gss newsletter · 2012-05-23 · unicredit bank d.d. results for the financial year 2009 7...

GSSNEWSLETTERISSUE 108April 2010

Issue 108, April 2010

2

CoNTENTDEAR CLIENTS 4AUSTRIA 6SICS upgraded by detailed information on penalty interest for default delivery 6Investment fund market has overcome trough 62010 will be the year of dividend stocks 6

BoSNIA AND HERzEGovINA 7UniCredit Bank d.d. results for the financial year 2009 7Tripartite agreement to further central banking 7

BULGARIA 9Bulgarian Stock Exchange has published a new strategy for Development 2010 – 2012 9

CRoATIA 12Zlatna Kuna 2009 awards presented 12Abolishment of 2% crisis tax rate 12Government new stimulations 13Government issues new bonds 13

CzECH REpUBLIC 14The CNB comments on the February 2010 inflation figures 14Positive Czech Banking Sector Stress Test Results 14

HUNGARy 16Economic Research Institute Raised Hungary’s GDP Projection for 2010 16Turquoise Extend Trading Service to Hungarian Securities 16

KAzAKHSTAN 17Traded value falls by 20.5% year-on-year, reaches KZT 4.1 trn (USD 27.7 bn) 17Repo transaction market value falls by 27.2% year-on-year, reaches KZT 1.8 trn (USD 12.5 bn) 17GS traded value grows by 183.3% year-on-year, reaches KZT 284.3 bn (USD 1,923.2 mn) 17

KyRGyzSTAN 18poLAND 19The Warsaw bourse becomes a “Recognised Stock Exchange” 19Launch of the Target2Securities National Users Group 19

RomANIA 21Economy 21Fitch Ratings awarded BB+ to Romania’s Eurobonds 21The regulation no. 5 issued by CNVM was published in the Official Gazette 22


3

RUSSIA 23Central Bank Decreased the Refinancing Rate 23FFMS started to publish information of injunctions issued in the name of market players 23FFMS published the Order draft on the Foreign Securities registration and placement in Russia 23RTS launches unified execution on FORTS and RTS Standard 24

SERBIA 25Vienna Initiative Members Allowed to Cut Exposure to Serbia 25Central Bank Approves Reserves Reduction 25

SLovAK REpUBLIC 27Cdcp Statistics 2009 27Bratislava Stock Exchange Trading in February 28

SLovENIA 29Government Amends Law on IMF Membership 29Business Sentiment Down Slightly in February 29D&B Sees Gradual Economic Recovery for Slovenia 30Tuerk Discusses Economic Situation with ECB Officials 30

UKRAINE 31Clearstream opened correspondent account for the National Depository of Ukraine (NDU) 31

yoUR CoNTACTS 32DISCLAImER 35ImpRINT 36


4

DEAR CLIENTS

Lejla Sabljica (Head of GSS in Bosnia)

It is with great pleasure that I take this opportunity to write a few words about UniCredit Bank d.d., member of UniCredit Group in Bosnia and Herzegovina, our local Global Securities Services (GSS) team and the Bosnian Market.

UniCredit Group has a leading position in the banking sector in Bosnia and Herzegovina. The integration of HVB Central Profit Bank d.d. and UniCredit Zagrebačka Banka d.d. started in 2006 and was finalized in early March 2008 with the merger of the two banks. The new bank, UniCredit Bank d.d., currently employs ca. 1400 employees and has 96 branches throughout the country.

UniCredit Bank d.d. has been present in the securities services industry in Bosnia and Herzegovina since its beginnings. The first transaction in the history of the capital market in Bosnia, involving a custody bank, was settled by HVB Central Profit Bank (today’s UniCredit Bank d.d.) in 2006. We are a licensed custody bank that provides securities services in both markets in Bosnia and Herzegovina: Federation of BiH (Sarajevo Stock Exchange) and Republic of Srpska (Banja Luka Stock Exchange). UniCredit Bank d.d. is member of the clearing and settlement system of both CSDs in the country (Federation of BiH and Republic of Srpska).

We are proud of having been ranked Top Rated in 2009, Top rated in 2008 and Commended in 2007 by the Global Custodian magazine.

Members of the GSS team in Bosnia and Herzegovina are highly-skilled custody experts who combine the local market expertise with the knowledge of UniCredit Group know-how. Our GSS experts have been trained to provide securities serv-ices by the SEC and internally within UniCredit Group’s GSS.

