcoms do not make a decision to purchase those shares in 90 days the shareholder has a right to sell them to any third party at a price not lower than specified in the registered letter.

Impact on investors Additional barriers for the sale of shares in strategically important companies.

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


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Source: Bloomberg

Market Capitalisation (Sarajevo SE) BAM 7.7bn


Number of SE Transactions p.m. 1,149

YTD Dev. of SE Transactions -36.8%

SE Turnover (SASE) BAM 33.7mn

Monthly Index Performance (SASX-10/SASE) -1.5%

Market Capitalisation (Banja Luka SE) BAM 4.2bn




SE Turnover (BLSE) BAM 45.0mn

Monthly Index Performance (BIRS/BLSE) -6.3%





BAM/EUR 1.96


boSNIa aND hERzEGovINa


Bosnia_Herzegovina

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 3,403GDP Real 2011e (Change against prev. year in %) 1.83-Month Money Market Rate (current in %) -Inflation in 2011e (yearly average in %) 2.1BAM/EUR 1.96Upcoming Holidays none

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6/30/2011 2:08 PM

BIFX

Treasury bills of the Republic of Srpska soldIn accordance with Article 10 of the Provision on requirements, issue procedure and elements of treasury bill primary market („Official Gazette of the Republic of Srpska“, number: 25/11) and decision on short-term debenture of the Republic of Srpska by the issue of treasury bills („Official Gazette of the Republic of Srpska“, number: 37/11), the Republic of Srpska Ministry of Finance announced the second public call for participation at an auction of the Republic of Srpska treasury bills on 9 June 2011.

The auction was held on Monday, 20 June 2011, in which the Ministry of Finance of the Republic of Srpska sold treasury bills worth around BAM 27.6 mn on Banja Luka Stock Exchange.

This represents 98% of the planned amount of the issue. 2,830 treasury bills of the Republic of Srpska were sold in the auc-tion at a unique balanced price of BAM 97.6632 per bill. The recorded annual interest rate on the reached discount price is 3.199%. The website of Banja Luka Stock Exchange states that the total amount of received offers exceeded BAM 65 mn.

Impact on investors New instrument available on the capital market in the Republic of Srpska.

Successful capital increase of the Sarajevo Stock Exchange The registration of the new share issue of the Sarajevo Stock Exchange was completed successfully – 924 shares with nominal value of BAM 100 per share were registered, which represent a 14.97% share in the total share capital of Sarajevo Stock Exchange.

The depositary bank had informed the Sarajevo Stock Exchange and Securities Commission of the Federation of Bosnia and Herzegovina that the payment was made for the purchase of 308 shares each by the Istanbul Stock Exchange, Takasbank Istanbul and the Turkish Central Registry of Securities. Based on requests submitted by the Sarajevo Stock Exchange, the Securities Commission of the Federation of BiH and the Registry of Securities in the Federation will carry out registration of capital increase and the new shares. This will formally complete the process of capital increase of the Sarajevo Stock Exchange and the Turkish capital market institutions will be registered as shareholders.

Impact on investors Increase of capital of the Sarajevo Stock Exchanged has been successfully finalized.

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

mailto:[email protected]


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Market Capitalisation BGN 11.5bn




SE Turnover (Bulgarian Stock Exchange) BGN 367.5mn

Monthly Index Performance (SOFIX) -2.3%





EUR/BGN 1.96


bULGaRIa



Bulgaria

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 5,070GDP Real 2011e (Change against prev. year in %) 2.83-Month Money Market Rate (current in %) 4.00Inflation in 2011e (yearly average in %) 3.2EUR/BGN 1.96Upcoming Holidays none

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6/30/2011 2:08 PM

SOFIX

Change in RINGS system dayThe Bulgarian National Bank took a decision to introduce changes to the system day of RINGS, the real-time gross set-tlement system for BGN, and as of 13 June 2011 it introduced a third settlement batch for BISERA, the system for non-priority customer payments in BGN each up to BGN 100,000.

The Central Bank first launched RINGS in 2003 to perform irrevocable and unconditional settlement of payments in BGN on the territory of Bulgaria, and has since then made system updates in line with market developments. RINGS is open between 08:00 and 17:30 but each participant has access only within a time frame pre-defined in the RINGS system day. The Central Bank owns RINGS and performs all actions in relation to its operation. RINGS is a technologically advanced system which functions in conformity with the Core Principles for Systemically Important Payment Systems of the Commit-tee on Payment and Settlement Systems with the Bank for International Settlements in Basel, the standards applied by the European Central Bank, the International Organization for Standardization, ANSI and SWIFT.

The change in the RINGS system day was initiated by the Association of Banks in Bulgaria and the payment system operator Borica-Bankservice AD. The Bulgarian National Bank as RINGS owner, administrator and operator supported, initi-ated and organized the fast realization of the project appre-ciating the positive effects for the payment system and the banks’ operational activities of servicing their customers.

Impact on investors A general positive market impact is expected in process-ing customer payments in BGN, including payments to the budget whereby a greater number of clients will use the second daily BISERA batch, reducing the volume in the third daily batch. This will reduce the time needed by banks to consolidate the data on the centralization of budget funds and end-of-day processing.


14 Bulgaria

Regulator obliges CDAD to publish significant shareholder disclosures in its weekly bulletinThe Financial Supervision Commission (FSC) issued a com-pulsory measure which obliges the Central Depository AD (CDAD), the CSD for all dematerialized securities except Gov-ernment Securities, to disclose in its weekly bulletin informa-tion on all shareholdings which cross the 5% or multiple of 5% significant shareholder threshold. Further to the regulator’s measure CDAD will publish in its weekly bulletin which is available against a subscription the exact percentage held by a beneficial investor or by an omnibus account holder upon a transaction which crosses 5% or a multiple of 5% of the share capital of a public company.

