GSS NEWSLETTER - Custody | UniCredit Group

GSSNEWSLETTERISSUE 118February 2011

Issue 118, February 2011

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CoNTENTDEaR CLIENTS 4HR aNNoUNCEmENT 6JoHN'S CoRNER 7aUSTRIa 8CEE Stock Exchange Group looks back at a successful year 2010 8DO & CO is the first foreign stock in Istanbul 9

BELaRUS 10Belarus can place Eurobonds for USD 1 bn in March 10New provisions on state property privatization adopted in Belarus 10

BoSNIa aND HERzEGovINa 12Ten years since the payment system reform in Bosnia and Herzegovina 12Decision of the CBBH Governing Board on reduction of the required reserves rate 13New composition of SASX-10 13

BULGaRIa 14UniCredit Bulbank’s Primary Dealer Status Re-Confimed for 2011 14Amendments to the Law on Commerce 15CDAD Presents Plans to Introduce a New Securities System 15

CRoaTIa 16Parliament approved new ministers, deputy prime ministers 16Croatia’s Agrokor places EUR 150 mn tranche of bond 16Croatians can open bank accounts abroad as of January 2011 17

CzECH REpUBLIC 18The CNB comments on the December 2010 inflation figures 18Czech state debt up at CZK 1,344 bn in 2010 19Extension of the trading hours on the Prague Stock Exchange 19

HUNGaRy 20Hungary Holds EU Presidency in the First Half of 2011 20Swiss Franc-Based Certificates Listed on the BSE 21OTP Bank Remains in the CEERIUS Index also in 2011 21

KazaKHSTaN 22Fitch affirms Kazakhstan ratings, changes forecast to positive 22S&P upgrades long-term credit ratings of Kazakhstan and Development Bank of Kazakhstan, outlook - stable 22

KyRGyzSTaN 23


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poLaND 24WSE Ranked Second Most Active Primary Market in Europe 24Partial Settlement for Cross-Border Transfers 25

RomaNIa 26Fondul Proprietatea was listed on 25 January on the Bucharest Stock Exchange 26President Traian Basescu promulgated the law on budgetary salaries for 2011 27EC issued a favorable opinion for units 3 and 4 of the Cernavoda Nuclear Plant 27IMF approved the disbursement of the seventh trance amounting to EUR 905 mn 27The regional development ministry made a preliminary announcement for a RON 13.87 bn auction under the National Infrastructure Development Plan 27

RUSSIa 28Market participants appeal to privatization on domestic market 28Ministry of Finance published the order on creation of a single financial regulator 28Federal Financial Markets Service has specified a list of insider information 29Ministry of Finance simplifies access to OFZ market for investors 29

SERBIa 30End of Year Consumer Price Index 30Long Term Credit Line with the World Bank 31Serbia’s Budget Deficit smaller than expected 31

SLovaK REpUBLIC 32Bratislava Stock Exchange Trading in December 32Bratislava Stock Exchange ranking for the year 2010 33Revision of SAX Index Base 34

SLovENIa 35Tax Refund Form for Beneficial Owners from non-DTT Countries 35Ljubljana Stock Exchange published validity of new LjSE Rules 35Slovenian Economy Expands by 1.7% Y7Y in Q3 36

UKRaINE 37US to allocate USD 124 mn to Ukraine for reform 37

yoUR CoNTaCTS 38DISCLaImER 41ImpRINT 42


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DEaR CLIENTS

Vladimir Vassilyev (Head of GSS Kazakhstan)

I am very happy to open with this Newsletter a new year and share with you the results of the year 2010 and what is waiting for us in the new year.

For Kazakhstan, the past year was a year of trial. Having survived global financial crisis in 2008 and depression in 2009 Kazakhstan learned its lesson and in 2010 tried to make changes in market infrastructure, both legal and technical, to make the financial system more stable and more comfortable for investors.

The major achievement, in which ATFBank played the most active role, was the creation of a new settlement system on the Kazakhstan Stock Exchange which will allow to avoid defaults on trades. The new system is called Full Prepayment Settlement System. This system is based on the preliminary before the trades on KASE starts depositing cash and securi-ties for trading. The system will not allow sending a buy/sell order if the client does not have cash/securities deposited on his trading account.

Implementation of this system is the first step in a long proc-ess of settlement cycle transition from T+0 to T+3, which is more comfortable for foreign investors. The system will be fully implemented on KASE in summer 2011.

In November 2010 KASE started derivatives trading. The first derivative traded was USD/KZT Futures. Futures market development is another step in attracting foreign investors in Kazakhstan and in creating more comfortable conditions for them by giving them an opportunity to hedge currency risks.

Speaking about 2010 results Kazakhstan's market showed a very good performance in comparison to 2009. Trade volumes increased by 33.9% and reached USD 206 bn. REPO operations volumes increased by 22% and reached USD 86 bn.

Interest in Kazakhstan by foreign investors increased signifi-cantly. Their share in trade volumes rose from 1% in 2009 to 5% in 2010.

Many financial problems especially in the banking system were successfully solved in 2010. Two major banks in Kazakhstan, BTA Bank, the biggest player in the economy, and Allianz Bank, the fourth biggest bank, were almost bank-rupt and Kazakhstan government provided support to those banks. With its help both of them managed to restructure their debts in 2010 and overcome financial problems. All other banks who received government support in 2008–2009 have already paid it back in 2010.

The financial system was fully recovered in 2010 which has been acknowledged by rating agencies. Standard and Poor’s upgraded sovereign credit ratings of Kazakhstan from BBB- to BBB in foreign currency and from BBB to BBB+ in local currency with stable outlook.


5 Dear Clients

As for what is waiting for us in 2011, I guess it will be the year of fast and steady market growth. Financial stabilization, international trade improvement, rise in production achieved in 2010 will be a solid basis for investments inflow in securities market, both domestic and foreign. The year 2011 will be first of all a year of boost in IPO. Government policy is focused on stimulating government companies, especially oil production companies, to attract investments in the local market by issu-ing new stocks and bonds. Potentially, the local market can generate funds in the amount of USD 5–7 bn. Seeing good perspectives in IPO regarding its advantages for government companies, private companies will also go for IPOs on the local market.

Speaking of ATFBank, the year 2010 was already a year of growth. Assets under custody increased by 22% and market share of ATFBank increased to 10%. ATFBank steadily occu-pies the place of the 4th biggest custodian in the market of 10 custodians. However, this is not the end. For 2011 ATFBank has a very clear business plan to grow further and fight for a bigger market share. Having better IT solutions, offering all-inclusive service which covers not only pure cus-tody services but also brokerage in all types of securities, cash management, F/X, deposits and loans as well as private banking, actively lobbying clients’ interests, ATFBank has recommended itself as a reliable partner who cares about its clients and offers them high quality services.

Concluding, I would like to wish all of you prosperity and happiness in the New Year 2011.

Vladimir VassilyevHead of GSS Kazakhstan


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DEaR CLIENTS

We would like to congratulate Matej Letko, former Head of GSS Slovakia, for his promotion as head of the newly formed Financial Institutions Group in UniCredit Bank Slovakia.

The new Head of GSS Slovakia will be Zuzana Milanová who has been active in this business since 1995. Over the years, Zuzana has established a strong reputation in GSS Relation-ship Management. After her university graduation in 1994 she has been working for UniCredit Bank Slovakia in various positions including Treasury Back Office, Custody & Financial Institutions and Global Securities Services Departments.

We would also like to welcome Rastislav Rajninec, who has joined GSS Slovakia as a new Relationship Man-ager. Rastislav started his career in custody in 1994 at C eskoslovenská obchodní banka as a Custody Account Manager, from where he moved to ING Bank in Bratislava to work as a Financial Institutions & Securities Services Account Manager in 1998. Subsequently, he has performed various functions within ING Bank including the senior positions of Securities Services Department Head and Head of Financial Institutions.

Best regards,

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

Attila Szalay-Berzeviczy (Global Head of Global Securities Services)

Matej Letko (Head of Financial Institutions Group)

Zuzana Milanová (Head of GSS Slovakia)

Rastislav Rajninec (Relationship Manager Slovakia)


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JoHN'S CoRNER

John Gubert

The welcome recent announcement by the Bucharest Stock Exchange that it will now offer Bloomberg Global Identifiers reminds us of the complexity of the entire stock numbering process in markets around the world. The front office uses Bloomberg and Reuter identifiers but the back and middle office use ISIN codes. These different identifiers all follow a different logic.

