gss newsletter · 2012-05-23 · gdp per capita (2009 in eur) 33,203 gdp real 2009 (change against...

GSSNEWSLETTERISSUE 107March 2010

Issue 107, March 2010

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CoNTENTDEaR CLIENTS 4aUSTRIa 6Profits of domestic listed companies to hit double-digit growth 6Top-performers 2010 in the prime market 6

BoSNIa aND HERzEGovINa 7Sarajevo Stock Exchange in 2009: Total turnover worth over BAM 219 mn and new index SASX-30 7Federation of BiH government plan adopted for 2010 8

BULGaRIa 9Thanks to an agreement between the Polish Depositary and UniCredit Bulbank: Bulgarian companies to be listed on Warsaw Stock Exchange 9EU Officials Check Bulgaria’s Readiness for ERM II 9Bulgarian Payment System BISERA has started processing domestic cash transfers in EUR 10

CRoaTIa 11Croatian Parliament endorses establishment of guarantee fund 11EU Parliament approves Croatia 2009 Progress Report 1267 Croatian brands given Superbrand title 12EBRD to become co-owner in Geofoto Group 12

CzECH REpUBLIC 13Document Requirements for Registering Shares of Kit Digital 13PSE looks forward to the future 14

HUNGaRy 15IMF-EU delegation gives Hungary good marks but says further measures necessary 15PSZAF moved to Parliament budget chapter, strengthening independence 16

KazaKHSTaN 17Development Bank of Kazakhstan (DBK) considers an opportunity of Islamic securities – Sukuk issue in 2010 17

KyRGyzSTaN 18poLaND 19EEA-based brokers and their clients to benefit from amendments to the stamp duty law 19Poland’s Market Initiates Works on Joining T2S 20

RoMaNIa 21Economy 21Fitch improved country rating outlook to “stable” 21CNVM imposed Property Fund to register with CNVM 22

RUSSIa 23MICEX Launches Trading With the Central Counterparty (CCP) 23DCC Plans to Launch New Services 23


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SERBIa 24EU-Serbia Interim Deal comes into force 24EBRD revision of Serbia’s 2010 GDP forecast 24

SLovaK REpUBLIC 25Implementation of EU Directive on Shareholder rights 25Bratislava Stock Exchange Trading in January 26Revision of SAX Index Base 27

SLovENIa 28Government Busy Polishing Crisis Exit Strategy 28D&B Fears Another Economic Downturn in 2010 29Fitch Preserves AA credit Rating for Slovenia 29Slovenia Up Seven Spots on Economic Freedom Index 29

UKRaINE 30EU to support deepening of cooperation with Ukraine 30

yoUR CoNTaCTS 31DISCLaIMER 34IMpRINT 35


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DEaR CLIENTS

Michal Stuchlik (Head of GSS Czech Republic) and his group of RM's

The Czech Republic is going to have its unified CSD in 2010. We, the market representatives, leaded by Helena Cacka, Director of UNIVYC, after years of negotiations with the State, have made an agreement to buy the securities register historical data, which has allowed to kick-off the CSD implementation project phase.

It may be seen as “five minutes after twelve a clock”, since we all are already in the middle of synergies, efficiencies and cost cuttings driven by the recession, requiring a different approach in our businesses from what we experienced in last ten to fifteen years. And yes, it is a pre-condition for market participants to keep growing to have an efficient and com-petitive market infrastructure, which the CSD is a key part of. And yes, if it was finished two years ago, we would be in an easier situation today. However, finally, we can say, it is here.

If we want to unify the market, we have to be united in the market, and now more than ever before, including issuers and potential issuers, the stock-exchange, the CSD, broker-dealers and sub-custody banks. I am also happy to see the biggest sub-custodians sitting around the table and putting together unified comments on the CSD Operating Rules draft, in turn working to simplify account structures and account opening documentation, talking to paying agents and issuers to minimize tax reclaims on income collections and explain-ing, with incredible patience, to tax authorities, that Canadian mutual funds and Norwegian pension funds may have differ-ent incorporation documents from Czech funds.The idea “if the market is complicated, it must be simplified, which will bring lower costs”, is clear and should be always followed. And I believe that our market is a good example to prove it now.

If we listen to the sound of the word “synergy”, it can give us various impressions depending on our mind and creativity, from very negative feelings to a positive mood. This can also be interpreted to mean choice: a choice of what the word “synergy” will mean for us.

UniCredit Global Securities Services (GSS) has recently become a part of a new global division. There was a clear question: why are we putting our successful securities busi-ness under one roof with cash related services?

As much as we try to listen to sounds to get impressions, we listen to clients to get inspiration: inspiration of trends and inspiration of changing needs. And while listening, we also understand: this understanding has led to the “unification” of securities and cash services for our clients, aligning their requirements and structures to ours by getting the securities and cash businesses closer. This was a very important step for UniCredit GSS to continue its success of the past, not for the short term, but for the long.

And there is much more potential for growth in the CEE region, including the Czech Republic. Issuers will increasingly seek listings on the stock exchange and, in a recent exam-ple of this, KBC is planning on selling a stake of the biggest bank in Prague on the PSE; this is expected to be one of the biggest IPOs in the entire CEE region. It is clear to local investors that the more money they appropriate to the PSE, the more they invest in their own pensions and insurance, and this will bring higher turnover on the stock exchange.

CSD services are soon to improve, and I want to say “thank you for your patience and efforts” to Helena Cacka, Director of former UNIVYC and Director of the current CSD (CDCP). I am happy to see that she is positive about the future of our capital market: “The signing of the agreement with the Ministry of Finance is an important milestone within the entire project. I am convinced that once the project has been fully implemented, we will have a more transparent market. We look forward to being able to find space for gradual cost reductions in the process of registration and settlement, as well as to increasing the effectiveness of the entire process, which will open up new possibilities for us to extend our product offer in this area,“ says Helena Cacka, Director of CSD in Prague.”And the fact that she leads the new CSD, the key market infrastructure entity in the Czech Republic, helps me in efforts to improve my skills and to listen to client “sounds”.

It is clear that this recession has brought, among others, also positive hints for those who are ready to change their minds and values, and I am happy to see that such people prevail in the Czech Republic to support your successful business in the market.

Michal StuchlikHead of GSS Czech Republic


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We are very pleased to announce the promotion of Lejla Sabljica to Head of GSS in Bosnia and the appointment of Evgenia Klimova as our new Head of Product and Business Development in GSS Russia.

Please join us in welcoming them to their new positions and wishing them all the best in their future roles.

Best Regards,

Attila Szalay-BerzeviczyManaging Director Global Head of Global Securities Services

Attila Szalay-Berzeviczy Global Head of Global Securities Services

Lejla Sabljica Evgenia Klimova

DEaR CLIENTS

Mrs. Lejla Sabljica has been promoted to Head of GSS in Bosnia. Lejla worked for Revsar d.o.o. Sarajevo, Audit Service and Business Consulting, as an Audit Assistant from October 2005 to April 2007. In Revsar she gained experi-ence in auditing the financial services industry. In April 2007, she joined HVB Central Profit Bank d.d. Sarajevo, one of the predecessors of UniCredit Bank, and started working in the Controlling Department as an Associate for Head Office Reporting. In April 2008, she joined the GSS Team Bosnia as a Senior Relationship Manager.In 2005, she graduated from the University of Sarajevo – School of Economics and Business and holds a Bachelor's degree in Banking and Insurance. In 2008 she passed the professional exam for broker/dealer's license for the market of Federation BiH, followed by the professional exam for the investment advisor's license in 2009.