Those of you, who have been present in our markets since 2006, the year of introduction of the legislation on securities services, have certainly noticed improvement in terms of the legal framework and the infrastructure in both markets. There are many developments that have marked the Bosnian market. In 2007 it was the exceptional growth of markets, establishment of the first investment fund, licensing banks from FBiH to provide custody services in RS and the first corporate bonds issue in the market. In 2008 custody banks were allowed to apply for the membership of the clearing and settlement system, regulations on securities lending were introduced andthe CSD in FBiH moved the liquidity reserve requirement for all members to T+2 (previously T+1). Year 2009 brought the implementation of a new Law on securities market and Law on investment fund in FBiH, introduction of ISIN codes in the two markets, new market segmentation and price fluctuation limits for the Sarajevo Stock Exchange and the launching of a new index, SASX-30.

The improvement of the market infrastructure continues in 2010. Just recently the CSD in the Republic of Srpska moved the liquid-ity reserve requirement for all members to T+2 (previously T+1).

In this developing market environment, GSS Bosnia and Herzegovina stays committed to securities services and dedicated to meet our clients’ needs and expectations. We continue our lobbying efforts to further develop the market infrastructure in line with the international standards.

I would like to thank all our clients for the trust in UniCredit bank d.d and would like to ensure that providing the best service in Bosnia and Herzegovina to you is and will remain our priority.

Yours sincerely,

Lejla SabljicaHead of GSS in Bosnia


5 Dear Clients

I am very pleased to announce a new member of the GSS’s Global Product and Network Management team, Josip Kevari.

Josip has been in the securities services business for the last 13 years. He started his career in the industry by joining the Custody team at Zagrebacka Banka in 1997. Since then he performed various functions within the Group, includ-ing the position of the Deputy Head of Custody (at Bank Austria Creditanstalt, Croatia), Product Manager (e.g. being responsible for the introduction of Custody Services in Serbia and Bulgaria), as well as Sales and Relationship Manger for Austria at our Vienna office. The last position he held before joining GSS’s Global Product & Network Management was the function of the Network Manager at UniCredit Bank Austria where he overlooked various oversees and western European countries.

In his new role, Josip will report to Pawel Muszalski, Global Head of Product and Network Management.

Please join me in welcoming the new member of the GSS team and wishing Josip all the best in his new role.

Best regards,

Attila Szalay-BerzeviczyManaging Director Global Head of Global Securities Services

Attila Szalay-Berzeviczy Global Head of Global Securities Services

Josip Kevari

DEAR CLIENTS


6

Market Capitalisation EUR 75.0bn

YTD Dev. of Market Capitalisation 0.2%

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

YTD Dev. of SE Transactions n.a.

SE Turnover (Vienna SE) EUR 3.6bn

Monthly Index Performance (ATX/VSE) -2.2%

GDP per Capita (2010 in EUR) 33,266

GDP Real 2010 (Change against prev. year in %) 1.3

3-Month Money Market Rate (current in %) 0.66

Inflation in 2010 (yearly average in %) 1.2

Upcoming Holidays 5 April

Source: Thomson Datastream

Source: Bank Austria, National Statistics

AUSTRIA

600

1100

1600

2100

2600

3100

3600

4100

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz

Actual 38 Day moving average 200 Day moving average

SICS upgraded by detailed information on penalty interest for default deliveryThe clearing system used for the cash market (SICS) has been upgraded by detailed information on penalty interest for default of delivery.

Time schedule regarding the implementation of the new release of SICS:

26 March 2010: implementation in the simulation environment3 May 2010: implementation in the production environment

Detailed information on the amendments of the clearing system can be found on the website of CCP.A. http://en.ccpa.at/

Source: CCP.A

Impact on investorsFor information purposes only.

Investment fund market has overcome troughStatistics compiled by the European Investment Fund Asso-ciation Efama confirm this. Net inflow totaled EUR 190 bn last year. The upturn is notice-able in Austria as well according to the Association of Austrian Investment Fund Companies (Vereinigung oesterreichischer Investmentfondsgesellschaften, VÖIG).

In January 2010, domestic investment fund management compa-nies reported a total of EUR 137.7 bn – which is EUR 12.2 bn more than in January 2009 and EUR 16.4 bn more than in March of the previous year. This increase was driven mainly by rising prices.