Bloomberg alone covers 11.2 mn securities. Eight of the twelve digit codes they use are a randomly assigned alpha-numeric with a three digit Bloomberg ID (BBG) and a single digit check code. Reuters adopts market specific codes (e.g. a CUSIP in the US) plus an Exchange Identifier. For ISIN the first two characters are the country code, the next nine are the local number (or zeros at the start if the local number is less than nine digits) and the final one is a check digit.

It is confusing enough to have three main codes which adopt a different basic logic for each security (as well as the myriad of local national codes that exists); but the problem does not end there. Moreover, it impacts a sizeable minority of the 1 bn plus trades a month, handled by electronic order books around the world.

There are issues concerning timeliness and availability of the different codes. The definition of the country of issue varies – some being based on the legal place of issue of the security and others on the exchange(s) used to trade the securities. And, with globalisation and the growth of off market activi-ties, the problem is compounded by the use of “dummy” identifiers that are perhaps (but not invariably) substituted by “official” identifiers later.

However, why should this all be a top problem issue for custodian, investor and broker back offices? There are three main reasons. Firstly, markets are becoming ever more frag-

mented. Secondly, trading is no longer home market based. And thirdly, the trade to settlement life-cycle will inevitably contract. The fragmentation of markets leads to identifier changes in some front office based codes. Globalisation means that the place of trading is no longer a national phe-nomenon. This impacts the process of settlement (but not always of the identifier code) – entitlements, delivery pro-cedures and security type may change. The reduction of trade to settlement time frames, especially in high value trad-ing spaces, means that identification of securities (with new issues being a particular headache) becomes ever more critical in close to real time.

So what options should be examined? Logically, a head banging exercise with Reuters, Bloomberg and the memo-rably named “ANNA” (Association of National Numbering Agencies) should solve the problem. But Bloomberg and Reuters are unlikely friendly partners and ANNA is a techni-cal purist rather than a key component of a multibillion dollar transaction process. If head banging will not work, we do need golden copy translation services where each BGI, ISIN, local identifier or RIC is cross referenced even if, in some cases, there will be a one to many relationship. Who will carry this burden? There are few candidates, but SWIFT is a logical provider of such database; or, alternatively, perhaps the role could be undertaken by one or several of the major global depositories.

John Gubert


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Market Capitalisation EUR 91.9bn

YTD Dev. of Market Capitalisation 11.9%

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

YTD Dev. of SE Transactions n.a.

SE Turnover (Vienna SE) EUR 3.1bn

Monthly Index Performance (ATX/VSE) -2.3%

GDP per Capita (2011 in EUR) 35,169

GDP Real 2011 (Change against prev. year in %) 2.0

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

Inflation in 2011 (yearly average in %) 2.0

Upcoming Holidays none

Source: Thomson Datastream

Source: Bank Austria, National Statistics

aUSTRIa

CEE Stock Exchange Group looks back at a successful year 2010The CEE Stock Exchange Group (CEESEG) can look back at a busy and successful year 2010. In January 2010, the four stock exchanges of Vienna, Budapest, Ljubljana and Prague were integrated as subsidiaries into the holding company, CEESEG AG. In March, the first medium-term project – the bundling of data vending operations for the entire Group – was completed with the integration of the price data of the Prague Stock Exchange into the data dissemination system of the Vienna Stock Exchange. Twenty-one customers were acquired for the four CEESEG stock exchanges and the seven other stock exchanges of the data alliance.

CEESEG achieved another milestone in December with the implementation of the trading system Xetra® on the Ljubljana Stock Exchange. With this changeover, now two of the four stock exchanges of CEESEG use the Xetra® trading system. Prague and Budapest will follow with the changeover.

At year-end, the CEESEG accounted for almost half of total market capitalization and around one-third of total trading volume in equities in Central and Eastern Europe, making it the largest stock exchange group of the region. The suc-cess of the group is based on the good results of each of the partner exchanges.

Budapest Stock Exchange As of 31 December 2010, market capitalization on the Buda-pest Stock Exchange was EUR 20.9 bn, and average monthly equity turnover EUR 1.7 bn. Last year, there was one IPO on Budapest Stock Exchange – CIG Pannonia – and five listings without public offering as well as ten capital increases.

Ljubljana Stock Exchange As of 31 December 2010, equity market capitalization on the Ljubljana Stock Exchange was EUR 7 bn, and average monthly equity turnover EUR 41mn. There was one new list-ing, Agrogorica d.d, in 2010 as well as 5 capital increases. LJSE admitted to membership two new international trading members.

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) 35,169GDP Real 2011e (Change against prev. year in %) 2.03-Month Money Market Rate (current in %) 1.00Inflation in 2011e (yearly average in %) 2.0.../EUR -Upcoming Holidays none

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9 Austria

Written and edited by: Thomas Rosmanitz Head of Relationship Management Austria Tel. +43 50505 58515 · [email protected]

Prague Stock Exchange As of 31 December 2010, market capitalization on the Prague Stock Exchange was EUR 55.03 bn, and average monthly equity turnover EUR 1.28 bn. There was one IPO on the Prague Stock Exchange – Fortuna – and one listing without raising capital as well as five capital increases.

Furthermore, in July 2010, the Prague Stock Exchange started operation of its 100% subsidiary, the new Central Securities Depository Prague, which features many innova-tions and extensive services.

Vienna Stock Exchange As of 31 December 2010, market capitalization on the Vienna Stock Exchange was EUR 91.86 bn, and average monthly equity turnover EUR 3.05 bn. In the previous year, the Vienna Stock Exchange acquired seven new trading members. There are now 55 international banks admitted to trading on the Vienna Stock Exchange that account for almost 65% of equity turnover.

There were no IPOs on the Vienna Stock Exchange in 2010, but six companies were included in trading on the Third Market and six capital increases were carried out.

(Source: Wiener Borse)

Impact on investors For information purposes only.

DO & CO is the first foreign stock in Istanbul Following a successful international offering amounting to EUR 68 mn, the Austrian restaurant and catering company DO & CO became the first foreign stock on the Istanbul Stock Exchange. In total, 1,948,800 new shares and 147,078 treasury shares were allocated.

The transaction volume (including the over-allotment shares) was more than 8 times subscribed, with demand from insti-tutional investors in the UK and Poland as well as in Austria and Turkey particularly strong. As a result of the transaction, the free float of the Company will increase from currently 19% to far above 40%.

DO & CO intends to use the net offer proceeds to strengthen the company for investments and position it for an increase in its market presence and potential acquisition opportunities.


mailto:[email protected]


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Market Capitalisation USD 12.0bn

YTD Dev. of Market Capitalisation n.a.

Number of SE Transactions p.m. (BCSE) 1,706

YTD Dev. of SE Transactions 42.8%

SE Turnover (BCSE) BYR 2,286bn

Monthly Index Performance (BCSE) -33.5%

GDP per Capita (2011 in EUR) 399


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


BYR/EUR 0.00025



BELaRUS

Belarus can place Eurobonds for USD 1 bn in MarchThe Ministry of Finance of Belarus confirms plans to place Eurobonds for USD 1 bn in the first half of 2011. “Most likely, the placement will be possible not earlier than March, if it happens on Asian markets,” – said a spokesman of the Ministry of Finance.

The representative of the Ministry recalled that in Novem-ber-December 2010, Belarus has technically been ready to place bonds in Asian markets (Singapore, Hong Kong) for the sum of USD 500 mn, but the deal was canceled because of increased market volatility in connection with the conflict between North and South Korea.

Impact on investors Possible investment opportunities.

New provisions on state property privatization adopted in BelarusThe government of Belarus has accepted the decisions on certain issues of state property privatization and transforma-tion of state enterprises.

Decree of the Council of the Ministers N-° 1929 was adopted on 31 December 2010. This decree approves several provi-sions that regulate certain issues of state property privatiza-tion and transformation of state unitary enterprises into joint stock companies. The following amendments are introduced:

1. The order of determining the initial selling price of shares,

2. The order of tender process,

3. The order of auctions establishment for the sale of objects of privatization,

4. The order of tenders establishment for the sale of objects of privatization,

5. The order of procedure of the tender on the transfer of belonging to the Republic of Belarus or administrative-territorial unit of shares of open joint-stock companies in asset management, including the redemption of those shares as a result of trust management.