The Public Offering of Securities Act requires investors to notify the public company and the FSC each time when the investor’s voting rights (directly or indirectly) reach, exceed or fall below 5% or a multiple of 5% of the total number of votes. The investor must meet this disclosure obligation within four business days of the acquisition or disposal of the shares. According to the law the Central Depository is also obliged to report to the FSC the 5% threshold changes in holdings of public companies. The FSC may require foreign invest-ment intermediaries that hold shares in their own names but on behalf of their clients to identify their clients within three business days of receiving a written request by FSC.

Impact on investors Availability of more transparent information of public com-panies’ shareholder structure.

National Corporate Governance CommissionThe National Corporate Governance Commission held a meeting at the beginning of June 2011 and elected Mr. Moravenov as Chairman for a one-year mandate fur-ther to the expiry of the previous Chairman’s mandate. Mr. Moravenov is highly regarded in the capital market and was also among the authors of the Bulgarian National Corpo-rate Governance Code (see link for further details on the Code http://www.bse-sofia.bg/?page=CodeGovernance).

The Bulgarian Stock Exchange – Sofia proposed the cal-culation of a new index for companies with good corporate governance, and took the responsibility to draft rules for calculation of such a new index which will be reviewed at the meeting of the National Corporate Governance Commission in July 2011.


Written and edited by: Yavor Dojdevski Head of Global Securities Services, BulgariaTel. +359 2 923 2670 · [email protected]

http://www.bse-sofia.bg/?page=CodeGovernance


15

CRoaTIa

Market Capitalisation HRK 206.7bn




SE Turnover (Zagreb SE) HRK 450.4mn

Monthly Index Performance (Crobex/ZSE) 2.0%





EUR/HRK 7.40

Upcoming Holidays 5, 15 August



Croatia

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 10,620GDP Real 2011e (Change against prev. year in %) 1.63-Month Money Market Rate (current in %) 1.3Inflation in 2011e (yearly average in %) 2.3EUR/HRK 7.40Upcoming Holidays none

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6/30/2011 2:08 PM

CROBEX

HNB Council reduces bank discount rate from 9% to 7%In the light of the gradually decreasing interest rates in the money and loan markets, the Croatian National Bank (HNB) Council decided to lower the annual bank discount rate from 9% to 7%. Even though this rate does not have a more significant impact on our monetary developments, the reduction should result in an additional lowering of interest rates in relations between legal persons and between legal and natural persons, the HNB said in a statement. Under the Civil Obligations Act, the bank discount rate serves to calculate the default interest which is defined anew every six months, and the legal default rate is the starting point for determining the maximum allowed contractual interest rate.

This means that in line with HNB Council decision and the Civil Obligations Act, as of 1 July 2011 the legal default rate in relations between legal persons will be 15%, and in relations between legal and natural persons it will be 12% annually. The maximum contractual interest rate in relations between legal persons will be 22.5% and between legal and natural persons 12%.

Impact on investors A reduction of the bank discount rate will result in an addi-tional lowering of interest rates in relations between legal persons and between legal and natural persons.

Kanfanar-Umag section upgraded to dual-carriageway standardsA 50-kilometre Kanfanar-Umag section of a motorway in the northern Adriatic region of Istria was officially upgraded to full dual-carriageway standards, eight months before the dead-line for the completion of construction work. The section was formally inaugurated by Prime Minister Jadranka Kosor, who recalled that the government had earmarked HRK 470 mn for the Kanfanar-Umag section. In 2010, a motorway section from Pula to Kanfanar was upgraded to full dual-carriageway standards, and after the construction of the Kanfanar-Umag section, the biggest Istrian city of Pula is now connected to the Slovenian border with an 80-kilometre motorway.

The upgrading of the Pula-Umag section to full dual-carriage-way standards cost EUR 228 mn. Kosor spoke about the importance of road construction for tourism and the economy in general, expressing satisfaction with this important economic project. She expressed hope that by the end of 2014, the full route of the motorway, popularly called the Ipsilon motorway, would be upgraded to full dual-carriageway standards.



16 Croatia

HBOR loans up 7.5% in 2010The Croatian Bank for Reconstruction and Development (HBOR) approved in 2010 a total of 1,606 loans in the amount of HRK 6.62 bn, which was by 7.5% more than in 2009. The bank developed new credit programmes to suit needs of Cro-atian business people, the HBOR managing board chairman, Antun Kovacev told the parliament. The new programmes were applied for small and medium-sized enterprise, rural infrastructure and economy, and for the enhancement of Croatian entrepreneurs’ competitiveness, he added.

The strongest support was offered to Croatian exporters. Under the export support programme, a total of 406 loans in the amount of HRK 2.99 bn were granted last year. There were 447 loans for SMEs in the amount of HRK 1.1 bn. In 2010, HBOR registered revenues of HRK 921 mn, and HRK 803 mn in expenditures. Parliamentary parties said that in the time of great economic challenges HBOR played an important role in provision of loans to the economy and entrepreneurship.

Impact on investors HBOR continues supporting the development of economy and entrepreneurship.

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


17

Market Capitalisation CZK 1.4trn


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

YTD Dev. of SE Transactions n.a.

SE Turnover (Prague SE) CZK 64.6bn

Monthly Index Performance (PX) -0.96%





EUR/CZK 24.35

Upcoming Holidays 5, 6 July


CzECh REpUbLIC


Czech

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 14,825GDP Real 2011e (Change against prev. year in %) 1.83-Month Money Market Rate (current in %) 1.07Inflation in 2011e (yearly average in %) 2.1EUR/CZK 24.35Upcoming Holidays none

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6/30/2011 2:08 PM

PX-50

CNB: Euro entry not on agendaPoland and the Czech Republic will not join the eurozone until a lasting solution is found to the eurozone debt crisis, leading central bankers warned.

The eurozone must enact sweeping fiscal and governance reforms before EU states in Central and Eastern Europe will consider adopting the single currency, the region’s leading central bankers have warned.

Vladimir Tomsik, vice-governor of the Czech Central Bank, told Emerging Markets that public support for euro entry was “much weaker” than when the country joined the EU in 2004. He said the current crisis had raised concerns among the nation’s policymakers about the wisdom of adoption given the current uncertainty.