Mrs. Evgenia Klimova has been appointed as Head of Product and Business Development in GSS Russia. Evgenia will be responsible for development of new products and services based on client requests and market requirements, optimization of internal procedures to improve the effective-ness of GSS performance as well as developing and sup-porting marketing and service activities and documentation. Evgenia joined GSS following 9 years of experience with Citi Moscow where she worked in management in the corpo-rate and retail division of the bank. She spent 4 years in the Custody Department dealing with budget planning, settle-ment, corporate actions and in the client service area; her last appointment was as Head of the Client Service team. Evgenia graduated from Moscow State University of Inter-national Relations with a Diploma in International Finance.


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Market Capitalisation EUR 76.6bn

YTD Dev. of Market Capitalisation 1.0%

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

YTD Dev. of SE Transactions n.a.

SE Turnover (Vienna SE) EUR 4.4bn

Monthly Index Performance (ATX/VSE) 5.8%

GDP per Capita (2009 in EUR) 33,203

GDP Real 2009 (Change against prev. year in %) 1.3

3-Month Money Market Rate (current in %) 0.65

Inflation in 2009 (yearly average in %) 1.2

Upcoming Holidays none

Source: Thomson Datastream

Source: Bank Austria, National Statistics

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Profits of domestic listed companies to hit double-digit growthThe investment experts at UniCredit are quite bullish about the Austrian stock market. They estimate the leading index in Vienna, ATX, to climb to 2,800 points in the first half of the year and expect a gain of around 10% by year-end 2010.

Even though companies are still waiting for the first-quarter reporting season before making any earnings forecasts, UniCredit expects corporate profits to recover substantially. An increase by almost 30% for 2010 and 2011, respectively, is probable.

Source: Wiener Borse

Impact on investorsFor information purposes only.

Top-performers 2010 in the prime market

31 Dec 2009–

12 Feb 2010

31 Dec 2004–

12 Feb 2010

1.DO&CO RESTAURANTS& CATERING AG

+ 53.90% + 87.11%

2. RHI AG + 23.58% – 10.00%

3. ZUMTOBEL AG* + 15.84% – 22.59%

4.AGRANA BETEILI-GUNGS-AG

+ 13.46% + 1.53%

5. WOLFORD AG + 12.70% – 34.54%

6.AT&S Austria Tech.&Systemtech.**

+ 11.99% – 45,47%

* first day of trading 12 May 2006 ** first day of trading 2 May 2008

Source: Wiener Borse


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

mailto:[email protected]


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Source: Bloomberg

Market Capitalisation (Sarajevo SE) BAM 7.5bn


Number of SE Transactions p.m. 1,852

YTD Dev. of SE Transactions -20.9%

SE Turnover (SASE) BAM 8.5mn

Monthly Index Performance (SAX-10/SASE) 1.4%

Market Capitalisation (Banja Luka SE) BAM 3.7bn

YTD Dev. of Market Capitalisation -1.6%

Number of SE Transactions p.m. 830


SE Turnover (BLSE) BAM 2.2mn

Monthly Index Performance (BIRS/BLSE) -3.0%


GDP Real 2009 (Change against prev. year in %) -1.0

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


BAM/EUR 1.96


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Sarajevo Stock Exchange in 2009: Total turnover worth over BAM 219 mn and new index SASX-30In 2009 the Sarajevo Stock Exchange recorded a total turn-over in the amount of BAM 219,085,458.65, which repre-sents 62.32% of the total turnover recorded on both stock exchanges in BiH. In total 25,707 transactions were executed and 19,632,223 securities were traded.

Using the SASE infrastructure, three public offerings were conducted in 2009. During these public offerings 139,105 securities were subscribed in the total amount of BAM 4,383,787.35.

The “Official market of companies” recorded a total turnover in the amount of BAM 10,181,468.02 or 5.94% of the total ordinary turnover. In this market segment 704,495 securities were traded. The largest turnover by issuer was recorded for shares of “Bosnalijek” d.d. Sarajevo in the amount of BAM 9,416,305.53, followed by “Sarajevo osiguranje” d.d. Sarajevo in the amount of BAM 741.727.54 and “Klas” d.d. Sarajevo in the amount of BAM 23,434.95.

The “Official market of funds” achieved a total turnover in the amount of BAM 35,414,774.81 or 20.65% of the total ordi-nary turnover. The largest turnover recorded in this segment was for shares of ZIF “BIG Investiciona grupa” d.d. Sarajevo in the amount of BAM 17,871,687.86, followed by ZIF “Herbos fond” d.d. Mostar in the amount of BAM 4,739,958.51 and ZIF “Prof Plus” d.d. Sarajevo in the amount of BAM 3,119,047.78. In total 7,750,469 shares were traded in this market segment.

In the “Bonds” segment the total turnover in 2009 amounted to BAM 195,385.51 or 0.11% of the total ordinary turnover. In this market segment 882,258 bonds were traded within 354 transactions.

The “Primary free market” recorded a total turnover in the amount of BAM 63,856,241.94 or 37.24% of the total ordinary turnover. The most traded shares in 2009 were JP “Elektro privreda BiH” d.d. Sarajevo, “BH Telecom” d.d. Sarajevo, “Fabrika duhana Sarajevo” d.d. , “IK Banka” d.d. Zenica and “Energoinvest” d.d. Sarajevo.

The “Secondary free market” recorded a total turnover in the amount of BAM 61,688,734.25 or 35.97% of the total ordinary turnover. The segment for “Issuers in bankruptcy proceedings” recorded a total turnover in the amount of BAM 156,141.58. In 2009 there were 176 transactions reported as “negotiated deals” and 3 share packages worth BAM 17,443,770.44.


8 Bosnia and Herzegovina

The investment fund index “BIFX” recorded a decline of 13.95% in 2009. The main index of the Sarajevo Stock Exchange “SASX-10” dropped 14.64% compared to the previous year. As of 1 April 2009 SASE started calculating and announcing the “SASX-30”, index of the “Primary free market” which rose by 9.72% in 2009.

Source: The Sarajevo Stock Exchange Annual report 2009


Federation of BiH government plan adopted for 2010The 2010 Government Programme was adopted on 21 Janu-ary 2010 by the Government of Federation. Strategically, it will be focused on furthering economic growth against a backdrop of the global economic crisis and stopping nega-tive trends, with particular emphasis on the privatization and restructuring of companies, increasing investments, export and competitiveness, reducing the grey economy, raising the living standard and reducing poverty.

Furthermore, the Government will work to strengthen the internal social stability of FBiH, and initiate and implement reforms within the EU harmonization process. Individual pres-entations within this Programme were given on the topics of environment, privatization, employment, salaries, monetary and funding policy, prices and inflation, external trade, foreign investments, foreign debt and GDP. Other government insti-tutions, agencies and enterprises were instructed to submit their operative programmes within 30 days.


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


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Market Capitalisation BGN 11.3bn




SE Turnover (Bulgarian Stock Exchange) BGN 22.4mn

Monthly Index Performance (SOFIX) -1.6%





EUR/BGN 1.96

Upcoming Holidays 3 March

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Thanks to an agreement between the Polish Depositary and UniCredit Bulbank: Bulgarian companies to be listed on Warsaw Stock ExchangeBulgarian public companies can now raise capital to fund their projects from investors on the Warsaw Stock Exchange. The new opportunity for local companies – to attract Polish investors’ interest – is a result of a cooperation agreement in the field of custodian services between the Polish Central Depository (Krajowy Depozyt Papierów Wartosciowych S.A.) and UniCredit Bulbank.

“Many Bulgarian companies have expressed interest in the Warsaw Stock Exchange. Opening of the link with Bulgaria is the first step enabling their listing on the WSE. New foreign listings will allow WSE investors to diversify their investment portfolios. KDPW supports corporate actions of foreign issu-ers, for instance dividend payments,” said CEO Iwona Sroka.

“The secondary effect from the listing on a foreign market of a public company stocks is usually expressed in increased liquidity of the shares on the local stock exchange.”, UCB’s Head of Global Transactions Division Mladen Zapryanov said. He underscored that the agreement was signed as a result of concerted efforts of the two organizations’ teams that have led to the successful outcome.