11 Belarus

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

In addition, the decree approved the list of print mass media, which will publish plans of privatization, plans of transforma-tion of state unitary enterprises into joint stock companies, notices about successful tender and auctions as well as information about the objects of privatization. Furthermore, in accordance with the new law information about buyers and conditions of the sale of objects of privatization should be published.

Impact on investors Improvements of legislative framework on issues of state property privatization and transformation of state enter-prises.


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Source: Bloomberg

Market Capitalisation (Sarajevo SE) BAM 7.2bn


Number of SE Transactions p.m. 1,444

YTD Dev. of SE Transactions -38.3%

SE Turnover (SASE) BAM 20.8mn

Monthly Index Performance (SAX-10/SASE) 6.4%

Market Capitalisation (Banja Luka SE) BAM 3.7bn

YTD Dev. of Market Capitalisation -0.7%



SE Turnover (BLSE) BAM 45.7mn

Monthly Index Performance (BIRS/BLSE) 5.6%





BAM/EUR 2.01


BoSNIa aND HERzEGovINa


Ten years since the payment system reform in Bosnia and HerzegovinaOn 5 January 2011 it has been ten years since the reform of the payment system in Bosnia and Herzegovina (BH), which is one of the most successful reforms in the banking sector and one of the most successful reforms in general in Bosnia and Herzegovina.

The reform of the payment system was conducted in a record period of time and BH was the first country in the region that has changed to a completely new system. In BH, on 5 January 2001, the payment system was transferred from the payment bureaus to the commercial banks and the Cen-tral Bank of Bosnia and Herzegovina (CBBH) and payment bureaus stopped performing this function.

The CBBH provided the most modern systems for conclud-ing the interbank payment transactions, being the RTGS, i.e. the system for settlement in real time, which means that a payment order is settled at once after sending it from one bank to another and a client’s money is available immediately, and the gyro clearing system in which there is a multilateral settlement in three daily cycles. All orders could be settled via the RTGS, in accordance with the client’s needs, but orders amounting over BAM 10,000 are subject to the obligatory RTGS settlement, while gyro clearing enables only settle-ments of orders up to BAM 10,000.

During the past ten years, the payment system has operated in full capacity, without any problems and in that period it has recorded processing of around 233 mn interbank transac-tions (5.4 mn via the RTGS and 227.6 mn via gyro clearing) being worth KM 438.8 bn (BAM 334.5 bn via the RTGS and BAM 104.3 bn via gyro clearing system).

Source: Central Bank of Bosnia and Herzegovina

Impact on investorsFor information purposes only.

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 2.01Upcoming Holidays none

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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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13 Bosnia and Herzegovina

Decision of the CBBH Governing Board on reduction of the required reserves rate The Governing Board of the Central Bank of Bosnia and Herzegovina (CBBH) reached the decision to reduce the required reserves rate on deposits, which are included in the base for calculation of required reserves and with the maturity up to one year, from 14% to 10%. The required reserves rate on term deposits for the period longer than one year remains at 7%.

According to the decision, the additional liquid funds for com-mercial banks should amount to around BAM 300 mn, which should have an indirect effect on the liquidity of the real sector. The decision enters in force as of day of its publish-ing in the Official Gazette of BH and shall be implemented from 1 February 2011.

Impact on investorsFor information purposes only.

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

New composition of SASX-10 The first regular revision of the SASX-10 index in 2011 was conducted on 7 January. There has been the following change – the share RMU Banovici d.d. Banovići (RMUKR) was replaced by the share Tvornica cementa Kakanj d.d. Kakanj (TCMKR).

SASX-10’s new composition as of 10 January 2011 is as fol-lows: BH Telecom d.d. Sarajevo (BHTS), JP Elektroprivreda BiH d.d. Sarajevo (JPESR), JP Elektroprivreda HZHB Mostar (JPEMR), Hrvatske Telekomunikacije d.d. Mostar (HTKMR), Bosnalijek d.d. Sarajevo (BSNLR), Fabrika duhana Sarajevo d.d. Sarajevo (FDSSR), Energoinvest d.d. Sarajevo (ENISR), Energopetrol d.d. Sarajevo (ENPSR), IK Banka d.d. Zenica (IKBZRK) and Tvornica Cementa Kakanj d.d. Kakanj (TCMKR).

SASX-10 is the benchmark index of the Sarajevo Stock Exchange reflecting trends in the prices of top ten shares listed in the market. One stock has a maximum share of 20% in the index.

Impact on investorsRegular revision of the SASX-10 conducted.



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Market Capitalisation BGN 10.8bn




SE Turnover (Bulgarian Stock Exchange) - December 2010

BGN 293.1mn

Monthly Index Performance (SOFIX) 1.7%





EUR/BGN 1.96


BULGaRIa



UniCredit Bulbank’s Primary Dealer Status Re-Confimed for 2011UniCredit Bulbank’s Primary Dealer status for Government Securities was re-confirmed for 2011 after the Ministry of Finance completed its annual review and selection proc-ess. UniCredit Bulbank has been a Primary Dealer since the inception of the Government Securities market. The bank is a full participant in the relevant systems of the Bulgarian National Bank:

■■ Government Securities auction system

■■ Electronic system for registration and Servicing of trans-actions in Government Securities (ESROT)

With more than 13% participation in the primary market of Government Securities, UniCredit Bulbank is among the insti-tutions with the largest market share, and one of the most active participants.

The Primary Dealers are the institutions which take part in Government Securities auctions, the primary market of Government debt. Auctions are organized by the Bulgarian National Bank in its role of fiscal agent of the Government. The Central Bank makes announcements of upcoming auctions in Government Securities at least 3 days before the auction day, and Primary Dealers can bid on their own account or on account of clients with competitive and non-competitive bids. The Primary Dealership status of participants is reviewed on an annual basis and applicants must meet certain pre-set criteria including market share in the Government Securities market and operational standards.

The Ministry of Finance published its 2011 Government Securities policy. According to the document, the Govern-ment will continue to publish a monthly issuance calendar offering BGN and EUR-denominated Government Securities, giving priority to mid-term issues (47% of total) and long-term issues (45% of total). The maturities of short-term issues (8% of total) are to be diversified to 3-month and 6-month discount bills. The gross amount of new domestic Govern-ment debt issues is planned to be within the range of about BGN 1,000 mn (EUR 511 mn).

Impact on investors Investment opportunities in Government Securities. Proof of UniCredit Bulbank’s dedication and role in the market.

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 %) 3.18Inflation in 2011e (yearly average in %) 3.2EUR/BGN 1.96Upcoming Holidays none

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15 Bulgaria

Amendments to the Law on CommerceAt the end of 2010 Parliament adopted amendments to the Law on Commerce, the basic company law which defines the types of business entities, their legal registration and transac-tions between them. The amendments aim to ensure trans-parency of company ownership and transpose the 2009 EU directive on reporting and documentation requirements in the case of mergers and divisions. In practical terms the amendments affect mainly physical shares.

All shareholders of a company issuing registered shares must be identified in the company’s book of shareholders, which shall at all times contain complete and up-to-date informa-tion of the holders of registered shares. The legal provision applies to companies which issue the definitive shares and provisional certificates. The latter are issued instead of the definitive shares but show the same title ownership. The legal representatives of the company are obliged to register in the book of shareholders all changes in shareholders and their details within 7 days of receipt of documents for the transfer in compliance with the law and the company’s Articles. The person who acquires shares or a pledge over shares is also obliged to inform the company and make an application to the company within 7 days of acquiring such legal rights. The owners of registered shares and provisional certificates whose shareholdings have not been registered in the book of shareholders before the changes to the Law on Commerce were enacted must apply for registration with the company until the end of March 2011, within 3 months of entry in force of the amendments.

The amendments also enact measures to reduce the admin-istrative burden on companies which undergo a conversion (merger or division). The companies will not be required to issue a report on the conversion if their shareholders / stake holders confirm in writing their consent. The amendments set the opportunity to provide the conversion plan, the report of the management, of the examiner and other reports elec-tronically in a way that allows shareholders to download and print them.

Creditors to converting companies are granted stronger legal protection by providing the right to the creditors to file for enforcement of claims against the converting company.

Impact on investorsMore transparency and enforceability of shareholder rights, introduction of a 7-day period for registration of physical shares.

CDAD Presents Plans to Introduce a New Securities SystemThe Central Depository AD (CDAD) presented plans to introduce a new securities system tentatively scheduled for 1H 2011, after successful testing with the market. The presentation was made before a select audience of market participants including the Bulgarian Stock Exchange, the Association of Banks in Bulgaria, the Association of Licensed Investment Intermediaries, and representatives of banks including UniCredit Bulbank.