“Given the state of public finances on the one hand and the issues in the eurozone on the other, it is obvious that a potential Czech entry is not on the agenda,” he said.

Tomsik said it was clear the rules of the euro system had to be tightened up. “An optimal currency area is not just about internal transfers,” he said. “You need a genuine competitive market across that entire area.”

The same went for the policing of eurozone deficits. “We have rules for the euro system, but they’ve been ignored. We need to do more than tighten up the rules, we need to know how to enforce them.”

While joining the single currency would reduce exchange rate volatility, it would also involve sacrificing the country’s monetary policy autonomy. The economic case for the single currency was not clear-cut, he added.

He said that he saw the decision as to the speed or eventual likelihood of euro adoption ultimately as a political matter.


18 Czech Republic

“It is clear that the eurozone is not and has never been a so-called optimum currency area as treated by economic theory. So the decision whether the benefits are bigger than the costs is normative and therefore it is in the end a political decision,” he said.

Leading economists acknowledge that the current eurozone crisis has prompted larger nations in central and eastern Europe, notably the Czech Republic, Poland and Hungary, to assess the fallout from the current crisis before resuming moves towards euro adoption.

Mark Allen, senior regional representative for Central and Eastern Europe at the IMF, said: “For some countries, par-ticular larger countries [in Central and Eastern Europe], it will be important to know how eurozone governance problems are resolved before making the additional commitment to membership of the eurozone.”

Source: Emerging Markets

Impact on investors Czech koruna to remain in place for now.

New DTT between the Czech Republic and ChinaChina and the Czech Republic have ratified the double taxa-tion treaty (DTT), which will come into effect on 1 January 2012, replacing the current DTT from 1987.

The treaty stipulates the following withholding tax rates for dividends and interest income:

Dividends:- 10% - 5% if the beneficial owner is a company (other than a partnership) which holds directly at least 25% of the capital of the company paying the dividends.

Interest:- 7.5% - 0% if interest is paid to the government, local state authority, central bank of the other contracting state or to a financial institution fully-owned by the government.

Source: Ministry of Finance

Impact on investors Effective as of 1 January 2012, the treaty withholding tax rates for dividends and interest income for Chinese inves-tors will change.

New DTT between the Czech Republic and Hong KongHong Kong and the Czech Republic signed a new double taxation treaty (DTT) on 6 June 2011. The treaty will enter into force after the ratification processes are completed in both countries.

The treaty stipulates the following withholding tax rates for dividends and interest income:

Dividends:- 5% Interest: - 0%

Source: Ministry of Finance

Impact on investors Rates for dividends and interest income for Hong Kong investors about to change in accordance with the new DTT treaty between Hong Kong and the Czech Republic.

Written and edited by: Tímea Sojaková Zimková Relationship Manager Global Securities Services, Czech Republic Tel. + 420 9559 60779 · [email protected]



19

Market Capitalisation HUF 19,353.0bn




SE Turnover (Budapest SE) HUF 519,308.4mn

Monthly Index Performance (BUX) -3.7%





EUR/HUF 265.80



hUNGaRy


Hungary

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 10,427GDP Real 2011e (Change against prev. year in %) 2.63-Month Money Market Rate (current in %) 4.75Inflation in 2011e (yearly average in %) 4.4EUR/HUF 265.80Upcoming Holidays none

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6/30/2011 2:08 PM

BUX

New prospect listings on the Budapest Stock ExchangeTwo Hungarian companies’ shares are to be listed on the Budapest Stock Exchange (BSE) in the near future. Biomedi-cal Computer Technologies Plc., a company engaged in the wholesale of pharmaceutics and pharmaceutical products decided to list its shares on the BSE. The official request was submitted on 30 May 2011. Biomedical was founded with a capital of HUF 5 mn, its subscribed capital has been increased to HUF 805.5 mn in the beginning of 2011, when the nominal/face value of its shares has become HUF 100 instead of the previous HUF 10,000. The Budapest-based company’s operation plant is located in the countryside, in Galgamacsa.

According to the BSE’s announcement, another company, Visonka Manufacture Plc., member of the Phylaxia 1912.Holding Plc. (ISIN HU0000098918) has also decided to have its shares listed on the BSE and for this purpose it submitted its application to the Budapest Stock Exchange on 16 June 2011. Visonka is engaged in the manufacture of animal feed and forage, having its manufacture factory in Páhi, with a reg-istered capital of HUF 460 mn. The company was assorted into KEG Central European LPG Terminal Plc.’s (KEG, ISIN: HU0000096557) in July 2010. KEG’s core activity is lique-fied petroleum gas (LPG) storage and wholesale/retail trade and its shares are listed in category ‘B’ on the BSE. KEG has announced already in March that their aim was to list Visonka’s shares on the Hungarian bourse.

Impact on investors Additional opportunities for investors on the BSE.


20 Hungary

Bonus certificates on the Budapest Stock ExchangeIn the past few years new product types, the so called bonus certificates have appeared in the dynamically developing Hungarian certificate market. Unlike the traditional certificates, in case of these products it is not the loss, but the maximum gain which is limited. Bonus certificates will pay a fixed bonus to the holder of the certificate if the underlying asset did not cross the predefined barrier level and if the performance of the underlying asset is lower than the predefined bonus.

In the Hungarian market there are currently five types of bonus certificates offered for investment on the Budapest Stock Exchange (BSE). The underlying security with which the value of these bonus certificates is linked is in all cases the shares of OTP Bank (ISIN: HU0000061726) and the duration is typi-cally one year. The fixed bonus offered by these instruments is about the 110-115% of the nominal value of the underlying security. The barrier level is usually defined in the 60-70% of the nominal value and if this level is crossed, the guaranteed bonus is lost and the income deriving from the certificate at maturity will be equal to the then prevailing market price of the underlying share.

Impact on investors Bonus certificates may bring an advantageous trading opportunity for investors.