Signing of the agreement is a crucial step forward for the Bulgarian capital market.

Impact on investorsBulgarian public companies will be able to be listed on Warsaw Stock Exchange.

EU Officials Check Bulgaria’s Readiness for ERM IIOfficials from the European Commission, the European Central Bank and the International Monetary Fund arrive in Bulgaria on 18 February to examine the country’s readiness to join ERM II, a currency stability test for euro hopefuls. Cur-rently Bulgarian Lev is fixed to the Euro at a rate of 1.95583.

The experts will visit Sofia at the invitation of Bulgaria‘s Min-ister of Finance Simeon Djankov who has discussed the issue during his formal trip to Germany and Luxembourg at the beginning of February. Countries must be members of ERM II for two years before they can formally join the euro-zone. Bulgarian government expects that Bulgaria could be ready for euro entry by 2013.


10 Bulgaria

Bulgaria, which joined the EU in 2007, posted the small-est budget deficit among the 27 member states last year, according to the finance ministry. It is expected to be one of the few EU nations to balance its budget in 2010.

Impact on investorsEntering the Euro Zone will ensure further the economic stability of the country.

Bulgarian Payment System BISERA has started processing domestic cash transfers in EURThe Bulgarian Payment System BISERA has started process-ing cash transfers between accounts opened with local financial institutions. The new system BISERA 7 will enable processing of same day cash transfers below EUR 50,000 within territory of country. According to Bankservice AD, the operator of BISERA system, the cash transfers will be processed similarly to the current cash transfers in BGN. The new system is based on the rules, practices and standards of the European payment zone system SEPA.

The primary goal is to modernize the Bulgarian banking system and to integrate it more closely to the European one. It is expected on the future stage of the development BISERA 7, the system to process cash transfers to the EU countries through Target 2 system.

Impact on investorsThe processing of domestic cash transfers in EUR will integrate further the Bulgarian banking sector to the EU banking sector.

Written and edited by: Alexander Vuchkov Head of GSS, UniCredit Bulbank ADTel. + 359 2 93 20 111 · [email protected]



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CRoaTIa

Market Capitalisation HRK 180.6bn




SE Turnover (Zagreb SE) HRK 890.5mn

Monthly Index Performance (Crobex/ZSE) 9.9%





EUR/HRK 7.32




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Croatian Parliament endorses establishment of guarantee fundThe Croatian Parliament adopted a bill on a guarantee fund for economic recovery and development whereby the govern-ment wants to participate in corporate lending by issuing guarantees via the Croatian Bank for Reconstruction and Development (HBOR).

The state-run fund will provide HRK 2 bn for loans to be granted to business to help them stay afloat. The loans from the fund will be granted for a period of 3 to 10 years, or to less than 3 years for the financing of current assets. The guarantee fund is worth HRK 2 bn, while the guarantee will be provided by the HBOR at auctions that will be held once or twice a month. The basic criteria for the allocation of guar-antee quotas will be the level of risk the bank is prepared to assume, while the state guarantee for an individual loan could be a maximum 50% of the principal amount. The loans the government will partly guarantee for are intended for new investments as well as those under way, for financing current assets and for rolling over loans signed after 1 July 2008. Entrepreneurs interested in a loan will no longer have to talk to the government of the HBOR but directly to their commercial bank.

According to government projections, more loans under these more favourable conditions would help production growth, employment and the competitiveness of Croatian enterprises. With this bill the government wants to help in overcoming difficulties in the economy by taking on part of the risk for new commercial bank loans. The idea is to activate production which should then create new added value, said Zdravko Maric, a state secretary at the finance ministry. He continued by saying that by moving this measure, the gov-ernment wants to encourage commercial bank investment in the economy, and a sort of competition between commercial banks so that corporate loans can be issued under the most favourable terms.

Impact on investorsThe guarantee fund is designed to help in overcoming difficulties in the economy by increasing lending which would encourage investment and economic activity.


12 Croatia

EU Parliament approves Croatia 2009 Progress ReportThe European Parliament approved the 2009 Progress Report for Croatia which means the EU accession talks could be finalized by year-end, pending on fulfilment of imposed criteria. With the majority of votes, 582 for and 24 against with neutral, the report was approved after the same was done by the EP Committee on Foreign Affairs at end-January. Croatia’s PM Jadranka Kosor added that at least two chap-ters, currently vetoed by Slovenia, will be open at the next intergovernmental session.


67 Croatian brands given Superbrand titleSixty seven brands in Croatia have earned the “Superbrand” title for the year 2009 and were presented with awards for leading brands at a ceremony organised by the company Superbrands Adriatic in Zagreb. Among these 67 labels are 24sate, Abc Interijer, Agrokor, Antena Zagreb, Badel 1862, Bambi, Bankg&Olufsen, Becutan, Croatia Records, Diners Club International, Dukat, Mavrovic Osobno Iskustvo, Zagre-backo Gradsko Kazaliste Komedija, Konzum, Ledo, Privredni Vjesnik, Radio 101 and Segway. Musicians Josipa Lisac and Zlatan Stipisic Gibonni were awarded Superbrand titles as well.

The international organisation Superbrands, which includes Superbrands Adratic, has been present in more than 80 coun-tries. Its mission is to identify leading brands in individual markets and to promote branding. Renowned international labels such as Coca.Cola, DHL, Gillette, IBM, McDonald’s, Microsoft, Wrigley’s and others have used the Superbrand status and sign in their promotional campaigns.


Written and edited by: Snjezana Bruncic Relationship ManagerTel. +385 1 6305 400 · [email protected]

EBRD to become co-owner in Geofoto GroupGeofoto Group signed a contract with the European Bank for Reconstruction and Development (EBRD), according to which the EBRD becomes a co-owner in the geodesy and geoin-formation company. With an investment worth EUR 4 mn, EBRD became owner of a minority share in Geofoto Group, which will use the money for implementing the investment plan in 2010 and 2011. Company’s CEO Zvonko Biljecki says the funds will enable them to change Geofoto’s business model and enhance the company’s production processes. He believes the partnership with the larges financial investor in Croatia will fortify Geofoto’s position in the regional market and speed up the breakthrough to the EU market.



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Market Capitalisation CZK 1.4trn




SE Turnover (Prague SE) CZK 80.8bn

Monthly Index Performance (PX) 5.3%





EUR/CZK 26.00



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Document Requirements for Registering Shares of Kit DigitalThe CDCP (Central Securities Depository Prague) has speci-fied the conditions and document requirements necessary to provide in case of the first purchase of the share issue KITD (US4824702009).

The outcome of CBL (Clearstream) and CDCP discussions is as follows:CBL shall keep register of share issues of KITD in an omnibus account solely for non-US beneficial owners and US exempt persons, whilst US non-exempt persons shall not be entitled to trade with shares of KITD on PSE.

According to the rules and regulations of the US Securities and Exchange Commission (SEC) and International Revenue Service (IRS), all beneficial owners of US shares held in a CBL omnibus account must submit the appropriate forms, i.e. W-8BEN shall be submitted by non-US beneficial owners, and W-9 by US exempt persons. All forms and instructions how to fill in these forms are available on the web pages of

IRS: http://www.irs.gov/W-8BEN: http://www.irs.gov/pub/irs-pdf/fw8ben.pdfInstructions: http://www.irs.gov/instructions/iw8ben/index.htmlW-9: http://www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=3

As a result of the CDCP (who will ensure the distribution of the forms to CBL) requirement, UCB CZ would like to ask for duly filled in and signed originals of the above forms for each beneficial owner who purchased the share issue of KITD. (The liability also applies to the beneficial owners who purchased the given shares prior to the information disclosure, i.e. with VD 21/01/2010.)The liability to submit the above mentioned forms relates to the first closed purchase of the KITD shares.

The initial public offering of KITD-REG S (ISIN USU4947Q1077) mentioned in one of the previous Newsflashes no. 2 (please see below) has not been processed by PSE.