CDAD is ambitious to introduce a completely new software system for securities registers, settlement and clearing. Among other items the new system is planned to allow:

■■ opening of more than one account in the same name at the CDAD

■■ regulation of the maintenance of omnibus accounts

■■ separation of settlement from registration

■■ clearing agency services

The changes imply simultaneous amendments in CDAD’s Rules and Procedures and co-ordination of the process with the Financial Supervision Commission to review impact on other regulations.

Impact on investorsPossible enhancements of the securities infrastructure.

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


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CRoaTIa

Market Capitalisation HRK 193.6bn




SE Turnover (Zagreb SE) HRK 2,137.9mn

Monthly Index Performance (Crobex/ZSE) 18.1%





EUR/HRK 7.40




Parliament approved new ministers and deputy prime ministersMartina Dalic is the new Finance Minister, Davor Bozinovic the new Defence Minister, Branko Bacic the new Environmental Protection, Physical Planning and Construction Minister, and Jasen Mesic the new Culture Minister.

The parliament majority also gave a vote of confidence to Domagoj Milosevic as Deputy Prime Minister in charge of major investment projects, Agriculture Minister Petar Cobankovic as Deputy Prime Minister in charge of the econ-omy, and to Foreign Minister Gordan Jandrokovic as Deputy Prime Minister. After the voting, new ministers were sworn in.

The main motive for the government reshuffle was the rein-forcement of its economic team and the accomplishment of one of the government’s goals – recovery from the economic crisis – the other goal being the completion of the country’s EU accession talks and the signing of the accession treaty in 2011. Prime Minister Kosor thanked the outgoing minis-ters – Finance Minister Ivan Suker, Defence Minister Branko Vukelic, the Minister of Environmental Protection, Physical Planning and Construction Marina Matulovic Dropulic, and Culture Minister Bozo Biskupic, for their dedication to what she described as a difficult and unrewarding job in the execu-tive authority over many years.

Impact on investorsGovernment reshuffle approved by the Parliament.

Croatia’s Agrokor places EUR 150 mn tranche of bondAgrokor has placed on the international market a EUR 150 mn (USD 201 mn) tranche from a seven-year bond that matures in 2016, local media reported. The first tranche, worth EUR 400 mn was issued at the end of 2009.

Impact on investorsAgrokor issues new bond worth EUR 150 mn.

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 %) 2.8Inflation in 2011e (yearly average in %) 2.3EUR/HRK 7.40Upcoming Holidays none

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17 Croatia

Croatians can open bank accounts abroad as of January 2011As of 01 January 2011, Croatia’s citizens can open bank accounts abroad and carry out transactions via them, according to the Amendments Law on foreign exchange operations, which took effect on 01 January 2011.

The amendments brought changes in the liberalization of deposited money operations of residents and the use of foreign currency loans via accounts opened abroad. In order to transfer money to an account abroad, Croatians will have to open a bank account in foreign countries in accordance with regulators of the country where they intend to have the account and to give the payment order to a bank in Croatia to transfer money.

Representatives of the Croatian Banking Association (HUB) do not believe that these changes in legislation will lead to larger-scale transfers of savings deposited from Croatia to banks abroad. The HUB says that Croatian banks keep offer-ing attractive interest rates on savings accounts.

Impact on investorsNew laws and amendments to the existing one are aimed at liberalisation of deposited money operations of residents and the use of foreign currency via accounts opened aboard.

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



18

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 88.4bn

Monthly Index Performance (PX) 9.6





EUR/CZK 24.43



CzECH REpUBLIC


The CNB comments on the December 2010 inflation figuresAccording to figures released on 10 January 2011, the price level increased by 2.3% year on year in December 2010. In line with the CNB’s expectations, headline inflation thus increased compared to November and stands slightly above the CNB’s inflation target. Monetary-policy relevant inflation, i.e. inflation adjusted for the first-round effects of changes to indirect taxes, recorded a similar increase; at 1.2% in December, it was in the lower half of the tolerance band around the inflation target.

Annual headline inflation was 0.1 percentage points higher in December 2010 than the CNB’s current forecast. The deviation of the actual figure from the forecast was due mainly to higher-than-expected growth in fuel prices, reflecting oil price growth on world markets. By contrast, the CNB had expected a slightly higher contribution of food and regulated price growth to inflation than was reported. Annual adjusted inflation excluding fuels was in line with the forecast.

The December data showed that annual headline inflation was – in line with the CNB’s forecast – close to the inflation target at the end of 2010. According to the CNB’s forecast, headline inflation should stay very close to the target over the coming two years. In the first half of 2011, monetary-policy relevant inflation will also converge to the CNB’s inflation target.

Source: CNB

Impact on investorsInflation comes in slightly above CNB forecast in December 2010.

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 %) 0.99Inflation in 2011e (yearly average in %) 2.1EUR/CZK 24.43Upcoming Holidays none

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19 Czech Republic

Czech state debt up at CZK 1,344 bn in 2010Per capita debt is almost 128,000. In 2009, the state debt grew by CZK 179 bn. Among the reasons for the debt growth were state bond issues. The Finance Ministry issued state bonds worth CZK 167.4 bn on the domestic market and state bonds worth CZK 49.7 bn on foreign markets last year, keep-ing its plan for 2010. The government also drew loans from the European Investment Bank (EIB) totalling CZK 10.4 bn during the year.

The volume of monetary instruments in circulation last year grew to CZK 25.1 bn. In Q4 alone, the state debt decreased by about CZK 40 bn. This was mainly due to the fact that the ministry focused on issuing state bonds mainly in Q3, when conditions on the market were advantageous.

Net debt servicing costs amounted to CZK 35.6 bn, while the budget had reckoned with more than CZK 56 bn.

“The saving of about CZK 20 bn was achieved mainly thanks to the fact that after the establishment of the new cabinet and its pledge to cut public budget deficits, investors charged lower risk premiums and the Czech Republic became most trustworthy,” ministry spokesman Ondrej Jakob said.

Short-term state debt rose by 1.4 percentage points to 16.1% in the course of 2010. This means the target level of 20% was maintained, the ministry said. The average maturity of the state debt fell to 6.3 years at the end of 2010, staying within the planned interval of 5.5 to 7 years. The so-called tradable state debt increased by nearly CZK 157 bn to almost CZK 1,280 bn.

According to the ministry’s state debt financing and manage-ment strategy, the ministry wants to borrow CZK 220 bn this year, almost CZK 219 bn next year and CZK 207 bn in 2013. On foreign markets, the ministry wants to borrow no more than 40% of the government’s gross borrowing need, that is roughly CZK 88 bn, this year. The ministry also plans to make a pilot issue of state bonds for citizens worth CZK 10 bn at the most.

Source: CTK

Impact on investorsNew state bonds to be issued by the Ministry of Finance of the Czech Republic.

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

Extension of the trading hours on the Prague Stock ExchangeStarting from 1 February 2011 Prague Stock Exchange will change its trading hours. There will be a 20-minute exten-sion of the trading day. It will be newly possible to execute trades until 4:20 p.m. (instead of 4:00 p.m.) in the Continual Regime (KOBOS), SPAD and also within Block Trades. Clos-ing auction for selected securities will be from 4:20 p.m. until 4:27 p.m. (previously from 4:00 p.m. until 4:07 p.m.). Con-tinual PX Index calculation will take place from 9:11 a.m. until 4:27 p.m. (instead of 9:11 a.m. until 4:07 p.m.). Official Price List will be newly published at 5:15 p.m. (formally 5:00 p.m.).

Please refer to the below link for the new trading hours: http://www.pse.cz/Novinky/Detail.aspx?ka=2430

Source: PSE

Impact on investorsThe trading hours on the Prague Stock Exchange will be extended as of 1 February 2011.


http://www.pse.cz/Novinky/Detail.aspx?ka=2430


20

Market Capitalisation HUF 18,500.4bn




SE Turnover (Budapest SE) HUF 573,906mn

Monthly Index Performance (BUX) 0.2%





EUR/HUF 274.58



HUNGaRy


Hungary Holds EU Presidency in the First Half of 2011Improved fiscal rigour, enlargement in the European Union (EU), energy security and a Roma strategy will be the key topics during Hungary’s six-month presidency of the Euro-pean Union Council having started on 1 January 2011. The Hungarian government held a joint session with leading officials from the European Commission in Budapest on 7 January 2011 in order to establish their primary common objectives during this half-year.