Hungarian Electricity Works to establish gas bourseOn 6 June 2011 the Hungarian Parliaments approved an amendment to Hungary’s energy sector legislation that lays down the intention to establish a gas bourse, called HUGX, latest by January 2013. The establishment and operation of the new gas exchange shall be managed by the state-owned Hungarian Electricity Works (MVM). Both spot and derivate trades will be allowed to conclude on HUGX, and the number of trading participants shall be unlimited.

The currently operating two natural gas trading companies in Hungary – Natural Gas Transmission Company (FGSZ), the gas trader of Hungarian Oil and Gas Company MOL and National Power Line Company (OVIT), the gas trading arm of MVM – will be allowed to own a maximum 10% stake in the new bourse.

FGSZ already operates an OTC gas trading platform as of 1 July 2010 called Daily Natural Gas Capacity Trading Market and at this stage it is not defined whether the new gas exchange will operate on the basis of the OTC platform or if it will be established separately from it.

MVM group aims to become a regionally determinant, strong and successful integrated energetic holding and to support the Hungarian Government’s energy policy goals, which are supply security, the reduction of the country’s energy depend-ence and a sustainable development of energy production and services.

Impact on investors Natural gas bourse HUGX to be in place as of 2013.

Written and edited by: Barbara Rubint Relationship Manager Global Securities Services, HungaryTel. +36 1 301 1914 · [email protected]


21

Market Capitalisation KZT 21,888.8bn

YTD Dev. of Market Capitalisation -9.8%

Number of SE Transactions p.m. 811


SE Turnover (KASE) KZT 12.7bn

Monthly Index Performance (KASE) 1,569.7





EUR/KZT 211.10


Source: Bloomberg

KazaKhSTaN


Kazakhstan

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 6,977GDP Real 2011e (Change against prev. year in %) 5.33-Month Money Market Rate (current in %) 1.75Inflation in 2011e (yearly average in %) 7.2EUR/KZT 211.10Upcoming Holidays none

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6/30/2011 2:08 PM

KASE

EBRD Annual Meeding held in AstanaIn May a meeting of the European Bank for Reconstruc-tion and Development’s (EBRD) Board of Governors took place in Astana, with UniCredit as one of the main sponsors. A UniCredit panel discussing the macroeconomic frame-work of the region featured Mr. Romeo Collina, CEO of ATF Bank, UniCredit economist Mr. Aurelio Macario as well as Mr. Riccardo Puliti, Business Group Director, Energy and Natural Recources at EBRD. The UniCredit evening recep-tion, overlooking the skyline of Astana, was a highlight of the conference.

The EBRD Annual Meeting was attended by representatives of international corporations, governments, local authorities and potential investors.

Impact on investors EBRD expressed its intention to assist Kazakhstan to pro-mote economic diversification and move towards a more sustainable model of financial development.

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


22

KyRGyzSTaN

Market Capitalisation n.a.

YTD Dev. of Market Capitalisation n.a.

Number of SE Transactions p.m. 807


SE Turnover (KSE) KGS 207.5mn

Monthly Index Performance (KSE) 186.9

GDP per Capita (2011 in EUR) 642.58

GDP Real 2011 (Change against prev. year in %) -1.4


Inflation (yearly average in %) 18.80

EUR/KGS 66.51



May trading statistics In May 2011 trade volumes in Kyrgyzstan increased by 93.3% in comparison with the same period of the previous year and made up KGS 0.53 bn (USD 11.7 mn) with 807 trades provided:

Trade volumes on JSC “Kyrgyz Stock Exchange” in May 2011 made up KGS 0.45 bn (USD 10 mn) with 532 trades provided.

Trade volumes on JSC “Kyrgyzstan Stock Exchange – BTC” in May 2011 made up KGS 76.77 mn (USD 1.65 mn) with 275 trades provided.


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


23

Market Capitalisation PLN 578.6bn


Number of SE Transactions p.m. 1,113,212


SE Turnover (WSE) PLN 23.6bn

Monthly Index Performance (WIG20) -0.3%

Monthly Index Performance (WIG) -0.0%





EUR/PLN 3.99



poLaND


Poland

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 10,039GDP Real 2011e (Change against prev. year in %) 4.43-Month Money Market Rate (current in %) 4.60Inflation in 2011e (yearly average in %) 3.5EUR/PLN 3.99Upcoming Holidays none

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6/30/2011 2:08 PM

WIG-20

Changes in autoborrow facility offered by NDSOn 1 July 2011 the National Depository for Securities (NDS) implements some changes in the autoborrow facility offered to its participants. The changes will mainly impact brokers executing on-exchange trades on the WSE, but other market participants may also suffer from them.

Today the vast majority of equity trades is settled on the first DVP session at 10:30 a.m. That is possible as NDS starts autoborrow procedure on that settlement session. If the broker cannot deliver the shares resulting from on-exchange trade on the first DVP session, NDS undertakes to arrange a securities loan allowing for the early settlement of trade, thus the broker may settle the trade avoiding further suspensions on the market. If the shares are delivered to the broker’s account later in the day, the loan is closed and the broker is charged with intraday loan rate, which is 0.02% value of the loan plus PLN 10.

Since 1 July 2011 NDS will initiate autoborrow procedure on the last DVP session at 3:30 p.m. As a result the on-exchange trade that fails to settle on the first DVP session is moved for the next DVP settlement session. If the trade is still open on the last DVP session, NDS organizes an overnight stock loan for the broker or suspend the trade, if the arrangement of the stock loan is not possible. As a result, the broker will not bear any costs if the shares covering the trade are received by the end of the last DVP session. On the other hand this change may cause that less trades are settled during the first settlement session as more trades will remain open until the last session.

All other elements of the settlement procedure applicable to failing trades will remain unchanged. On the last DVP settle-ment session NDS will undertake to arrange a stock loan. If the stock loan is arranged, the broker should close it within 5 business days, otherwise NDS will transfer the collateral to CCP, who in turn will start buy-in procedure. If NDS fails to arrange a stock loan, the trade is suspended for maximum 2 business days, then the shares are repurchased by the NDS on a buy-in market.