Source: CDCP

Impact on investorsLiability to submit documents.

http://www.irs.gov/

http://www.irs.gov/pub/irs-pdf/fw8ben.pdf

http://www.irs.gov/instructions/iw8ben/index.html

http://www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=3


14 Czech Republic

PSE looks forward to the futureThe Prague Stock Exchange (PSE) was hit by the collapse of global financial markets in 2009. On the other hand, this year, the PSE promises a better future not only via the larg-est initial public offering (IPO) in its history, but also through modernization projects aimed to bring trading in Prague to the 21st century.

The PSE received its first issuer for this year on 25 Janu-ary, the Internet technology company Kit Digital. Traded in the blue-chip system SPAD since 27 January, the company looks to be the forerunner of similar start-ups in the future. However, the double listing is small compared with expecta-tions for the spring IPO of some 30 to 40% of shares of the local bank Ceskoslovenská obchodní banka (CSOB), which is expected to weigh some 15% in Prague’s main PX Index.

However, besides the growth of the overall volume of the banking business stocks, the exchange needs to modern-ize—and is positive that the structure has been taken over by the Vienna Stock Exchange (WBAG), according to Petr Koblic, the CEO of PSE. Now, numerous opportunities for local cooperation are open in various product trading. In rela-tion to the WBAG cooperation, PSE understands the need of consolidation of some services and would like to offer some common services for the whole group.

Moreover, PSE aims to change its clearing and settlement system this year and move to another trading system, Xetra, in the near future. All these steps are aimed to take Prague to a level of development corresponding to today’s electronic market challenges, Koblic said.

According to Petr Koblic, the expectations from the CSOB IPO are very high since the issuer is very well informed about the Czech market. It is also a traditional business and com-pany that can be easily researched against its peer com-panies on the Czech market, i.e. Erste Bank and Komercní banka (KB). Mr. Koblic also notes that there could be some analyses comparing them and it is highly improbable that the CSOB IPO would be badly priced.

As far as the modernization projects of PSE are concerned, the most important ones ahead are the IT ones, i.e. the cen-tral depository CDCP, and the change of the system of the exchange to Xetra; procedures that will be quite time con-suming and difficult.

Clearing and settlement in the Czech Republic has not changed since the middle of the ‘90s, whilst in the world, it has changed dramatically adapting new products and sys-tems. Hence there are many ongoing activities in order to implement really standard clearing and settlement services. There is a clear time schedule for the central depository. The long weekend at the beginning of July 2010 shall be used as a technological window for transferring the security centre (SCP) into the central depository. The remaining steps will be derived from this date.

The schedule for the change of the trading system to Xetra is yet to be determined. PSE looks forward to be able to offer a very good service as a result of the Xetra implementation. Petr Koblic notes that with the rise of the electronic trading and international cross-border business, books like Xetra are becoming more predominant. We will, together with other exchanges in our group, change to this common platform. In the long run, it should also bring savings not only to us, but also to our members who want to trade on more exchanges in the region. In the foreseeable future, the same system will be used by Austria, Hungary and Slovenia. For any of our members, it will be possible to execute synergies in the system, adds the CEO of PSE.

Source: cbw.cz


Written and edited by: Dita Šafárová Relationship ManagerTel. + 420 221 216 772 · [email protected]



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Market Capitalisation HUF 17,722.5bn



YTD Dev. of SE Transactions 35.5%

SE Turnover (Budapest SE) HUF 752,946mn

Monthly Index Performance (BUX) 1.3%





EUR/HUF 271,80



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IMF-EU delegation gives Hungary good marks but says further measures necessary According to IMF’s review of Hungary’s progress meeting the conditions of the EUR 20 bn financial support package, Hun-gary’s government has taken sufficient measures to stabilize the economy, but a strict fiscal policy as well as maintaining risk reserves are still necessary. Further measures must be taken in 2011 to bring the general government deficit below 3% of GDP. As it is known, the financial package was granted by the IMF, EU and World Bank in November 2008 after the country’s bond market locked up.

According to the IMF report, further measures are required to reduce Hungary‘s state debt from over 80% of GDP to 65% in the next five years.

Hungary‘s main opposition party Fidesz has expressed its readiness and intention to continue a strict fiscal policy in talks with the IMF. Politicians from the Opposition have confirmed the cooperation with the IMF is important and they wish to continue this cooperation, especially because Fidesz is tipped to win the general elections in spring based on polls.

Hungary is progressing in the right direction toward a pickup, supported not by domestic consumption but based on exter-nal demand. The IMF projects Hungary‘s economy will con-tract by 0.2% in 2010, but expects growth of more than 3% in 2011.

The Hungarian economy has stabilized and is moving along the right path but due to major budget risks, this year‘s deficit target can only be achieved with a strict budget policy and it might also be necessary to restructure reserves.

Hungarian Finance Minister Mr. Peter Oszko reiterated that the government does not want to draw down another tranche of the financial support package as the country can get financing on the market. Mr. Oszko said that last year‘s 3.9%, and this year‘s 3.8% of GDP general government deficit targets seem achievable, but he acknowledged that further disciplined fiscal policy is required.

Even though the 75% of the full-year deficit for 2010 will be reached as early as the first quarter, the government will freeze the HUF 170 bn of risk reserves, ensuring the full-year target is met. Risk will be reduced by some HUF 60 bn in general government revenue from private pension fund members returning to the state pension system and by about HUF 50 bn because of lower interest rates.


16 Hungary

The government‘s projection for GDP this year was changed to minus 0.2%, a slight improvement over a projection of minus 0.3% made a month earlier. In January the government had projected a 0.6% drop in GDP for 2010.

Governor of the National Bank of Hungary, Mr. Andras Simor said the steps Hungary had promised the IMF it would take to strengthen financial market regulator PSZAF had all been completed. This fact was indeed acknowledged by the IMF‘s representative in Hungary, Iryna Ivaschenko.

Hungary‘s banking system is stable and remains profitable, and banks‘ parents in the West have confirmed their com-mitment to units in Hungary. The capital adequacy ratio of Hungary‘s bank system was almost 10% in 2009, preliminary data show, just slightly under the level in 2008.

Of the EUR 12.3 bn IMF stand-by loan, Hungary drew down EUR 4.9 bn in November 2008, upon the approval of the package. It drew down EUR 2.3 bn in March 2009, EUR 1.4 bn in June 2009 and a slight EUR 55 mn in Sep-tember 2009. The country has made no further draw-downs since the last review carried out in December 2009.

Of EUR 6.5 bn from the EU, Hungary drew down EUR 2 bn in December 2008, another EUR 2 bn in March 2009 and EUR 1.5 bn in July 2009.

Hungary may still call down EUR 5.7 bn of the IMF, EU and World Bank package until 5 October 2010.

The above quarterly review was the fifth by the IMF and the fourth by the European Union.

Impact on investorsAccording to the latest IMF’s review of Hungary’s progress meeting the conditions of the EUR 20 bn financial support package, Hungary’s government has taken sufficient measures to stabilize the economy, but a strict fiscal policy as well as maintaining risk reserves are still necessary. Further measures must be taken in 2011 to bring the general government deficit below 3% of GDP.

PSZAF moved to Parliament budget chapter, strengthening independenceHungarian financial market regulator PSZAF has been moved from the Finance Ministry’s budget chapter to Parliament’s budget chapter with retroactive effect from 1 January 2010 under a government decree published in the latest Official Gazette. According to PSZAF’s announcement, this change significantly expands the watchdog’s independence.

Amendments to the law governing PSZAF approved in December provided the basis for the move. Under the changes, PSZAF was taken out of the Finance Ministry and was made an autonomous state institution with its own title in the Parliament‘s budget chapter.