Economic questions, such as, establishing a permanent EU financial stability mechanism as well as setting up a “Euro-pean Semester” for economic policy coordination, will be at the centre of Hungary’s EU presidency. The “Europe 2020” strategy – the EU’s plan to boost growth and employment – will also be put into practice for the first time during the period.

EU enlargement, the second item on the priority list, will require a stimulation of “enlargement optimism” which will include confidence in the integration of the Balkan countries. The Hungarian presidency supports Croatia’s EU member-ship and Romania’s and Bulgaria’s bid to join the visa-free Schengen-zone. Serbia, too, will be given a clear perspective regarding its future membership. Hungary backs Belgium’s aim of including Iceland and Turkey into the EU, as well.

Energy issues include plans to link Slovak and Hungarian gas pipelines and in the long-term to create a north-south energy network from Poland to Croatia.

Besides the above issues, Hungary would like to start debates among member states on common agricul-tural policy, cohesion policy and transportation in the trans-European TEN-T network.

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 %) 5.16Inflation in 2011e (yearly average in %) 4.4EUR/HUF 274.58Upcoming Holidays none

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21 Hungary

Hungary is one of the three countries forming the first Trio Presidency in the EU, jointly with Spain and Belgium. The concept of Trio Presidency was introduced by the Lisbon Treaty as of 1 January 2010 in order to ensure the continuity of the EU agenda. The cooperation of the trio is determined by the 18-month program of the Presidency that consists of two parts: the strategic context, which summarizes the main political goals of the Trio; and the operative program, which elaborates the elements of the strategic context in detail. The three countries’ cooperation is setting a precedent in the EU.

Member States discussed the preparation for the Energy Summit to be held in February, as well as an Economic Summit in March.

Impact on investors Hungary fulfils the duty of EU presidency in the first half of 2011.

Swiss Franc-Based Certificates Listed on the BSEAs of 20 December 2010 the Budapest Stock Exchange (BSE) has introduced the trading of Swiss Franc-based cer-tificates issued by Erste Investment on the parquet. Besides the already circulating EUR/HUF and USD/HUF certificates on the BSE this newly launched instrument is the first one linked to the CHF/HUF exchange rate.

Trade in certificates on the Hungarian bourse was launched in 2008. At present, 35 certificates from two issuers are listed on the exchange based on 16 underlying products, such as oil, gold, the DAX index and different Hungarian shares.

Impact on investorsInvestors may find a new investment opportunity on the BSE following the introduction of the Swiss Franc-based certificate in December 2010.

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

OTP Bank Remains in the CEERIUS IndexAfter 2009 and 2010, OTP Bank (ISIN: HU0000061726) will be included in the CEERIUS sustainability index of the Wiener Börse in 2011 again. The CEERIUS (CEE Responsible Index Universe) is composed of the leading listed companies evalu-ated by the sustainability research of RFU (Reinhard Friesen-bichler Unternehmensberatung) considering social, ecological and economic aspects. Among the member companies of the index OTP’s weight of over 23.66% is the largest, and the other Hungarian company represented in the index, Hun-garian Telekom (ISIN: HU0000073507) has a 9.63% portion. Besides the Hungarian companies the index comprises of six Slovenian, three Croatian, one Czech and one Romanian listed corporation.

Impact on investorsOne of the Hungarian blue-chip companies, OTP Bank will remain in the CEERIUS index of the Wiener Börse also in 2011, the third year in a row.


22

Market Capitalisation KZT 11,998.5bn


Number of SE Transactions p.m. 915


SE Turnover (KASE) KZT 32.7bn

Monthly Index Performance (KASE) 1,706.3





EUR/KZT 196.57


Source: Bloomberg

KazaKHSTaN


Fitch affirms Kazakhstan ratings, changes forecast to positiveFitch Ratings has revised the outlooks on Kazakhstan’s long-term foreign and local currency Issuer Default Ratings (IDR) from stable to positive and affirmed the ratings at “BBB-” and “BBB”, respectively. The agency has also affirmed the short-term foreign currency IDR at “F3” and the Country Ceiling at “BBB”.


S&P upgrades long-term credit ratings of Kazakhstan and Development Bank of Kazakhstan, outlook - stableStandard & Poor’s raised its long-term foreign and local cur-rency sovereign credit ratings by one notch to ‘BBB’ and ‘BBB+’ from ‘BBB-’and ‘BBB’, respectively. At the same time, S&P affirmed the ‘A-3’ short-term foreign currency rating and the ‘KzAAA’ national scale rating on Kazakhstan. It also raised the short-term local currency rating to ‘A-2’ from ‘A-3’ and revised the transfer and convertibility assessment to ‘BBB+’. In tandem with the sovereign upgrade, Standard & Poor also raised its foreign and local currency issuer credit ratings on the Development Bank of Kazakhstan (DBK) to ‘BBB’ and ‘BBB+’ from ‘BBB-’ and ‘BBB’, respectively. The outlook on Kazakhstan and DBK remains stable.

Impact on investorsThe revision to Kazakhstan’s outlook reflects its continu-ing recovery from the severe impact of the global financial crisis, which is evident in its economic growth, improved balance of payments position, some signs of stabilisation in the banking system, a reduction in the budget deficit and strengthening in the sovereign’s balance sheet.

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

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 %) 1.74Inflation in 2011e (yearly average in %) 7.2EUR/KZT 196.57Upcoming Holidays none

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23

KyRGyzSTaN

Market Capitalisation n.a.

YTD Dev. of Market Capitalisation n.a.


YTD Dev. of SE Transactions 66.6

SE Turnover (KSE) KGS 192.8mn

Monthly Index Performance (KSE) 105.9

GDP per Capita (2011 in EUR) 1,457.19




EUR/KGS 61.85



Business activityIn December 2010 KSE trades volume increased and made up KGS 192.82 mn (USD 4.09 mn) with 185 trades provided.

Trades volume on JSC “Kyrgyz Stock Exchange” for December 2010 made up KGS 12.00 mn (USD 0.25 mn) with 78 trades provided.

Trades volume on JSC “Kyrgyzstan Stock Exchange - BTC” for December 2010 made up KGS 180.82 mn (USD 3.83) with 107 trades provided.

There were no trades on JSC “Central Asian Stock Exchange” for December 2010.

Impact on investorsMinimal changes of the business activity in the Kyrgyzstan market for December 2010.

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


24

Market Capitalisation PLN 542.7bn


Number of SE Transactions p.m. 1,042,901


SE Turnover (WSE) PLN 37.8bn

Monthly Index Performance (WIG20) 5.1%

Monthly Index Performance (WIG) 4.7%





EUR/PLN 3.87



poLaND


WSE Ranked Second Most Active Primary Market in Europe The Warsaw Stock Exchange (WSE) has been ranked as the second most active market in terms of the number of initial public offerings. The latest IPO Watch Europe report prepared by PwC shows that only London Stock Exchange conducted more IPOs than Warsaw that saw debuts of 26 companies entering the main market and 86 firms being listed on NewConnect (alternative trading system run by WSE).

Moreover, two Polish IPOs – namely PZU and Tauron – were ranked among the top ten in the European IPO statistics in 2010.

Table 1. Number and Value of IPOs on European Stock Exchanges(jointly on the regulates and alternative market)

European IPO Market in 2010 European IPO Market in 2009

Exchange # IPOsValue (€ M)

Exchange # IPOsValue (€ M)

LSE Group 123 12 650 WSE 38 1 594

WSE 112 3 808 NYSE Euronext 36 1 908

Luxembourg 37 797 LSE Group 25 1 660

NYSE Euronext 32 417 Luxembourg 20 1 296

OMX 24 2 029 Nasdaq OMX 11 66

Deutsche Boerse 24 2 413 Borsa Italiana 6 137

Oslo Bors 16 2 445 Deutsche Boerse 5 53

BME 12 1 562 SIX Swiss 4 –

SIX Swiss 4 417 BME 3 19

Wiener Boerse 1 38 Oslo Bors 2 91

Athens SE – – Athens SE 1 10

Source: PricewaterhouseCoopers, IPO Watch Europe reports, Q1–Q4 2010

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 %) 3.90Inflation in 2011e (yearly average in %) 3.5EUR/PLN 3.87Upcoming Holidays none

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25 Poland

Written by: Krzysztof Pekrul Relationship ManagerTel. +48 22 5245864 · [email protected]

Table 2. Top10 IPOs in Europe in 2010

No. Company IPO Value (€ M) Market

1 Enel Green Power 2 264 Italy & Spain

2 PZU 1 990 WSE

3 Essar Energy PLC 1 485 LSE Group

4 Gjensidige Forsikring 1 356 Oslo

5 Amadeus 1 317 BME Group

6 Pandora 1 227 OMX

7 Tauron PE 1 026 WSE

8 Vallar 822 LSE Group

9 Kabel Deutschland Holding 660 Deutsche Boerse

10 Brenntag 650 Deutsche Boerse

Source: PricewaterhouseCoopers, IPO Watch Europe reports, Q1–Q4 2010

“In the coming years, we want to remain one of the most attractive European stock exchanges for issuers. The WSE has for years maintained this position for companies in dif-ferent sectors, of different sizes, and at different stages of growth, and increasingly for issuers from the entire region of Central and Eastern Europe,” said WSE CEO Ludwik Sobolewski.