Impact on investors Brokers and all other market participants should have in mind two consequences resulting from the change in autoborrow facility. Firstly, as the intraday stock loan will not be offered by the NDS, brokers will no longer suffer from intraday autoborrow charges. On the other hand, more trades can be open until the last settlement session making cash projection and management more difficult.

Written by: Kamil Polak Head of Relationship Management Global Securities Services, PolandTel. +48 225 245 863 · [email protected]



24

Market Capitalisation RON 112.0bn


Number of SE Transactions p.m. 84.226


SE Turnover (Bucharest SE) RON 743.0

Monthly Index Performance (BET/BSE) -7.7%





EUR/RON 4.24



RoMaNIa


Romania

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 5,851GDP Real 2011e (Change against prev. year in %) 1.73-Month Money Market Rate (current in %) 5.34Inflation in 2011e (yearly average in %) 6.1EUR/RON 4.24Upcoming Holidays none

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6/30/2011 2:08 PM

BET

Stock ExchangeLimit in holdings for the SIFs on the radar of the Con-stitutional CourtThe ownership limit for SIFs came to the attention of the Constitutional Court in the context of a legal case between SIF “Transylvania” and the National Securities Commission (CNVM). Capital market arbitrator rejected two years ago, increasing the ownership limit of 1 to 5% for SIF “Transylva-nia”, the General Assembly decided in March 2009, arguing that such a move would be contrary to law. SIF3 sharehold-ers decided then to keep the limit of 1%. Two cases of SIF Transilvania were on the agenda of the Constitutional Court on 16 June 2011.

One was rejected by the Court, and the second about the maximum ownership, still awaits the judge’s decision. Court verdict is awaited with interest by investors, given that a favorable decision SIF “Transylvania” could impact investment growth in the five SIFs, currently limited to 1%.

Impact on investors Ownership limit in SIF’s increase from 1% to 5% in discus-sions at Constitutional Court.

A&D Pharma pays EUR 44 mn for shares listed in LondonA&D Pharma, the biggest pharmaceutical group in Romania, paid EUR 44 mn for around 35% in the company, following a buy-back offer made as part of its delisting from the London Stock Exchange.

The pharmaceutical group this year delisted from the London Stock Exchange, where its shares had been traded since autumn 2006, and made an offer of EUR 4.5 per GDR (Global Depositary Receipts – the certificates traded in London, 1 GDR equals six shares).

Thus, A&D Pharma founders, businessmen Walid Abboud, Roger Akoury, Ludovic Robert and Michel Eid, ended up holding around 97% in the group compared with 61% in the past.

The acquisition was financed through a loan contracted by the group and announced at the beginning of this year, worth EUR 150 mn, from a syndicate led by Erste, BCR and Uni-Credit Tiriac Bank.

Impact on investors A&D Pharma founders have increased their holding to around 97%.


25 Romania

German Henkel group to build third factory in RomaniaThe German group Henkel will build a third factory in Roma-nia, in Roznov city, south-east of Piatra Neamt, with an invest-ment that will amount to EUR 10 mn. Works on the new production unit will begin in October this year, the company has announced. Part of the investment, some EUR 3 mn, will come from structural funds for increasing economic com-petitiveness.

The new Henkel factory will be built on an area of 36,000 sqm and is expected to become operational in November 2012. Once the construction will be complete, Henkel intends to recruit about 80 people for operations in Piatra Neamt, in the second half of next year.

Henkel already owns two adhesives and construction materi-als production units in Romania, in Pantelimon and Campia Turzii. The total production capacity of both factories amounts to 500,000 tones per year. Thus, once the new factory in Piatra Neamt will come into operation, Henkel’s production capacity is expected to increase by 40% to 700,000 tones per year.

Henkel has been active on the Romanian market since 1994 and currently has 490 employees. The group had a turnover of EUR 133 mn last year in Romania.


Central Bank urges adoption of Euro in 2015, Government undecidedThe Romanian Central Bank (BNR) has spoken out in favor of adopting the European currency in 2015.

The Euro might enter circulation in January 2015 and operate alongside the national currency, the RON, for 11 months, a long period of common circulation compared with the two-month or lower intervals allowed by the other European coun-tries which use the Euro.

Impact on investors Euro adoption in Romania under discussion.

Petrom makes first power delivery at new power plant in BraziRomania’s oil and gas company Petrom has recently made the first power deliveries to the network as part of the tests run at the Brazi combined cycle gas fired power plant, the company has announced. This was the final test before start-ing the commercial operations. The investments in this power plant amounted to EUR 500 mn.

On the distribution market of oil products, Petrom Group is present through a network of approximately 800 filling sta-tions, operated under two brands, Petrom and OMV. For the group’s sustainable development, its strategy includes business diversification by approaching the power market. In this context, Petrom is building a 860 MW gas fired power plant at Brazi and acquired the project for the construction of a 45 MW wind park.

In 2010 the group’s turnover was EUR 4.4 bn, while its EBIT profit was of EUR 709 mn.

OMV, one of Austria’s largest listed industrial companies holds a 51.01% share in Petrom. Romania’s Ministry of Economy holds 20.64% of Petrom shares, Fondul Proprietatea holds 20.11% and the European Bank for Reconstruction and Development 2.03% and 6.21% is free float on Bucharest Stock Exchange.

Impact on investors Petrom has started first power deliveries to the grid.

Romgaz to pay the Romanian state dividends for EUR 143 mn from profitRomgaz Medias, one of the most valuable state-owned com-panies that accounts for half of the Romanian natural gas production, is to give EUR 168 mn, 90% of last year’s net profit, plus non-distributed profit from previous years. Most of the money will go to the state budget in the form of dividends. The company will keep only EUR 18 mn for investments.

Impact on investors Romgaz Medias to pay dividends.