PSZAF has a revenue target of HUF 10.1 bn in 2010. On the expenditure side, its budget targets payroll costs of HUF 5 bn, HUF 1.4 bn for employee contributions, HUF 2.7 bn in mate-rial costs and HUF 540 mn for investments.

Impact on investorsHungarian financial market regulator PSZAF has been moved from the Finance Ministry’s budget chapter to Parliament’s budget chapter with retroactive effect from 1 January 2010. The change significantly expands the watchdog’s independence.

Written and edited by Lívia Mészáros Sales & Relationship ManagerTel. +36 1 301 1921 · [email protected]


17

Market Capitalisation KZT 13,045.1bn

YTD Dev. of Market Capitalisation n.a.



SE Turnover (KASE) KZT 9.7bn

Monthly Index Performance (KASE) 1,864.7





EUR/KZT 201,53


Source: Bloomberg

KazaKHSTaN


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Development Bank of Kazakhstan (DBK) considers an opportunity of Islamic securities – Sukuk issue in 2010“In 2010 Development Bank considers the opportunity of Islamic securities, particularly sukuk, issue for new investment projects. This project is actively studied as well as legally and economically” – managing director of DBK Eldar Tenizbayev informed at the forum of Islamic financing on Monday, in Astana. He considers that the potential issue of sukuk by Development Bank will be met positively by the market, because DBK is a quasi sovereign financial institute and has credit ratings at the level of sovereign ones, wide experience of major strategic projects’ realization, conducts conservative policy and can play the role of agent in terms of structuring deals for Islamic financing. Vice-minister of finance of Republic Berik Sholpankulov confirmed that in 2010 the Ministry of Finance of Kaza-khstan also plans to issue Islamic sovereign papers. In his opinion, the issue of papers will be possible after cor-responding changes in the legislation of the Republic and adjustment to its principles of the Sharia. At the present time this draft law is discussed in state bodies of the Republic. He has not specified the volume of the issue of Islamic sover-eign papers by the Ministry of Finances, noting that the question is about the amount, which is sufficient for benchmark setting. In his turn, speaking at the forum, vice-minister of industry and trade of Kazakhstan, Erkhat Iskaliev, noted that “after potential floating of the inaugural issue of sovereign Islamic papers of the Development Bank by the Ministry of Finance will act the part of accelerator of the process of Islamic financing”. Meanwhile, he considers that potential issuers of Islamic papers in Kazakhstan – national companies – don not have sufficient information about opportunities of Islamic financing. Thereupon he offers the Islamic Bank of Development to be a consultant for Kazakhstan national companies in this question. As the representative of RFCA informed the assets of Islamic banks during the financial crisis period show the growth 15-20% in one year, and the sukuk market was valued at half a billion USD. Thus, according to estimations of rating agency Standard&Poors’s, the given market can be developed until 400 bn USD.

Sukuk -an Islamic financial certificate, similar to a bond in West-ern finance, that complies with the Sharia, the Islamic religious law. As the traditional Western interest paying bond structure is not permissible, the issuer of a sukuk sells an investor group the certificate, who then rents it back to the issuer for a pre-determined rental fee. The issuer also makes a contractual promise to buy back the bonds at a future date at par value.

Impact on investorsSukuk – is potential new investment tool.

Written and edited by Saida Abdraimova Relationship ManagerTel. +7 727 258 30 15 · [email protected]


18

KyRGyzSTaN

Market Capitalisation KGS 8,846.7mn

YTD Dev. of Market Capitalisation n.a.

Number of SE Transactions p.m. 143


SE Turnover (KSE) KGS 123.1mn

Monthly Index Performance (KSE) 90.9

GDP per Capita (2009 in EUR) 1,457.19



Inflation in 2009 (yearly average in %) n.a.

EUR/KGS 61.66



In January 2010 KSE’s trade volume decrease made up KGS 0.12 bn (USD 2.79 mn) with 143 trades provided.

The trade volume on JSC “Kyrgyz Stock Exchange” in January 2010 amounted to KGS 21.52 mn (USD 0.49 mn) with 39 trades provided.

The trade volume on JSC “Kyrgyzstan Stock Exchange – BTC” in January 2010 made up KGS 280,861 (USD 6367) with 90 trades provided.

The trade volume on JSC “Central Asian Stock Exchange” for January 2010 amounted to KGS 101.33 mn (USD 2.3 mn) with 14 trades provided.

Impact on investorsChanges of the business activity in the Kyrgyzstan market as of the beginning of the year 2010.

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


19

Market Capitalisation PLN 428.3bn




SE Turnover (WSE) PLN 17.6bn

Monthly Index Performance (WIG20) -0.25%

Monthly Index Performance (WIG) 0.18%





EUR/PLN 4.02



poLaND


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EEA-based brokers and their clients to benefit from amendments to the stamp duty lawSince September 2009 the Polish Parliament has been work-ing on amendments to the stamp duty law. After approval of the new regulations by both houses of the Parliament, the legislation process is now coming to an end, waiting just for the President’s signature under the bill, which should happen in March. The amended stamp duty provisions should be in force by the end of April.

The new law brings about two significant changes compared to the existing regulations.

The first one is the extension of all the existing exemptions currently available to local brokers and to foreign brokers domiciled in European Economic Area (EEA) member coun-tries. This change should dispel doubts that have appeared on the market for some time now concerning the status of EEA-based brokers executing trades on Polish securities. Once the amended regulations enter into force, EEA-based brokers and their clients trading on the Polish securities will get clarity and safety as far as stamp duty is concerned. There have never been doubts concerning transactions executed on an organized market, but the tax status of OTC trades executed by foreign brokers has not been clear. Under the existing regulations a pure OTC transaction is exempt from stamp duty if it is executed via an investment firm or it is a sale of securities to an investment firm. Foreign brokers wish-ing to buy shares from their clients or intermediate between two clients had to analyze if they could be considered as an investment firm within the meaning of the Poland’s regula-tions. Under the new stamp duty law, such analysis will not be necessary as each entity carrying brokerage activities on the basis of a license granted by a competent authority of a country being a member of the EEA will be entitled to claim stamp duty exemption in Poland. It should be noted that brokers from non-EEA countries will not benefit from the new provisions.

The other significant amendment to the law is the clear state-ment that transactions concluded by the local or EEA-based foreign brokers from their own portfolios are exempt from stamp duty if the shares were previously bought on an organ-ized market. As a result, foreign brokers will be allowed to buy the shares on the exchange for their own portfolios and then sell them free of tax to any client.

The amended list of exemptions will cover the following trans-actions: (a) sale of Treasury bills and bonds as well as sale of the National Bank of Poland’s bills; (b) sale of other financial instruments to investment firms or foreign investment firms, or with intermediation of investment firms or foreign investment


20 Poland

firms, or concluded on an organized market, or concluded outside the organized market by investment firms or for-eign investment firms, provided that the financial instruments being subject of the transaction were originally purchased by these firms on the organized market.

Impact on investorsAmendments to stamp duty law will mainly have impact on the EEA-based brokers who will get the opportunity to trade OTC with their clients free of stamp duty. The exemption may not be applicable to internal trading on a principle basis (this trading model should be consulted with the tax advisors).

Poland’s Market Initiates Works on Joining T2SThis month the National Depository for Securities has signed a unilateral undertaking to start preparations to join Target-2Securities platform in the future. In the project, NDS will act as a leader of the National Users Group working on the implementation of T2S on the Polish market. The National Users Group’s first task is to identify all barriers and threats to the implementation of the T2S in Poland. As a leader of the project, NDS will carry out discussions and consultations with the market participants as well as other institutions in Poland. NDS is planning to join the T2S platform after Poland’s acces-sion to the euro zone, which is not likely to happen until 2014.

Impact on investorsIn short-term this imitative will not have direct impact on investors in Poland. Poland’s market will not join T2S system until euro replaces Polish zloty. In long-term the clients will get the opportunity to access the market and settle trades in such market directly from another market via T2S system.