Impact on investorsBooming IPO market attracts new investors to the WSE and creates new investment possibilities.

Partial Settlement for Cross-Border TransfersThe National Depository for Securities (NDS) introduced par-tial settlement for cross-border transfers in stocks that are registered in foreign registrars and dually listed in Poland. There are currently 27 foreign issuers listed on the main market of the Warsaw Stock Exchange (WSE) and 3 foreign companies listed on Newconnect market.

Since some of the stocks are registered in the markets that provide for partial settlement (e.g. United Kingdom), NDS has decided to implement such functionality for cross-border transfers with these markets.

Thanks to the newly introduced settlement scheme it will be possible to receive/deliver part of the instructed holdings that is actually available for delivery without a need to amend the original instruction. NDS will confirm to its participants each time part of the instructed holding is settled. Instruction delivered by NDS participant will remain valid until the entire quantity is settled.

It is expected that partial settlement can streamline settle-ment of cross border transfers from/to markets that utilize this functionality.

Impact on investors Thanks to this new functionality it will be possible to settle cross-border transfers in multiple shapes on the basis of one settlement instruction. It should minimize the number of failing trades in case stocks from the transfer are in need for immediate settlement of on-exchange transactions.

Please note partial settlement only concerns cross-border transfers (it is not possible to settle local transactions unless the entire instructed holding is available for delivery).


26

Market Capitalisation RON 102.4bn




SE Turnover (Bucharest SE) RON 440.9mn

Monthly Index Performance (BET/BSE) 3.4%





EUR/RON 4.26



RomaNIa


Fondul Proprietatea was listed on 25 January on the Bucharest Stock ExchangeThe main trends on the 2011 capital market will be deter-mined by the listing of Fondul Proprietatea (Property Fund - FP), which will increase visibility of the Bucharest Stock Exchange in the region and will force the main market participants (Stock Exchange, brokers, regulator, as well as investors) to modernize.

The listing of Fondul Proprietatea (FP) has been the most awaited event on the Stock Exchange. Now the FP listing is a certainty. The listing prospectus was approved at the end of last year and the brokers who intermediate the listing at BSE for Fondul Proprietatea were: Raiffeisen Capital & Invest-ment, BRD and ING Bank, while the fund management is with Franklin Templeton.

The listing in January will enable most of the effects of this event to be felt on the Stock Exchange by the end of the year. They will be both quantitative effects, such as an increase in the capitalization, in the free float (shares of a public com-pany freely available to the investing public) and in the value of transactions, as well as in the number of local and foreign investors.

Impact on investors New investment opportunities.

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 %) 5.23Inflation in 2011e (yearly average in %) 6.1EUR/RON 4.26Upcoming Holidays none

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27 Romania

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

President Traian Basescu promulgated the law on budgetary salaries for 2011President Traian Basescu promulgated on 28 December 2010 the law on the state budget for 2011, the law on budg-etary salaries for 2011, the general law on unitary salaries and the law approving ordinance 50/2010 all declared constitu-tional by the Constitutional Court. The President also passed the law on social insurance budget for 2011.

Impact on investorsBudget Law for 2011 was approved.

EC issued a favorable opinion for units 3 and 4 of the Cernavoda Nuclear Plant The European Commission issued a favorable opinion for units 3 and 4 of the Cernavoda Nuclear Plant in accordance with article 43 of the EURATOM treaty, Economy ministry informs. EC remarked that the investment complies with objectives of the EURATOM treaty and contributes to the development of the regional energy mix.

The analysis took 18 months during which European spe-cialists visited Cernavoda, had several technical talks with specialists of the nuclear plant and had several meetings with Romanian officials.

Impact on investorsDevelopment of regional energy mix.

IMF approved the disbursement of the seventh trance amounting to EUR 905 mnThe executive board of the IMF completed the sixth review of the stand-by agreement with Romania and approved the dis-bursement of the seventh part in the amount of EUR 905 mn, bringing the total disbursements under the Stand By Agree-ment to EUR 12.2 bn, of the total EUR 13.15 bn agreed initially. According to the IMF’s press release, the Board approved Romania’s request for a new waiver of non-observ-ance for the government arrears for end-December. A new IMF delegation is expected in Bucharest on 25 January to review the current arrangement and hold talks with Romanian authorities on a new, one-year precautionary deal.

Impact on investorsMoney entry expected from IMF.

The regional development ministry made a preliminary announcement for a RON 13.87 bn (EUR 3.2 bn) auction under the National Infrastructure Development PlanThe plan will be carried out in the period 2011–2020 and will include among others, the construction of 10,000 km of local and regional roads, the construction of water and sewage networks in 1,500 villages and another 860 projects developed by public authorities in rural area that meet the standards for EU funding, but exceeded the available budg-ets. The ministry invited the contractors to seek additional financing since the government will pay for the conducted works as of 2013. The national plan was approved by the government under emergency ordinance 105/2010. Con-tracts will be awarded as of 1 February.

Impact on investorsInvestments on infrastructure Development Plan.



28

Market Capitalisation RUB 17.6trn


Number of SE Transactions p.m. (MICEX) 9,436,042


SE Turnover (MICEX) RUB 6.8trn

Monthly Index Performance (RTS) 6.5%





EUR/RUB 40.01

Upcoming Holidays 23 February


RUSSIa


Market participants appeal to privatization on domestic marketNational Association of Securities Market Participants (NAUFOR) has worked out the following proposals to amend the legislation framework in order to force the companies to perform IPO within the privatization program on the Russian market:

1. To specify obligation of primary (secondary) public offer-ings in Russia in case of privatization of their shares.

2. To remove all restrictions for the shares placed in Russia on its conversion into depositary receipts and vice versa. Now the limit for companies from the quotation A1 list is 25%, for all others – 5%.

3. To fix minimum quota of the securities that must be pri-vatized by selling them to Russian citizens.

4. To implement a foreign nominee concept.

Impact on investorsPossible amendments in legislation framework in the sphere of privatization of state companies.

Ministry of Finance published the order on creation of a single financial regulatorThe new order draft on creation of a financial Mega-regulator was published by the Ministry of Finance on 11 January 2011. The order draft stipulates the merge of Federal Financial Markets Service (FFMS) and Federal Insurance Supervisory Authority (FISA) into the new body - Federal Financial Services (FFS). According to the draft order the financial market shall be regulated by the Ministry of Finance and supervised by FFS and the Bank of Russia.

Impact on investorsPossible mega-regulator formation on the base of FFMS and FISA.

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 %) 3.85Inflation in 2011e (yearly average in %) 9.1EUR/RUB 40.01Upcoming Holidays none

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29 Russia

Federal Financial Markets Service has specified a list of insider information FFMS has prepared a draft order, specifying a list of insider information, a proper document posted on the site of the service.

The regulator has identified a list of insider information that must be disclosed in accordance with the Law on Insider Information – insider information is to be disclosed by the following market participants:

■■ companies, whose securities are traded on the stock exchange,

■■ management companies, whose mutual funds are traded on the exchange;

■■ economic entities with dominant position on the market;

■■ stock exchanges;

■■ clearing institutions;

■■ lending institutions;

■■ custodians;

■■ professional participants of the securities market and per-sons, performing transactions with financial instruments in the interests of customers that have received insider information from customers.

Also, the regulator has identified a list of insider information, which may have information and rating agencies.