Written and edited by: Iuliana Manastireanu Operations & Client Services Global Securities Services, RomaniaTel. +40 21 200 1494 · [email protected]

and: Andreea Albu Operations & Client Services Global Securities Services, RomaniaTel. +40 21 200 2678 · [email protected]


26

Market Capitalisation RUB 17.8trn


Number of SE Transactions p.m. (MICEX) 8,407,610


SE Turnover (MICEX) RUB 6.6trn

Monthly Index Performance (MICEX) 0.0%





EUR/RUB 40.41



RUSSIa


Russia

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 9,055GDP Real 2011e (Change against prev. year in %) 4.33-Month Money Market Rate (current in %) 4.00Inflation in 2011e (yearly average in %) 9.1EUR/RUB 40.41Upcoming Holidays none

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6/30/2011 2:08 PM

RTS

Ministry of Finance to set up Market DepartmentThe Finance Ministry intends to establish a Market Depart-ment to regulate the financial markets. It will be created by separation from the Department of financial policy, and partly – by transferring some powers from the Federal Finan-cial Markets Service (FFMS), and, correspondingly, part of the staff. According to the draft regulation the market is assigned to the Ministry of Finance, supervision and control are assigned to the Federal Financial Markets Service.

Impact on Investors Expected improvements of the financial market supervision.

Ministry of Finance wants to restore primary dealersThe Ministry of Finance is considering the possibility to rebuild the institution of primary dealers. Re-creation of the Institution of Primary Dealers should aim at facilitating the access of foreigners to the state securities of the Russian Federation. Such goal shall require the foreign nominee concept which is currently under discussion between FFMS and the Central Bank of Russia.

Impact on Investors Facilitation of access to the state securities.

Central Bank will allow refinancing in foreign currencyThe Central Bank wants to begin to provide Russian lending agencies with loans to refinance in foreign currency. Many of the world’s central banks now are also considering mon-etary reserves as a source of provision of liquidity in foreign currency. This tool helps to partially hide from exchange rate risks, but in general banks hedge such risks and work in the national currency.

Impact on Investors Reduction of currency risks.


27 Russia

Federal Financial Markets Service demonstrates the principles of liberalization of regulationIn an earlier draft order, released by the Federal Financial Markets Service (FFMS), in late February, it was assumed that the registrars will need to have 250 mn of non-zero personal accounts, in addition to the existing at that moment licensing requirement for the registrar by the presence of 50 clients with more than 500 shareholders. However, after the abolition of raising standards for capital adequacy for brokers and dealers from 1 July, Federal Financial Markets Service is planning to cancel the increase of standards for registrars, including mentioned above quantitative requirements, and stock exchanges. As a result, on 1 July capital requirements will be only raised for management companies and specia-lized custodians.

Impact on Investors Liberalization of licensing requirements for most of market participants.

MICEX to move the start of trading sessionsMICEX has reported that from 27 June 2011 new rules of trading will come into force which enable the Stock exchange to hold basic trading session from 9.00 am to 19.00 MSK, additional session – from 19.00 to 24.00 MSK. The main mode of trades on the MICEX is being held from 10.30 to 18.45 MSK, an evening trading session on the futures market and the RTS Standard – from 19.00 to 23.50 MSK.

Impact on Investors Extended trading hours.

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

MICEX to protect itself from robots MICEX plans to protect itself from excessively active robots. At the moment, more than 80% of the transactions on the exchange are executed by robots. The critical number of operations of bidders, after which MICEX is to disable the ID number, is 150 transactions, or 10 erroneous transactions per second for five minutes. This measure is intended to limit the operation of hyperactive trading robots.

Impact on Investors Additional control for robot trading.


28

Market Capitalisation RSD 919.4bn

YTD Dev. of Market Capitalisation -3.4%



SE Turnover (Belgrade SE) RSD 2.2bn

Monthly Index Performance (Belex 15) 10.7%





EUR/RSD 100.80


Source: Bloomberg

SERbIa


Serbia

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 4,184GDP Real 2011e (Change against prev. year in %) 2.73-Month Money Market Rate (current in %) 12.62Inflation in 2011e (yearly average in %) 9.4EUR/RSD 100.80Upcoming Holidays none

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BELEX15

Eurostat data show Serbia’s GDP per capita to decreaseAccording to the Eurostat press release, available on their official web page, Serbia’s gross domestic product (GDP) per capita, valued in purchasing power standards (PPS), is estimated to be at 35% of the EU27 average in 2010.

Serbia is ranked better than Bosnia-Herzegovina in the West-ern Balkan region, with PPS at 30% and Albania, but is below Montenegro, with PPS of 40%. In 2009, Serbia’s GDP per capita expressed in PPS remained unchanged from 2008, at 37% of the EU27 average.

Impact on investors Eurostat shows that Serbia’s GDP per capita falls to 35% of the EU27 average in 2010 in purchasing power stand-ards.

Serbian Statistics Office to be upgraded by EU-fundingAs local media report, Serbia’s statistics office will be har-monized with the EU-compliant statistics system by August 2011. The necessary funding will be made available by the EU and is worth EUR 1.8 mn, as per statement from Mr. Jose Antonio Gomez, head of operations of the EU Delegation in Serbia.

The new system will provide data necessary for reforms set out in Serbia’s Stabilization and Association Agreement (SAA) with the EU, according to Mr. Gomez. The project will provide infrastructure for production of national accounts and for car-rying out the agricultural census scheduled for 2012. It will also upgrade the Statistics Office IT system and help develop a modern system for publishing statistical data.

Impact on investors Serbian Statistics Office to be aligned with EU-compliant system by August 2011.

Written and edited by: Goran Platiša Senior Corporate Actions and Tax Specialist Global Securities Services, Serbia Tel. +381 11 3028 687 · [email protected]


29

Market Capitalisation EUR 29.8bn


Number of SE Transactions p.m. 458.0


SE Turnover (Bratislava SE) EUR 2.1bn

Monthly Index Performance (SAX/BSSE) -4.5%





EUR/SKK n.a.