Written and edited by: Kamil Polak Head of Relationship ManagementTel. +48 225245863 · [email protected]


21

Market Capitalisation RON 86.5bn




SE Turnover (Bucharest SE) RON 754.3mn

Monthly Index Performance (BET/BSE) 8.0%





EUR/RON 4.12



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EconomyCentral bank cut the monetary policy rateOn 3 February, the NBR cut again the monetary policy rate by 50 bp to 7%. This was the second cut since the beginning of the year. This time, the NBR decision was in line with market expectations. In the statement following the monetary policy meeting, the NBR said that the disinflation process would con-tinue, despite a temporary rise in inflation in January under the impact of the exogenous shock resulting from excise duties on tobacco. The statement mentioned again “the persistent deficit of aggregate demand” and the strengthening of the leu due to foreign investors’ improved sentiment towards Romania thanks to the resumption of the agreements with the IMF and the EC. These were the main factors supporting the NBR’s decision. There was a change in wording of the NBR, saying it would ensure “adequate management of liquidity” in the banking system instead of “firm management of liquidity” used to describe liquidity management in January. This means that it will most likely allow more liquidity into the market, especially if sentiment towards the leu remains positive.

On 5 February, the NBR made known its new inflation fore-cast. The Central Bank revised upward its forecast for the inflation rate at the end of this year to 3.5% from 2.6% previ-ously. The new forecast matches the central point of 3.5% of the inflation target band of 2.5% - 4.5%. The new projection takes into account higher prices for electrical energy and natural gas, and higher increases in volatile prices. The NBR projects the inflation rate at 2.7% at the end of 2011.

Impact on investorsNBR monetary policy decision.

Fitch improved country rating outlook to “stable”On 2 February, Fitch rating service improved Romania’s rating outlook to “stable” from “negative”. Fitch reaffirmed Roma-nia’s long-term foreign currency rating at “BB+”.Revision of outlook was determined by the calm down of political turbulences and the formation of a “working coalition”, by the adoption of the 2010 budget plan in line with the commitments to the IMF and the EC (targeting a deficit of only 5.9% of GDP), by the expected normalization of relations with the IMF and the EC whose technical missions recommended disbursement of additional tranches from the financial support package agreed in 2009, and by “sharper than expected” narrowing of the cur-rent account deficit which has reduced external funding needs.Fitch considers that the approval of the budget plan for 2010 and the resumption of the funding programs with the IMF and the EC “has significantly reduced fiscal and external financing risks and the threat of further macroeconomic instability”.

Impact on investorsFitch improved country rating outlook to “stable”.


22 Romania

CNVM imposed Property Fund to register with CNVM After five years during which it operated outside the capi-tal market, Property Fund (FP) has a 45-day deadline, until 9 April, to register with CNVM. On 23 February, CNVM con-ditioning the coming into effect of the management contract with Franklin Templeton on FP’s registering with CNVM in the Other Collective Investment Institutions category.

Impact on investorsCNVM intends to speed up the fund’s floatation.

Written and edited by: Viviana Traistaru Senior Global Securities Services Account ManagerTel. +40 21 200 26 73 · [email protected]



23

Market Capitalisation RUB 16.8trn


Number of SE Transactions p.m. (MICEX) 6,830,840


SE Turnover (MICEX) RUB 2.9trn

Monthly Index Performance (RTS) 1.0%

GDP per Capita (2009 in EUR) 7.450




EUR/RUB 41.13



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MICEX Launches Trading With the Central Counterparty (CCP)Starting from 15 February 2010, MICEX is planning to launch trading with central counterparty (CCP). The new regime will feature trades with the most liquid securities, presume T+3 settlement cycle, central counterparty settlement mode and partial pre-funding of trades (15-30%). Trades will be concluded with the stocks included in MICEX-30 Index and bonds.

The main advantage of the new settlement mode will be an opportunity to use both securities and cash assets for the partial pre-funding.

MICEX system, acting as the central counterparty, will create a guarantee fund in the amount of RUB 8 bn. More than 200 participants will receive access to the new regime subject to their credit rating.

Currently, trades on MICEX are executed with 100% pre-funding mostly with T+0 settlement cycle.

Impact on investorsNew trading regime will further improve liquidity on MICEX by bringing the process to more up to date standards.

DCC Plans to Launch New Services In the nearest future, Depository Clearing Center (DCC) will launch a project for new services. DCC is planning to act as an intermediary between registrars and its participants by using electronic formats instead of paper-form documents.

Implementation of the new project will allow DCC partici-pants to use SWIFT formats in the course of interactions with the registrars of shareholders in relation to re-registration of shares and also use the DCC electronic remote access for disclosure of information for corporate actions’ execution.

UniCredit Bank, being an active participation in the develop-ment and improvement of the infrastructure of the Russian market, has committed to be a pilot participant for the project implementation.

Impact on investorsDCC continues development of electronic remote access registrars to minimize paper-form documentation-flow in the market.

Written and edited by: Alexander Nazarov Director, Global Securities ServicesTel. +7 495 258-7349 · [email protected]


24

Market Capitalisation RSD 874.7bn




SE Turnover (Belgrade SE) RSD 0.9bn

Monthly Index Performance (Belex 15) 2.2%





EUR/RSD 98.30


Source: Bloomberg

SERBIa


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EU-Serbia Interim Deal comes into forceThe interim trade agreement between the European Union (EU) and the Republic of Serbia officially came into force on 1 February 2010.

The first meeting of the interim deal monitoring committee is scheduled to take place between 10 and 15 March 2010, according to the Head of EU Delegation of Serbia, Mr. Vincent Degert. In his opinion conclusions of the monitoring commit-tee will have a significant influence on the European Commis-sion’s opinion on Serbia’s application for EU membership.

The interim trade agreement is a part of Stabilization and Association Agreement (SAA) between Serbia and the EU and incorporates various rules in different areas that Serbia should comply with in order to attract foreign investors. The SAA was signed in April 2008, but due to specific political climate not implemented until the end of 2009, when Serbia unilaterally started applying the interim trade deal on 29 January 2009, with the EU joining the deal enforcement on 1 February 2010.

Monitoring of the implementation of the interim trade deal is considered to be of high importance for future country’s EU integration, while the current financial benefit for the Serbian export companies in the last ten months, related to customs costs, amount to EUR 310 mn.

Impact on investorsThe implementation of the interim trade deal to encourage potential foreign investors and bring the country closer to admission to the EU, affirming EU integrations as Serbia’s clear long-term goal.

EBRD revision of Serbia’s 2010 GDP forecast In spite of October 2009 forecast of 1%, the European Bank for Reconstruction and Development (EBRD) has revised Serbia’s 2010 Gross Domestic Product (GDP) forecast, upgrading it to 2.4%, due to a somewhat better and faster crisis recovery of the entire Southeastern Europe region, then expected last October. The EBRD now expects the region to have an average GDP growth of 3.3% in 2010 and 3.8% in the following 2011, which represents a forecast increase com-pared to predicted 2.5% regional average growth for 2010.

Impact on investorsEBRD hikes Serbia’s 2010 GDP forecast from estimated 1% to 2.4%, proving the overall country’s economic climate positive change and progress.

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



25

Market Capitalisation EUR 23.2bn


Number of SE Transactions p.m. 318.0


SE Turnover (Bratislava SE) EUR 1.0bn

Monthly Index Performance (SAX/BSSE) -9.3%





EUR/SKK 30.13



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Implementation of EU Directive on Shareholder rights On 1 December 2009 the Amendment to the Commercial Code, adopting the Directive of the European Parliament and Council No. 2007/36/EC on shareholder rights, has become effective. The Amendment extended the rules of transparency, introduced changes to requisites for invitations to shareholders meetings of public joint-stock companies, permission for attending such shareholders meetings via electronic means, as well as other changes. Key changes were outlined in our August Newsletter; hereafter we provide the more detailed explanation of particular provisions.