Earlier, Vladimir Milovidov, Head of FFMS, reported that FFMS will prepare about 20 statutory acts with refinements to the Law on insider information. Mr. Milovidov also noted that 70-80% of the insider information definitions had been already listed in the law “On disclosure of substantial facts”.

Impact on investorsImprovement of legislative framework on the insider information.

Ministry of Finance simplifies access to OFZ market for investorsExpert Advisory Group of the Ministry of Finance on the issues of Federal Loan Bonds (T-Bonds/OFZ) market devel-opment suggested allowing OTC trading of OFZ and also separate trading of coupons and principals. Besides, Expert Advisory Group offered to specify the opportunity to imple-ment T+n settlement for OFZ.

The Ministry of Finance confirmed that work of further simpli-fication of access of investors to the Russian market will be continued in order to increase liquidity and attract new investors, both foreign and Russian.

Impact on investorsPossible modernization of the OFZ Market.

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


30

Market Capitalisation RSD 933.5bn



YTD Dev. of SE Transactions 7,365.9%

SE Turnover (Belgrade SE) RSD 2.6bn

Monthly Index Performance (Belex 15) 0.5%





EUR/RSD 104.94


Source: Bloomberg

SERBIa


End of Year Consumer Price IndexAccording to the announcement of the Serbian Statis-tics Office, the country’s consumer price index (CPI) for December 2010 increased to 10.3% year-to-year and 0.3% comparing to the previous month. Serbian Central Bank (NBS) year-end CPI target, as Serbian official measure of inflation, was 6% plus or minus 2%, as previously announced during 2010.

The public health service prices influenced the largest monthly increase in December, of 1.9%. At the same time, the prices of different products and goods increased 0.6%, excise prod-ucts and communications additional 0.5% and various serv-ices increased 0.4% against November 2010.

In late December, the NBS projected to keep end of year CPI growth around 10.5%, quoting previously released retail prices and living costs data. According to earlier reports, Serbia’s CPI for November 2010 increased 1.5% compared to the previous month and 9.9% compared to December 2009.

Impact on investorsThe Serbian Statistics Office published the country’s end of year 2010 consumer price index.

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 %) 13.00Inflation in 2011e (yearly average in %) 9.4EUR/RSD 104.94Upcoming Holidays none

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31 Serbia

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

Long Term Credit Line with the World BankAccording to Ms. Biljana Chroneos-Krasavac, Serbia’s rep-resentative at the World Bank, Serbia expects to receive between USD 800 mn and 1 bn. The funds will be provided under the next 4-year country partnership strategy, effective as of July 2011.

The provided funds are intended to support the state budget, further support country reforms and for the government’s priority investment projects. Finance Minister Ms. Diana Dragutinovic stated earlier that negotiations with the World Bank regarding a loan for covering Serbia’s 2011 budget deficit will be completed in January 2011.

Ms. Chroneos-Krasavac also said that the International Monetary Fund (IMF) has discussed its activities in Serbia after the expiration of stand-by arrangement in April 2011. She noted that these actions are important for Serbia, as they guarantee the country’s macroeconomic stability. Ms. Chroneos-Krasavac added that the issue will be resolved in consultations between the IMF, the government and the NBS. Ms. Dragutinovic expressed interest in entering another deal with the IMF once the current stand-by deal, worth some EUR 3 bn, expires.

Impact on investorsWorld Bank and Serbia to arrange new lending line under 4-year country partnership strategy.

Serbia’s Budget Deficit smaller than expected The Serbian Ministry of Finance announced that the country’s 2010 budget deficit is approximately RSD 107.7 bn, with revenues at RSD 662 bn and spending at RSD 769.7 bn. The revised 2010 budget projected a deficit of RSD 120 bn, with revenues at RSD 660 bn and costs at RSD 780 bn.

Revenues from value-added tax (VAT) were RSD 319.3 bn in 2010, excise taxes at RSD 135.6 bn and personal income tax at RSD 75.2 bn. The 2011 budget forecasts total revenues of RSD 724.4 bn, costs RSD 844.9 bn and RSD 120.5 bn budget gap, according to earlier reports.

The Ministry of Finance data show that Serbia’s public debt reached EUR 12.2 bn at the end of 2010, or 41.5% of the country’s gross domestic product (GDP). The state’s direct debt amounts to EUR 10.5 bn, with the internal debt at EUR 4.57 bn and external debt at EUR 5.89 bn. Serbia’s indirect debt at the end of the year was EUR 1.71 bn. In 2009, Serbia’s public debt was approximately EUR 9.85 bn.

Impact on investors Serbia’s end of year 2010 budget deficit amounts to RSD 107.7 bn, cutting down the forecast for RSD 12.3 bn.



32

Market Capitalisation EUR 28.1bn


Number of SE Transactions p.m. 1,250.0


SE Turnover (Bratislava SE) EUR 0.5bn

Monthly Index Performance (SAX/BSSE) 2.5%





EUR/SKK n.a.



SLovaK REpUBLIC


Bratislava Stock Exchange Trading in DecemberIn December 2010, the members of the Bratislava Stock Exchange (BSSE) used the electronic trading system in 22 business days. A total of 1,250 transactions were con-cluded in this period, in a financial volume of EUR 527.77 mn. Although the number of concluded transactions decreased against the previous month by 3.33%, the financial volume increased by 49.82%. On a year-on-year basis, the number of transactions increased by 174.12% and the achieved volume decreased by 61.2%. Similar to previous months, the month of December 2010 saw negotiated deals dominate over elec-tronic order book (i.e. price-setting) transactions, with the former representing 98.43% of the total trading volume. A total of 235 negotiated deals in a volume of EUR 519.49 mn were concluded, as opposed to 1,015 electronic order book transactions in a financial volume of EUR 8.28 mn.

The month under review did not in any way differ from pre-vious periods as bond transactions continued to generate nearly 98% of the achieved volume. A total of 154 bond transactions were concluded, in a financial volume exceeding EUR 516 mn. Only the number of transactions decreased in comparison with the previous month (-1.91%), while the volume rose by 48.04%. The number of transactions increased on a year-on-year basis by +30.51%, while the financial volume dropped by 59.37%. Bond transactions were again dominated by negotiated deals (in a financial volume of EUR 514.46 mn), with electronic order book transactions lagging behind with a volume of EUR 1.54 mn.

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33 Slovak Republic

Equity securities of local companies were traded in 1,096 transactions, in a financial volume of EUR 11.76 mn. Com-pared to November 2010, the number of transactions fell by 3.52%, whereas both the achieved volume and the amount of traded securities rose by more than 200%. In comparison with December 2009, on the other hand, the number of transactions increased by over 224%. The financial volume sunk by tens of percents in the same comparison.

Transactions concluded by non-residents in December 2010 represented 45.80% of the total trading volume.

As of the last trading day of the month under review, the market capitalisation of equity securities recorded a 0.09% increase on a month-on-previous-month basis to EUR 3.1 bn. The market capitalisation of bonds amounted to EUR 24.95 bn, representing a 0.16% increase on a month-on-previous-month basis.

The SAX index ended the month of December 2010 at 230.38 points, representing a 2.45% increase on a month-on-previous-month basis and a 13.71% decrease year on year.

Impact on investors BSSE performance in December 2010.

Bratislava Stock Exchange ranking for the year 2010UniCredit Bank ranked second in total turnover at the Bra-tislava Stock Exchange (BSSE) in the year 2010 reaching EUR 3.650 mn or 26.86% of the total turnover at BSSE. Broken down to securities classes, UniCredit Bank ranked eighth in turnover in equities with 0.6% market share and second in turnover in bonds with 27.8% market share.

Total turnover of BSSE in the year 2010 reached the value of EUR 13.59 bn (by 42.39% less than in the same period last year) in 7,769 transactions, of which shares were bought and sold in the total value of EUR 460.55 mn (3.39% of total turnover) in 6,187 transactions, while bonds recorded total turnover of EUR 13.13 bn (96.61% of total turnover) in 1,582 transactions.

Impact on investorsUniCredit Bank affirmed its dominant position on the capital market.


34 Slovak Republic

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

Revision of SAX Index BaseA regular revision of base composition of the SAX Index was made on 10 January 2011 in compliance with the Rules of Construction of SAX Index. The revision was aimed at evalu-ating the development of trading of the SAX Index’s basic components in the second half-year 2010 and setting a base for the next 6-month period.