SLovaK REpUbLIC


Slovakia

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 13,074GDP Real 2011e (Change against prev. year in %) 3.13-Month Money Market Rate (current in %) -Inflation in 2011e (yearly average in %) 4.1EUR/SKK -Upcoming Holidays none

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6/30/2011 2:08 PM

SAX

Amendment to the Commercial CodeAn Amendment to the Commercial Code aims to decrease the amount of administrative work related to mergers, take-overs and splits of domestic and international joint-stock companies. The amendment simplifies the preparation and submission of merger reports, reporting obligations of joint-stock companies, as well as the rights of shareholders to request copies of specific documents.

Impact on investors Simplfied reporting requirements for M&A transactions valid as of 30 June 2011.

Bratislava Stock Exchange Trading in May 2011In the month of May 2011, the electronic trading system of the Bratislava Stock Exchange (BSSE) was open to members in 22 business days. A total of 617 transactions were concluded in this period, in which 250,170,041 units of securities were traded in a volume surpassing EUR 2.11 bn. In comparison with the previous month, the amount of traded securities fell by 4.21%, while the number of transactions increased by 28.54% and the generated financial volume rose by 18.75%.

All three indicators recorded an increase on a year-on-year basis; the volume even surged by nearly 227%. Similar to pre-vious periods, May 2011 saw negotiated deals dominate over electronic order book (i.e. price-setting) transactions, with the former representing 99.80% of the total trading volume. A total of 159 negotiated deals (in a volume of EUR 2.11 bn) were concluded, as opposed to 458 electronic order book transactions in a financial volume of EUR 4.53 mn.

Not unlike in previous months, investors in May 2011 focused mainly on debt securities, as bond transactions accounted for nearly 99.8% of the total trading volume. A total of 189 bond transactions were concluded in the period under review, in which 250,011,647 units of securities were traded in a finan-cial volume exceeding EUR 2.1 bn. In comparison with April 2011, the number of concluded transactions as well as the achieved volume went up, while the amount of traded securi-ties decreased. All three indicators increased on a year-on-year basis. Negotiated deals in bonds (in a financial volume of EUR 2.1 bn) again significantly dominated over electronic order book transactions (only EUR 325,940.71).

http://www.ulclegal.com/sk/bulletin-pro-bono


30 Slovak Republic

Equity securities of local companies were traded in 428 transactions, in which 158,394 share units changed hands in a financial volume of EUR 4.25 mn. In comparison with April 2011, the amount of traded securities fell by 24.54%, while the number of concluded transactions rose by 24.42% and the financial volume barely changed (-0.08%). Electronic order book transactions (EUR 4.2 mn) prevailed over negoti-ated deals in shares (EUR 49,240.20). Transactions in share issues of Tatry mountain resorts and Best Hotel Properties again generated a significant part (82.04%) of the total volume of share transactions.

A total of 3,607 transactions, in a financial volume of EUR 9 bn, have been cumulatively concluded on BSSE since the start of this year. It represents a 168.64-% increase against the same period of last year.

Transactions concluded by non-residents in May 2011 amounted to 48.78% of the total trading volume, out of which the buy side accounted for 47.45% and the sell side for 50.12%.

The SAX index ended the month of May 2011 at 236.40 points, representing a 4.54-% decline on a month-on-previ-ous-month basis and a 13.29-% increase year on year

Impact on investors May 2011 BSSE trading statistics.

Written and edited by: Zuzana Milanova Head of Global Securities Services Global Securities Services, Slovak RepublicTel. +421 2 4950 3702 · [email protected]



31

Market Capitalisation EUR 21.7mn




SE Turnover (Ljubljana SE) EUR 38.9mn

Monthly Index Performance (SBI TOP) -16.1%







SLovENIa


Slovenia

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 18,577GDP Real 2011e (Change against prev. year in %) 2.53-Month Money Market Rate (current in %) 1.61Inflation in 2011e (yearly average in %) 2.4EUR/RSD -Upcoming Holidays none

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SBI TOP

OECD says Slovenia needs deeper pension reform Due to the costs related to an ageing population, Slovenia is faced with unsustainable public finances in the long term, which is why the pension system needs to be reformed, the OECD said on 7 June 2011, urging the authorities to draw up a new, deeper reform than the one rejected in referendum held on 5 June 2011.

In response to the referendum’s negative vote, the Organisa-tion for Economic Co-operation and Development (OECD) told the STA in a press release that “the rejected pension legislation would have brought many welcome changes, but its budgetary impact, while significant, would have still fallen well short of the projected long-term financing needs”.

The old-age dependency ratio, the ratio of people aged 65 or more to the population aged 15-64, is projected to increase from 23% in 2008 to 62% in 2060.

Meanwhile, the share of the working-age population (aged 15-64) is projected to drop by 32%, compared to a drop of 15% in the EU on average, the OECD quoted data by the European Commission from 2008.

The share of public pension expenditure in GDP currently stands at some 11%, but is expected to reach 20% of GDP by 2060.

Given that changes to the pension system usually start taking effect gradually, the OECD called on the authorities to “act as soon as possible to prepare and implement a new reform package”.

“In order to put long-term public finances on a sustainable footing, the new reform package will have to be more com-prehensive and include more drastic measures than the rejected reform,” the statement says.

According to the OECD, the rejection of the pension reform puts much greater burden on the already strained short-term public finances. As the post-crisis recovery has so far been weak and labour market trends continue to worsen, the pace of consolidation is projected to be slow, the organisation believes.

Even though Slovenia’s position on the international financial markets is not among the worst in the eurozone, the OECD finds it important for Slovenia “to foster investor confidence by ensuring the credibility of the overall strategy”.


32 Slovenia

The OECD therefore urges the authorities to implement »addi-tional fiscal measures, such as prefunding a larger share of future pension liabilities« to head off the risk of sharp increases in long-term interest rates and achieve a sustain-able reduction in the deficit.