Source: Wiener Borse


2010 will be the year of dividend stocks2009 was an exceptional year for stock markets. The lead-ing index in Vienna, the ATX, also rose by 40%. However, this year there will not be any such price jumps according to analysts. “Prices will not develop that spectacularly in 2010,” said financial expert Wolfgang Matejka, “But it will offer great opportunities for the currently neglected defensive stocks with solid dividends Therefore, 2010 will be the year of dividend stocks.”

Source: Wiener Borse


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

http://en.ccpa.at/

mailto:[email protected]


7

Source: Bloomberg

Market Capitalisation (Sarajevo SE) BAM 7.5bn


Number of SE Transactions p.m. 2,044

YTD Dev. of SE Transactions -12.7%

SE Turnover (SASE) BAM 9.8mn

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

Market Capitalisation (Banja Luka SE) BAM 3.6bn

YTD Dev. of Market Capitalisation -4.0%



SE Turnover (BLSE) BAM 4.1mn

Monthly Index Performance (BIRS/BLSE) -2.8%


GDP Real 2010 (Change against prev. year in %) -1.0

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


BAM/EUR 1.94

Upcoming Holidays none

BoSNIA AND HERzEGovINA


700

850

1000

1150

1300

1450

1600

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


UniCredit Bank d.d. results for the financial year 2009 In 2009, the Bank continued improving its position of a relia-ble business partner to individuals, corporates and the State. We managed to maintain a good capital base and solid liquid-ity, while enhancing continuously the quality of our services provided to our clients. In respect of the last year, financial results, net profit before tax, reached BAM 34.5 mn, the total income BAM 180.7 mn. Assets exceeded BAM 3.4 bn. The loan portfolio amounted to BAM 2,257 mn. Out of this amount, retail loans made BAM 1,259 mn and corporate loans BAM 998 mn. Total deposits amounted to BAM 2,626 mn.

At the year end, the Bank had 96 branches in BH, and its client service offer, apart from loans, guarantees, letters of credit and deposits for corporate clients, as well as loans and savings for retail clients, included also SMS service, m-ba mobile banking, standing order, Western Union and MoneyGram money transfers, as well as money market and internet banking transactions.

In 2009, we continued expanding our ATM and POS network, so that at the year end the Bank had 199 installed ATMs and more than 5,000 EFT POS devices at our business partners’ points of sale. UniCredit Bank ATM network was the greatest one in BH, and it provided clients with 24/7 instant access to their accounts. Through the network of 96 branches in the territory of BH, the Bank services more than 930,000 clients.


Tripartite agreement to further central bankingThe European Central Bank (ECB), on 15 March 2010, announced a programme of technical cooperation with the Central Bank of Bosnia and Herzegovina, in collaboration with a number of Euro area national central banks (NCBs). The EU has assigned EUR 1 mn to the programme from its Instrument for Pre-Accession Assistance (IPA). The aim of the programme is to support the Central Bank of Bosnia and Herzegovina in its efforts to implement the central bank-ing standards of the European Union (EU) in preparation for Bosnia and Herzegovina’s accession to the EU. The 18-month programme, a follow-up to the needs assessment programme carried out in 2007, will start on 1 April 2010.

The programme was announced in Sarajevo by Gertrude Tumpel-Gugerell, Member of the Executive Board of the ECB, Kemal Kozari´c, Governor of the Central Bank of Bosnia and Herzegovina, and Dimitris Kourkoulas, Head of the EU Delegation to Bosnia and Herzegovina. All parties agreed that this programme is an important step in strengthening


8 Bosnia and Herzegovina

economic and financial cooperation between the Central Bank of Bosnia and Herzegovina and the Euro area NCBs, as well as between Bosnia and Herzegovina and the EU.

The programme will cover six different areas, the first three of which follow up on the recommendations from the aforemen-tioned 2007 programme: 1) statistics; 2) economic analysis and research; 3) financial stability; 4) harmonisation of legisla-tion with the EU; 5) coordination of integration with the EU; and 6) improvement of the IT services at the Central Bank of Bosnia and Herzegovina.

The programme will involve experts from the ECB, the Deutsche Bundesbank, the Bank of Greece, the Banco de España, the Banca d’Italia, De Nederlandsche Bank, the Oesterreichische Nationalbank and Banka Slovenije. The ECB will dispatch a coordinator to Sarajevo for the duration of the programme.