The Commission made following decisions:

■■ Approved current valid base by accepting the maximum 20% weight of each participant in the SAX Index basket.

■■ Set the adjustment coefficients to the equal value.

Name of company Abbreviation Number of securities in issue

before revisionNumber of securities in issue

after revision

Biotika BSL 983 199 983 199

OTP Banka Slovensko OTP 11 503 166 11 503 166

SES Tlmac e SES 1 565 345 1 565 345

Slovnaft SLN 1 262 027 1 974 837

VÚB VUB 1 027 651 1 110 846

Tatry mountain resorts SKI 1 807 426 2 159 603

Best Hotel Properties SRA 7 193 555 8 093 593

Impact on investors New base of the SAX Index will come into force on 1 February 2011.



35

Market Capitalisation EUR 20.4mn




SE Turnover (Ljubljana SE) EUR 52.0mn

Monthly Index Performance (SBI 20) 7.6%







SLovENIa


Tax Refund Form for Beneficial Owners from non-DTT Countries Tax Administration of the Republic of Slovenia has published on their web page: http://www.durs.gov.si/ the form “Claim for Refund of Tax on Income from Dematerialised Financial Instruments under Article 383.d Paragraph 1 of the ZDavP-2 (Law on Tax Procedure)” and detailed description of pro-cedures for refund on income from dematerialised financial instruments, paid by the person, who has received it for a third-party account. The form for tax refund is used for ben-eficial owners eligible for benefits under the Slovene legislation or under other treaty, that is non-DTT and the procedure for tax refund is not yet prescribed (for example: tax refund for clients from non-DTT countries).

Impact on investorsOne step ahead in implementation of new tax procedure applicable from 1 July 2010.

Ljubljana Stock Exchange published validity of new LjSE RulesThe Ljubljana Stock Exchange Rules (Off. Gazette RS No. 88/10), which took effect on 20 November 2010 and include transitional provisions stating their delayed entry into use, and the Ljubljana Stock Exchange Instructions as published on the LJSE website, entered into use on the day the stock exchange launched trading system Xetra, on 6 December 2010.

Impact on investorsNew LJSE Rules and Instructions are valid as of 6 December 2010.

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 %) 1.00Inflation in 2011e (yearly average in %) 2.4EUR/RSD -Upcoming Holidays none

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http://www.durs.gov.si/


36 Slovenia

Slovenian Economy Expands by 1.7% Y7Y in Q3Slovenia's economy expanded at an annual rate of 1.7% in the third quarter on the back of continuing export growth, the Statistics Office said on Tuesday. Quarterly growth adjusted for season and working days stood at 0.3%, down from 1.1% in the second quarter. The annual growth rate in the third quarter slowed from 2.2% a quarter ago, when Slovenia emerged from recession after six consecutive quarters of negative growth.

“The pace of growth has been losing strength since the second quarter, which means that growth in the third quarter was more or less symbolic,” head of national accounts at the Statistics Office Karmen Hren told the press.

But the news of slowing growth has not caused alarm among policy-makers, with both Finance Minister Franc Krizanic and the Institute of Macroeconomic Analyses and Development (IMAD) saying it was to be expected. Krizanic said that the data are comparable to an average in the EU, where the main problem continues to be lagging investment spending. According to the Statistics Office, exports were again the driv-ing force of growth, rising by as much as 10.5% compared to the third quarter last year. But Hren pointed out that “exports are the only contributor to growth, with other elements being either neutral or negative.”

Investment spending fell by as much as 9.3% compared to last year, marking the eighth consecutive quarter of con-traction. Spending in the construction sector continued to contract by as much as 15% per quarter, with investment in housing down by 25% on the same period last year.

“There is no sign of an upturn in construction at the moment,” Hren said.

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

On the other hand, there was some positive movement in investment in equipment, plant and machinery, which rose by 1% in the third quarter. “This was expected, as the recovery in spending on equipment and machinery is usually quicker than in building and structures.” Additionally, growth was slowed by continuing contraction in total consumption, which was down 0.2%. “This basically represents stagnation,” said Hren, explaining that household spending was down by 0.5%, while government spending was virtually unchanged.

IMAD, the government's macroeconomic think-tank, said that domestic consumption remained the main hurdle to quicker growth. It reiterated that “conditions on financial markets were increasingly important in limiting investment activity.” Krizanic meanwhile expects economic growth to persist despite the third-quarter cooling. He believes that exports will continue to be the main engine of growth. The only danger for growth is the value of the euro against other foreign currencies and savings in countries that represent important markets for Slovenia, he told the STA.

“If the optimism has returned in sufficient quantity and if investments - including private - continue to grow in key eurozone countries, we are well on the way to recovery.”

Meanwhile, data from the Statistics Office show that import growth slowed in the third quarter, standing at 5% year-on-year, which is nearly 50% less than in the previous quar-ter. Through the first three quarters of this year, Slovenia's economy expanded by 0.9% when compared to the same period last year. Hren stressed that Slovenia is therefore on track to achieve the forecast economic growth of 1% for the year. But she added that this was not yet having an effect on employment. “The question is when growth will pull up employment. There is no significant positive outlook in this respect for the next year, 18 months.”

Impact on investorsSlovenia is on track to achieve the forecast economic growth of 1% for 2011.


37

Market Capitalisation (PFTS) UAH 254.9bn

YTD Dev. of Market Capitalisation (PFTS) 14.0%

Number of SE Transactions p.m. (PFTS) 54,122

YTD Dev. of SE Transactions (PFTS) 4.1%

SE Turnover (PFTS) UAH 8.3bn

Monthly Index Performance (PFTS) 16.3%





EUR/UAH 10.61



UKRaINE


US to allocate USD 124 mn to Ukraine for reform According to a statement posted on the website for U.S. government support programmes to other countries – www.foreignassistance.gov, the United States will allocate USD 124.4 mn to Ukraine in 2011 to support reforms.

Out of this amount, USD 44.6 mn will be spent on peace and security programmes, USD 28.8 mn on democracy, human rights and governance, USD 24 mn on health programmes, USD 25.1 mn on economic development, USD 1.3 mn on humanitarian assistance and USD 600,000 on education and social services.

As the statement reads, ‘The broad goal of U.S. assistance in Ukraine is to support a democratic, prosperous, and secure Ukraine, fully integrated into the Euro-Atlantic community.’

It is regarded as the largest amount Ukraine has ever received from the United States to support reforms.

In 2010, Ukraine received USD 123.1 mn from the United States, in 2009 – USD 99.4 mn, in 2008 – USD 117.9 mn, in 2007 – USD 95.1 mn, and in 2006 – USD 100.1 mn.

Impact on investors US to financially support reforms in Ukraine.

Source: Interfax 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 %) 7.00Inflation in 2011e (yearly average in %) 11.0EUR/UAH 10.61Upcoming Holidays none

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

http://www.foreignassistance.gov



38

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


39 Your Contacts

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


40 Your Contacts

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

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

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

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

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

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

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

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

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

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

UkraineOJSC 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


41

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

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

Note to UK Residents:

In the United Kingdom, this publication is being communicated on a confi-dential basis only to clients of Corporate & Investment Banking Division of UniCredit Group (acting through UniCredit Bank AG, London Branch (“UCB London”) and/or UniCredit CAIB Securities UK Ltd. who (i) have professional experience in matters relating to investments being investment professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“FPO”); and/or (ii) are falling within Article 49(2) (a) – (d) (“high net worth companies, unincorporated associations etc.”) of the FPO (or, to the extent that this publication relates to an unregulated collective scheme, to professional investors as defined in Article 14(5) of the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001 and/or (iii) to whom it may be lawful to communicate it, other than private investors (all such persons being referred to as “Relevant Persons”). This publication is only directed at Relevant Persons and any investment or investment activity to which this publication relates is only available to Relevant Persons or will be engaged in only with Relevant Persons. Solicitations resulting from this publication will only be responded to if the person concerned is a Relevant Person. Other persons should not rely or act upon this publication or any of its contents.

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

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

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

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

Note to US Residents:

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

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

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

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

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

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

Corporate & Investment Banking Division of UniCredit Group

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

as of 29 March 2010


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ImpRINTStatement pursuant to the Austrian Media Act Publisher and Media Owner

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

Information requirements pursuant to the Austrian E-Commerce Act

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

Swift: BKAUATWW Austrian bank code: 12.000

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

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

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

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

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

VAT identification numberATU 51507409

GSS NEWSLETTER - Custody | UniCredit Group

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