Dun&Bradstreet keeps low risk rating for Slovenia International rating firm Dun&Bradstreet (D&B) preserved Slovenia’s low risk rating and leading position in the region in its June 2011 report. While dismissing comparisons with Portugal as exaggerated, D&B says that the rejection of the pension reform will result in higher taxes or higher deficits.

The report, which labels the rating as stable, mentions government plans for EUR 6 bn worth of investments into transport infrastructure, especially the railways and the Luka Koper port, a restructuring of the DARS motorway company, attempts to integrate the public transportation system and changes in higher education and D&B.

While the defeat of the pension reform will surely have conse-quences, D&B feels that comparisons with Portugal made by PM Borut Pahor are exaggerated, as Slovenia’s public debt to GDP ratio is only a third of Portugal’s.

“However failure to implement the reforms will result either in higher taxes, which are detrimental to growth...or (more likely) higher deficits than previously planned,” the agency wrote, noting that this can only be a temporary fix.

D&B is noticing that popular opinion is in favour of change in power, but notes that »a new administration will face the same problems as the current one«. Its only advantage would be having the popular backing to push through reforms that the current government lacks.

Impact on investors International rating firm Dun&Bradstreet (D&B) preserves Slovenia’s low risk rating and leading position in the region.

Written and edited by: Barbara Zajc Senior Relationship Manager Global Securities Services, SloveniaTel. +386 1 5876 453 · [email protected]


33

Market Capitalisation (PFTS) UAH 248.8bn

YTD Dev. of Market Capitalisation (PFTS) -2.4%

Number of SE Transactions p.m. (PFTS) 7,704

YTD Dev. of SE Transactions (PFTS) -86.0%

SE Turnover (PFTS) UAH 1.2bn

Monthly Index Performance (PFTS) -8.6%





EUR/UAH 11.56



UKRaINE


Ukraine

Market Capitalisation HRK 397.2 bnYTD Dev. of Market Capitalisation 2.307Number of SE Transactions p.m. 96000YTD Dev. of SE Transactions 7.107SE Turnover (Zagreb SE) HRK 5977.5 mnMonthly Index Performance (Crobex/ZSE) 0.017GDP per Capita (2011e in EUR) 2,792GDP Real 2011e (Change against prev. year in %) 5.03-Month Money Market Rate (current in %) 6.38Inflation in 2011e (yearly average in %) 11.0EUR/UAH 11.56Upcoming Holidays none

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PFTS

Fitch rated Ukraine’s Eurobonds ‘B’Fitch Ratings has assigned Ukraine’s USD 1.25 bn Eurobond a ‘B’ rating.

The maturity date is 17 June 2016; the Eurobond has a coupon rate of 6.25%.

The rating is in line with Ukraine’s long-term foreign currency Issuer Default Rating (IDR), which has a stable outlook.

Fitch notes that Ukraine’s economic growth has been sus-tained, international reserves are growing and public finances are outperforming the budget.


Creation of sole information system for securities market participantsThe strategy group of securities and stock market state com-mission (SSMSC) decided to create a sole information system for securities market participants. The especially formed working group will develop the concept and the new project of regulation.

The main objectives of the system creation are to inform cli-ents, monitoring of keeping the rules by market participants, summing up of statistic information. Its main principles should be easy accessibility, authenticity, and periodicity.

At the end of June the working group should review the model of such information system and start the discussion with market participants.

Source: Interfax – Ukraine


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



34

yoUR CoNTaCTS

Regional 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]

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]

Michael Slavov Tel: +43 50505 58511 [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]

Bosnia and HerzegovinaUniCredit Bank d.d. Global Securities Services Zelenih beretki 24 71 000 Sarajevo Bosnia and Herzegovina

Lejla Sabljica Tel. +387 33 491 777 [email protected]

Amra Telacevic Tel. +387 33 491 816 [email protected]

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

Yavor Dojdevski Tel. +359 2 923 2670 [email protected]

Veselin Stefanov Tel. +359 2 923 2818 [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]


35 Your Contacts

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

Michal Stuchlik Tel. +420 955 960 780 [email protected]

Dita Safarova Tel. +420 955 960 778 [email protected]

Tomas Vacha T. +420 955 960 777 [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]

Barbara Rubint Tel. +36 1 301 1914 [email protected]

Agnes Temesvari Tel. +36 1 301 1838 [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 (0194) [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 22 524 58 61 [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]


36 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

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

Rastislav Rajninec Tel. +421 2 4950 2424 [email protected]

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

Vanda Mocnik-Kohek Tel. +386 1 5876 450 [email protected]

Elmedina Garibovic Tel. +386 1 587 65 97 [email protected]

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

UkrainePJSC UniCredit Bank 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


37

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 accu-racy 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 investors 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 Bank-ing 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


38

IMpRINT

Statement pursuant to the Austrian Media Act Publisher and Media Owner

Corporate & Investment Banking Global Transaction Banking UniCredit Bank Austria AG Global Securities Services Julius Tandler-Platz 3 A-1090 Vienna Tel. +43 50505 0

Information requirements pursuant to the Austrian E-Commerce Act

Registered office and postal address Schottengasse 6 – 8 A-1010 Vienna

Swift: BKAUATWW Austrian bank code: 12.000

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

Kind of business Credit institution under section 1 (1) Austrian Banking Act

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

Membership Austrian Federal Economic Chamber, bank and insurance division Wiedner Hauptstraße 63 A-1040 Vienna http://www.wko.at Austrian Bankers’ Association A-1013 Vienna, p.o.box 132 http://www.voebb.at;

Applicable legal regulations Applicable legal regulations are in particular the Austrian Banking Act (“Bankwesengesetz – BWG”, Federal Law Gazette/BGBl. No. 532/1993, with some amendments), the Austrian Securities Supervision Act (“Wertpapieraufsichtsgesetz – WAG”, Federal Law Gazette/BGBl. No. 753/1996, with some amendments) an the Austrian Savings Banks Act (“Sparkassengesetz”, Federal Law Gazette/BGBl. No. 64/1979, with some amendments).

VAT identification number ATU 51507409

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