Source: The Central Bank of Bosnia and Herzegovina


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


9

Market Capitalisation BGN 11.0bn




SE Turnover (Bulgarian Stock Exchange) BGN 28.2mn

Monthly Index Performance (SOFIX) -3.9%





EUR/BGN 1.96

Upcoming Holidays 2, 5 April

BULGARIA



250

325

400

475

550

625

700

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


Bulgarian Stock Exchange has published a new strategy for Development 2010 – 2012The deepening global economic crisis in the second half of 2008 require revision of some of the priorities to the Bulgarian Stock Exchange in order to merge its place in the international capital markets and the marked impact of the crisis over Bul-garian’s sector. This strategy reflects the view of the BSE Sofia about the main challenges and necessary actions to achieve the targets set in the context. The mission of BSE-Sofia is linked with the creation and development of an organized capital market, providing members of the Exchange and their customer’s equal access to market information and equal conditions for participation in trading in financial instruments. The main strategic objective of BSE-Sofia has reached a period of 2 years of modern and an efficient capital market in Bulgaria. Reaching this goal would contribute to become a source of funding for the Bulgarian business and major tool in the Bulgar-ian economy. In this regard, the BSE-Sofia has set the task to undertake the following initiatives to support the primary strategic objective as follows:

■■ Introduction of new instruments, types of contracts and trading opportunities

■■ Improving market infrastructure, together with other institutions

■■ Improving conditions for trade

■■ Attracting new investors and issuers

■■ Regulatory changes

■■ Corporate Governance

■■ Improving corporate structure of the company

1. New instruments and types of orders

■■ Spot-trading with warrants and certificatesAmong short-term objectives of the BSE-Sofia is the establishment of a market for structured prod-ucts, where certificates, warrants and other products based on indices and stocks can be traded. In early November 2009 BSE-Sofia has adopted changes in its Rules relating to regulation of new markets, which come into effect on 8 March 2010 as regards the development of this segment, however, of particular importance will be the desire of financial institutions to issue such instruments and investors to trade with them. With regard to other possibili-ties for the spot-trading financial instruments BSE - Sofia will review and update the rules for their dialogue with the invest-ment and brokerage community about the interest of market participants in launching new types of trading instruments.


10 Bulgaria

■■ Margin buys and short sellingOne of the main priorities in the short term that is rel-evant to both, the introduction of new instruments on the BSE-Sofia and to improve the conditions of stock trading, eliminating the technical difficulties in concluding a margin purchases and short-selling. At the time they are allowed a certain number of financial instruments that meet the defined criteria for liquidity by instruments themselves are announced daily by the Exchange. But the fact is that such transactions are actually missing as many members do not in exchange offer their customers a similar service, because that is the completion of transactions’ signifi-cant difficulties. To resolve this problem BSE-Sofia could involved with expert assistance in the future expansion of activities by clearing a CD that will allow centralized man-agement of benefits and limiting the positions. In addition, an opportunity for short sales of emission shares included in the calculation of indices on BSE-Sofia would allow a later stage to offer products and derivatives (eg futures) on the relevant index.

Thus, this ordinance creates significant barriers on several levels, which mostly can be reduced to:

Lack of effective system for securities lending and management collateral on loansAs is known, the above constitutes to the main problem facing the real implementation of margin purchases and short-selling as it is much more difficult to find free secu-rities to be employed in connection with a beam sale, respectively - to be monitored for their market value and if the grant security corresponds to it. In practice, the absence of such a system compels investment firms appearing to be quasi-clearing institutions with respect to their customers and the lack of a centralized clearing of obstacles when it comes to relations between two individual firms.

Overregulation in terms of margin buys to which they apply same criteria As for margin purchase loans provided generally in the form of money, the possibility of their return is not influenced so much by liquidity instruments as in the short sale where the loan is in the form of securities and liquidity is a major factor in buying back the closure of the position. In this connection, the BSE-Sofia believes that it is not justified that the same criteria for liquidity is applied to both types of transactions. This largely corresponds to international practice by a number of requirements for capital market instruments which only in respect of short selling and margin purchases are left to the discretion of the financial institutions themselves.