Public Joint-Stock CompanyThe Amendment eliminates the barriers in the cross-border investment, especially those which are connected with the cross-border exercise of shareholder’s rights. Pursuant to this Amendment, the definition of a public joint-stock company is amended. A public joint-stock company is deemed to be a company, all or some securities of which are admitted to trading on regulated market situated or operating in some of the member states of the Agreement on the European Economic Area. The Amendment stipulates the prohibition of transferability of securities admitted to trading on the regu-lated market. Public joint–stock companies shall amend its Articles of Association in order to comply with the new regula-tion until 1 May 2010.

Convocation of the Shareholders MeetingThe requisites of the invitation to the Shareholders Meeting or notification on the Shareholders Meeting of a public joint-stock company are specified. The Amendment regulates a new method of their publication on the website of a joint-stock company at least 30 days before the date of the Share-holders Meeting together with other required documents and information. Along with the invitation, the information must at least include: the total number of shares and voting rights at the date of convocation, a draft resolution, the forms to be used to vote by proxy and to vote by correspondence; if the forms cannot be made available on the Internet, the company shall indicate how the forms can be obtained in paper. The convocation must include additional information, specifically: precise description of the voting procedures, procedures for casting votes by correspondence or by electronic means, the procedures for voting by proxy and the forms to be used to vote by proxy and means by which the company accepts electronic notifications of the appointment of proxy holders. The requisites of the minutes of the Shareholders Meeting are amended as well.


26 Slovak Republic

Shareholders RightsThe Amendment to the Commercial Code introduces a new provision according to which the exercise of rights of a shareholder shall not be subject to deposition of shares of a shareholder to the account of the other person, subject to transfer to another person or subject to registration to another person.The Act also regulates determination of a decisive day, deter-mination of a person entitled to exercise the right on dividend as well as the form and place of the dividend payout and a decisive day for exercise of rights belonging to shares in a public joint stock company. In case of public joint stock com-panies, the decisive day for execution of shareholders rights is the third day preceding the day of the Shareholders Meeting.The Act also stipulates provision of information and expla-nations at the Shareholders meeting. The new regulation expressly states that if more shareholders appointed the same proxy in written form to represent them at the Share-holders Meeting, the proxy may vote at the Shareholders Meeting for each such shareholder separately. Furthermore, if a shareholder keeps shares on more than one securities account, the shareholder may appoint a separate proxy for each account.

Correspondence Voting & Voting via electronic meansThe Act introduces the voting by correspondence as a new form of shareholder’s voting, before the Shareholders Meet-ing by submitting the vote by postal services. The amend-ment of the Statutes allowing voting by correspondence will require 3/5 of votes of all shareholders. Postal votes must be delivered to the company on the day preceding the day of Shareholders Meeting at the latest. The Act stipulates basic requirements for participation of and voting of shareholders at the Shareholders Meeting by electronic means. According to the Act, the execution of voting rights via electronic means will require usage of verified electronic signature in compliance with the Act no. 215/2005 Coll. to ensure proper identification of the shareholder. The shareholder may vote via electronic means also by proxy. In such case, a Power of Attorney will have to be delivered to a company along with the vote.

Winding-up of a Company by the CourtA significant change is also the modification of the court procedure before issuing the decision on winding-up of a company. This Amendment imposes the court the obligation to make public in the Commercial Bulletin the notification that the proceeding on winding-up of a company without liquidation is conducted, whereas the court may issue a deci-sion on winding-up of a company only after the lapse of a 3-months period from disclosure of such notification in the Commercial Bulletin.

Impact on investorsTransposition of EU Directive 2007/36/EC into national law. The investors may benefit from increased transpar-ency and improved corporate governance in the market.

Bratislava Stock Exchange Trading in JanuaryIn January 2010, the members of the Bratislava Stock Exchange (BSSE) used the electronic trading system in 19 business days. A total of 318 transactions in a finan-cial volume of EUR 1.02 bn were concluded in this period. Both, the number of concluded transactions and the volume, decreased (-30.26% and -25.07%, respectively). Negotiated deals dominated over electronic order book (i.e. price-setting) transactions. A total of 82 negotiated deals in a volume of EUR 1.01 bn were concluded, as opposed to 236 electronic order book transactions in a financial volume of EUR 4.46 mn.

Investors in January 2010 continued to focus on debt securi-ties, as bond transactions represented as much as 99.97% of the achieved volume.

A total of 318 transactions, in a financial volume of EUR 1.02 bn, have been cumulatively concluded on the BSSE since the start of the year 2010. It is a 44.34% decline in comparison with the same period of last year. Transactions concluded by non-residents in January 2010 represented 60.26% of the total trading volume. The SAX index ended the month of January 2010 at 242.14 points, representing a 9.30% decline on a month-on-previous-month basis and a 30.62% decline year on year.

Impact on investorsBSSE performance in January 2010.


27 Slovak Republic

Revision of SAX Index BaseIn respect of the Rules of Construction of SAX Index and proceeding approved by the Commission for the revision of SAX Index on 25 January 2010, BSSE revised on 29 Janu-ary 2010, after the end of the trading session, the SAX Index base. The adjustment coefficients were modified to the equal value of 0.206668 by accepting the maximum of 30 % weight of each participant in the SAX Index basket. Since 1 February 2010, SAX Index includes 9 issues of 5 listed companies.

SAX Index base before and after revision

before revision after revision

Name of companyAbbreviation of company

Number of securities in

issue

Adjustment coefficient

WeightNumber of

securities in issue

Adjustment coefficient

Weight

Biotika BSL 983 199 0.209966 5.438% 983,199 0.206668 5.538%

OTP Banka Slovensko OTP 5 455 841 0.209966 17.648% 5,455,841 0.206668 17.973%

SES Tlmace SES 1 565 345 0.209966 19.443% 1,565,345 0.206668 19.801%

Slovnaft SLN 653 339 0.199662 26.205% 653,339 0.206668 26.688%

VÚB VUB 635 553 0.209966 31.265% 635,553 0.206668 30.000%

Impact on investorsNew SAX Index Base.

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



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Market Capitalisation EUR 21,250mn




SE Turnover (Ljubljana SE) EUR 39.1mn

Monthly Index Performance (SBI 20) 1.0%







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Government Busy Polishing Crisis Exit StrategyA crisis exit strategy will be among the priorities of the Slov-enian government in January 2010. The strategy, which will include both measures to reduce the budget deficit and struc-tural adjustments to enable long-term development, will be part of a wider stability programme to be submitted to the European Commission by the end of January. In November 2009, the European Commission gave Slovenia until 2013 to cut its budget deficit, which is a result of the crisis, to below 3% of GDP as determined by EU rules. In the recommenda-tions, confirmed at the beginning of December 2009 also by EU financial ministers, Slovenia is urged to begin taking measures to cut its deficit in early 2010 and cut its budget deficit by between 0.75 and 1 percentage points annually. In line with the European Commission’s estimates, Slovenia’s government deficit will stand at 6.3% in 2009 and 7% this year. According to Development and European Affairs Min-ister Mitja Gaspari, the government will send the stability programme report to Brussels in January 2010. The report will include a basic strategy for cutting budget deficit, while a programme of structural adjustments will follow in June. Slovenia’s export-oriented economy has been hit badly by the crisis. Partly to blame was also a relatively poor economic structure and past poor management of several major com-panies. The hole created by a drop in industrial output, lack of investments and lower personal consumption figures, thus had to be filled with money from public sources. A swift fiscal consolidation will be one of Slovenia’s top priorities, as the small country needs to put in extra efforts to maintain a good credit rating in the government debt markets. The exit strat-egy, however, is not only aimed at fixing the public finances but also to act as a cornerstone for a sustainable long-term development of the country in the post-crisis period. Slovenia set about drafting an ambitious exit strategy as one of the first EU countries to do so. According to Finance Minister Franc Krizanic, the country is to continue with its expansive fiscal policy as incentives in the form of external demand or invest-ments which are not yet to be expected this year. Krizanic has, however, told STA-Slovenian Press Agency in an inter-view that in the field of restrictive fiscal policy which Slovenia is to employ in order to achieve a balance in public finances, several different measures are being debated. These would kick in when sustainable economic growth is achieved, he explained. He added that changes in the field of taxes and duties were also being considered. A new property tax law and changes to the personal income tax are being drafted, while higher excise duties are expected for tobacco prod-ucts and fuel. Extra taxes for polluters are also envisaged. Structural adjustments as part of the exit strategy meanwhile include the pension and the health care reforms, measures to aid the job market, social contributions reform and an overhaul of the system of social transfer in order to increase