Practical problems in relation to the activities of mar-ket-makersSince it is possible within the scope of his activities that a market-maker accidentally steps out of his short posi-tion without actually having a similar design, it would be necessary in such a case to take the existing opportu-

nity to borrow the relevant measures in order to take the short position. At the same time Ordinance � 16 creates practical obstacles most notably by requiring securities to be lent only in connection with short sales.

In pursuance of the above BSE-Sofia will make con-crete proposals to change � 16 of the Ordinance to facilitate the commission of such transactions. The opportunity for a conclusion, however, depends on the availability of efficient clearing, which falls outside the scope of the functions of the regulated market, it can be expected that such transactions would be made possible by the end of 2010.Deadline: end of 2010 Partners: Financial Supervision Commission, Ministry of Finance, Central Depository

■■ Exchange Trade Funds (ETF)In the medium term priorities among the BSE-Sofia is the creation of a market segment trading exchange-traded funds (ETFs). The Exchange, together with other partici-pants establishing working group for structured products in 2009 will contribute to this project, and according to the Bulgarian Association of Asset Management, companies already defined specific proposals for legislative changes. The realization of this objective depends entirely on the exchange, then a specific deadline for making legislative changes cannot be determined, but their actual imple-mentation at BSE - Sofia will take appropriate action in coordination of the changes in trading such products as the platform for commerce opportunity for more effective and especially developed instruments. Deadline: First Quarter of 2011 Partners: Financial Supervision Commission, BAAMC, Ministry of Finance

■■ Futures and OptionsIn the long term, an important strategic objective is the formation of a derivative market that starts trading futures and options, as the realization of such project depends on an efficient clearing. Another problem is related to the liquidity underlying assets on which the structure will be rel-evant derivatives as low liquidity and creates conditions for easier manipulation of their prices and bear very high risk of sudden price movements of derivative instruments. The realization of this objective is highly dependent on other factors such as availability of effective clearing and liquidity and therefore it represents a long-term goal for a period conversion. Also, the Exchange will explore the possibility of providing the market with the necessary data on trade government securities, which in turn will make possible to start trading interest rate futures. For this purpose, a marketing objective is necessary for the coordination with the policies of the BNB and the MoF in this area. Deadline: The first quarter of 2011Partners: Financial Supervision Commission, Ministry of Finance, Bulgarian National Bank, Central Depository, BALIP, ABB, BAAMC


11 Bulgaria

2. Improving the infrastructure of the market

This task is mainly associated with joint actions with the Cen-tral Depository and other market institutions to establish an improvement of the following services:

■■ Clearing on the national levelExchange will support the work of the CD to improve the clearing activities at a national level, as this is crucial both for implementation of margin purchases and short sales and the introduction of new financial instruments on the Bulgarian capital market. Also, regarding the presence of respective technological capabilities, BSE-Sofia believes it is a priority regulation of the so-called non-clearing mem-bership, giving exchange members the opportunity to end their transactions in other (clearing) Article on CD. This is also the preferred way to access foreign market intermediaries. In this sense, the BSE-Sofia will support the ongoing work of the CD without determining its own current time.

■■ Settlement Guarantee FundCentral Depository so far is the institution which carries out clearing and settlement of transactions of financial instru-ments traded on the Exchange, as well as to the possible extension clearing functions of the institution, BSE-Sofia will initiate consultations between participants in the Bulgarian capital market on the possibility of converting Guarantee Fund to the structure of the clearing institution at a later stage. The possibility to implement at this stage may not be strongly indicated, as far as it is associated with changes in the POSA in respect of the guarantee fund of the CD. Also, one should carefully analyze the need for central contractors, in whatever form it ensures the completion of the concluded transactions on the exchange and its effect on the price of the service.

■■ Over-border Clearing and SettlementIn the longer term, the Exchange will assist the Central Depository to make the changes on the level of clearing and settlement, aimed at creating links between individual deposi-tory institutions. The Exchange considers it as appropriate to give local participants in the CD the opportunity to complete their transactions concluded with other instruments on other markets and vice versa. Deals on the BSE-Sofia can be com-pleted in other custodians. This process is a European prac-tice and its realization is possible only if it is associated with lower costs for investors. With respect to this specific task, deadlines cannot be determined because it requires constant action in accordance with the ever-changing atmosphere of the pan-European level in the clearing and settlement.

■■ Construction of a back-up centreIn order to ensure continuity, BSE-Sofia will start project establishment of an independent reserve centre, through which it can minimize risk of equipment failure affecting the proper conduct of trading sessions. Deadline: fourth quarter of 2010

Impact on investorsThe success of these goals has a direct impact on investors.

Written and edited by: Veselin Stefanov Manager Sales & Relationship Management, UniCredit Bulbank ADTel. + 359 2 93 20 112 · [email protected]



12

CRoATIA

Market Capitalisation HRK 178.2bn




SE Turnover (Zagreb SE) HRK 672.0mn

Monthly Index Performance (Crobex/ZSE) -3.0%





EUR/HRK 7.26




1200

1400

1600

1800

2000

2200

2400

2600

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


Zlatna Kuna 2009 awards presentedThe Croatian Chamber of Commerce (HGK) presented at the ceremony the Zlatna Kuna award for the business year 2009, as recognition for the success in business and con-tributions to the Croatian economy companies, banks and insurance companies. The award has been established in 1997 as a support for projects aimed at creating high-quality Croatian products and their positive image on the domestic and international markets.

According to the Croatian Chamber of Commerce (HGK), Koncar – Power Transformers is the best Croatian com-pany, was presented with the Zlatna Kuna award for business excellence in 2009. In the category of medium-sized compa-nies, the Zlatna kuna award was presented to Geofoto from Zagreb, which is providing services in geodesy and geoin-formatics. The best small company is Nexus from Cerna, a company for machine processing and metal production parts for welding machines, machines and robots for the automotive industry.

Privredna banka Zagreb was awarded as the best bank and insurance Uniqa Zagreb as the best insurance company.

Zlatna kuna for innovation was presented to Branimir Ruzo-jcic from TEMA for electric engine with multilayer permanent magnets embedded in rotor laminate, and Vjekoslav Majetic, founder and owner of Dok-Ing for small mining electric bull-dozers.

The Lifetime Achievement Award was presented to Roman Bosco, professor at the Faculty of Agriculture in Zagreb, for a significant contribution to the scientific development of the mushroom-growing areas and flesh technology.

Impact on investorsFor information purpose only.

Abolishment of 2% crisis tax rateThe two percent tax on incomes ranging from HRK 3,000 to HRK 6,000 will be abolished as of 1 July 2010. This was announced by Prime Minister Jadranka Kosor at a govern-ment session. She continues by saying that government wants to give additional stimulus to spending and to boost optimism in the country. She thanked all citizens for showing their understanding at the time when the government made “the tough decision” to impose the crisis tax. The PM said that the government would continue to carry out its pro-gramme consistently, again highlighting the three main pillars of its work – aid to the economic sector, an uncompromising fight against corruption, and completion of EU membership


13 Croatia

negotiations; so that Croatia could sign an accession treaty early next year. The law on special tax on salaries, pensions and other receipts, imposed last summer as part of aus-terity measures to counter the economic crisis, introduced two tax rates – 2% on incomes ranging from HRK 3,000 to HRK 6,000 and 4% on incomes exceeding HRK 6,000. The tax is calculated on the entire income and it is applied only to Croatian residents, both natural and legal persons.

The Croatian Employers’ Association (HUP) and leaders of trade union federations have welcomed the announcement by Prime Minister on annulling the 2% crisis tax on monthly incomes ranging from HRK 3,000 to HRK 6,000.

Impact on investorsFor information purpose only.

Government new stimulationsThe government prepared HRK 326 mn packages of incentives for small and medium-sized entrepreneurship this year. The package consists of six areas of incentives – competitions and inventions (HRK 108.4 mn), entrepre-neurial infrastructure (HRK 80.6 mn), subventions for interest rates on enterprise loans (HRK 55.5 mn), education (nearly HRK 6 mn), trades and crafts (HRK 18.7 mn) and EU SME projects (HRK 38.7 mn). Economy Minister Djuro Popoijac said the package consisted of 18 projects, such as women in entrepreneurship, young entrepreneurs, and promoting competition through inventions.