29 Slovenia

effectiveness and fairness. Changes to the management of state property and public services, and the streamlining of development strategies and incentives are also on the table. With expectations of employees and employers clashing in several chapters, the exit strategy and its implementation will certainly be one of the toughest nuts for the government to crack. But Prime Minister Borut Pahor is optimistic. He has warned, however, that success in catching up with the most developed countries will depend on Slovenia alone, as there will be no reasons to blame external factors. The govern-ment’s main aims for 2010 include a 1% economic growth and a survey-based unemployment rate of below 7.5% as well as a 0.5 percentage point cut in the budget deficit.


D&B Fears Another Economic Downturn in 2010The rating firm Dun&Bradstreet expects Slovenian economy to expand at a “healthy pace going into 2010”, there is, how-ever, a risk of a new slowdown during the year. D&B noted in its latest country credit rating report that the growth of Slovenian economy accelerated in the third quarter of 2009. While the demand of Slovenian households shrank, exports were on a rise again in the third quarter. Added value in the manufacturing sector recovered somewhat, while in con-struction and trade it continued to fall. The rating firm said that Slovenian manufacturing benefited above all from increased demand in Germany and European car industry, but noted that the situation could change after the effects of stimulus packages run out. D&B also pointed to growing unemploy-ment, especially in manufacturing, growing dissatisfaction among workers and pensioners, and Prime Minister Borut Pahor’s concerns about expected weak economic growth. D&B also highlighted Transparency International’s latest Cor-ruption Perceptions Index which put Slovenia among the least corrupted countries in Central and Eastern Europe together with Estonia. Slovenia’s rating remains DB2c, which means low level of risk. The rating is labeled as stable.


Fitch Preserves AA credit Rating for SloveniaInternational credit rating agency Fitch Ratings has affirmed Slovenia’s issuer default ratings at “AA” with a stable outlook, the Finance Ministry said on Monday 25 January 2010. Fitch also confirmed for 2010 the short-term foreign currency rating at “F1+”. The rating for Slovenia continues to be based on the country’s relatively well-diversified economy and a stable, transparent political system. Achievements include eurozone membership, which is an asset for Slovenian public finance and country risk evaluation, the ministry recaps Fitch’s report. The ministry quotes Fitch analyst Chris Pryce as saying that past fiscal consolidation has given Slovenia the elbow room needed to take on an unexpectedly serious recession, while its public finance indicators have remained within “AA” scope despite growing deficit and public debt. According to Pryce, renewed efforts for fiscal consolidation will be of key importance for stabilisation and a curbing of public debt after 2011. A sudden crisis on Slovenia’s main export markets has led to a more than 7% drop in GDP in 2009. However, the actual decline was short, lasting only in the final quarter of 2008 and the first quarter 2009, Fitch pointed out. Expansionist measures adopted by the government added around 4% of GDP to the total public finance deficit, which increased to around 5.5% in 2009. Fitch expects the deficit to stay at this level in 2010. The country’s public debt rose to 34% of GDP in 2009, with Fitch projecting a further increase to 44% in 2011. The problem of the ageing population is another continu-ing danger for the long-term stability of public finance, which is why the agency sees a need for timely and decisive measures.


Slovenia Up Seven Spots on Economic Freedom IndexAfter gaining seven spots in 2009, Slovenia was up another seven places in the Index of Economic Freedom for 2010 to rank 61st among the 179 countries included in the survey conducted by the Heritage Foundation, a Washington think-tank, and the Wall Street Journal. Earning an overall score of 64.7 points out of the possible 100 points, which is 1.8 points more than in the year before, Slovenia is among the “moderately free” countries in terms of economic freedom. According to the survey, the “transition of the Slovenian economy to greater economic free-dom continues, facilitated by structural reforms and an increas-ingly vibrant private sector”. The Slovenian economy enjoys a relatively high level of business-freedom, trade-freedom, invest-ment-freedom, property rights, and freedom from corruption. “Business regulations have become more straightforward and transparent, and recent reductions in the corporate tax rate have increased competitiveness”, the survey says. Slovenia mean-while received weak scores for government spending and labour freedom. “The privatisation of state-controlled enterprises has been sluggish. Labour market reforms have also been delayed, hampering employment and productivity growth.” Slovenia’s highest ranking neighbor is Austria (22nd), followed by Hungary (51st), Italy (74th) and Croatia (92nd).


Written and edited by: Elmedina Garibovic Relationship ManagerTel. +386 1 5876 453 · [email protected]


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Market Capitalisation UAH 247.4bn




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Monthly Index Performance (PFTS) 10.6%





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EU to support deepening of cooperation with Ukraine Following a recent meeting of the EU Foreign Affairs Council on Ukraine held in Brussels, EU High Representative for the Common Foreign and Security Policy Catherine Ashton said that the foreign ministers of the EU countries have unani-mously agreed to continue developing cooperation with Ukraine.

The EU High Representative once again congratulated the Ukrainian people on holding the election, which she described as an important example for the region, and she congratu-lated Viktor Yanukovych on his victory.

According to Catherine Ashton, Ukraine is facing several important challenges, among which is the need for Ukraine’s leadership to come to an agreement with the IMF on a USD 17 bn stand-by loan as soon as possible and to implement all the reforms related to this arrangement.

The EU High Representative added that Ukraine needs to guarantee political stability through constitutional reform.

Ms Catherine Ashton said the EU was looking forward to working with the new Ukrainian team and pledged support for Ukraine in conducting the necessary reforms.

Impact on investorsEU pledged to further cooperation with Ukraine.

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



31

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]

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

Adnan Šecibovic Tel. +387 33 562 849 [email protected]

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

Alexander Vuchkov Tel. +359 2 9320 111 [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]

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

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

Ales Polasek Tel. +420 22121 6771 [email protected]

Dora Cermakova Tel. +420 22121 6772 [email protected]


32 Your Contacts

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]

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]


33 Your Contacts

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]

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

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

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

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

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

Websiteshttp://custody.ba-ca.com http://www.unicreditgroup.eu http://www.bankaustria.at

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34

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

Bayerische Hypo- und Vereinsbank AG is regulated by the German Financial Supervisory Authority (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 Bayerische Hypo- und Vereinsbank, London Branch (“HVB 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 associa-tions 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.

HVB London is regulated by the Financial Services Authority 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 Bayerische Hypo- und Vereinsbank AG, New York Branch and UniCredit Capital Markets, Inc. (together “HVB”) 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 HVB is not registered or licensed to trade in securities, commodities or other financial products, any transaction may be effected only in accordance with applicable laws and legislation, which may vary from juris-diction 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 HVB makes no representations as to its accuracy or completeness. Any opinions contained herein reflect HVB’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.

HVB 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 represen-tation or warranty, express or implied, is made regarding future performance.

HVB 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

Bayerische Hypo- und Vereinsbank AG, Munich; UniCredit Bank Austria AG, Vienna and UniCredit S.p.A., Rome

as of 11 August 2009


35

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 · 2012-05-23 · gdp per capita (2009 in eur) 33,203 gdp real 2009 (change against...

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