The government also endorsed a document on the reform of the agricultural grants system in Croatia in 2010-2013. The document is expected to be passed into act by this summer, which way Croatia will have met one of the benchmarks for the negotiating chapter Agricultural and Rural Development within its European Union membership talks. Agriculture Ministry State Secretary Stjepan Mikolcic said this concept envisaged the further reduction of types of grants in agri-

culture. In 2008, Croatia had more that 270 different types of grants, but reduced them to 39 types in 2009. The new concept simplifies the grant system by dividing grant types into eight groups. Mikolcic said that the IPARD plan, the EU pre-accession IPA Agriculture and Rural Development Plan for Croatia, started with EUR 26 mn. The financial fund for agriculture will be EUR 360 mn and EUR 210 mn for rural development in 2012, under IPARD.

Finance Minister Ivan Suker announced at a meeting of the Economic and Social Council that the government would soon present “Model C” measures to companies that had been in financial trouble for years. Each of those companies has specific problems that need to be addressed. Suker said it was important that Model C is supported by all three social partners, adding that there were a lot of companies that would have been operating at a profit today had they had the courage and strength to restructure in time.

Impact on investorsGovernment stimulations are aimed at helping strengthen small and medium-sized entrepreneurship, reform of the agricultural grants system and recovery of companies in financial troubles.

Government issues new bondsThe Croatian government issued a new ten-year bond in the amount of HRK 3.5 bn and EUR 350 mn in the kuna equivalent on the domestic market. The annual interest rate is 6.75% for the kuna bonds and 6.50% for the euro bonds issued in the kuna equivalent.

The bond issue is used to reschedule and change the debt structure by replacing short-term debts with long-term ones. The new bond fall is due on 5 March 2010.

Impact on investorsNew bond on Croatian market.

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


14

Market Capitalisation CZK 1.3trn




SE Turnover (Prague SE) CZK 65.8bn

Monthly Index Performance (PX) -3.2%





EUR/CZK 25.69



CzECH REpUBLIC


600

700

800

900

1000

1100

1200

1300

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


The CNB comments on the February 2010 inflation figuresInflation comes in below the CNB forecast in FebruaryAccording to figures released on Thursday 9 March 2010, the price level increased by 0.6% year on year in Febru-ary 2010. Compared to January, inflation thus has declined slightly further and has moved below the lower boundary of the tolerance band set around the CNB’s new 2% target valid since the beginning of 2010. Monetary-policy relevant inflation, i.e. inflation adjusted for the first-round effects of changes to indirect taxes, was -0.4% in February.

Annual headline inflation was 0.3 percentage points lower than the current CNB forecast in February 2010. Part of this deviation was due to the developments in January. The February deviation from the forecast was due mainly to lower adjusted inflation excluding fuels. By contrast, fuel and food prices were higher than expected. The prediction of regulated prices and the effects of changes to indirect taxes roughly materialized.

Despite the deviation from the forecast, the price develop-ments observed so far in the first quarter are broadly in line with the message of the current forecast. According to this forecast, headline inflation should rise in the course of 2010 and, due to the effect of the tax changes, get slightly above the CNB’s target of 2% in the second half of the year. At the monetary policy horizon, i.e. in 2011 H1, headline inflation will be close to the inflation target. Monetary-policy relevant inflation will be below headline inflation from the start of this year (owing to indirect tax changes). It will then approach the CNB’s target from below over the monetary policy horizon.

Source: CNB


Positive Czech Banking Sector Stress Test ResultsThe Czech banking sector remains resilient to shocks aris-ing from potentially adverse macroeconomic developments in 2010-2011 according to stress tests conducted by the Czech National Bank (CNB) in February 2010. Not even in an extreme and highly implausible economic deterioration scenario does the capital adequacy of the entire sector fall below the regulatory minimum of 8%, affirms the stress test results published by the CNB.

“Foreign observers are surprised to see how little the domes-tic banking sector has been affected so far by the global financial crisis and the subsequent recession. From our perspective it is important that it remains profit-making and


15 Czech Republic

enters the period ahead well-capitalized,” said Jan Frait, the CNB’s main financial stability expert. “According to the CNB’s analyses, it should be able to remain resilient to potential shocks in the coming two years, despite the expected weak economic growth,” he added.

For the next two years, the risks to financial stability remain high in the Czech Republic. A renewed recession in Europe is the major risk. A potential loss of financial market confidence in governments’ ability to finance growing national debts is another significant risk arising from the current fiscal trends in some European countries. The macroeconomic stress scenarios chosen capture these risks. According to these stress scenarios, rising NPL losses and weaker operating profit stemming from potential adverse macroeconomic developments in the Czech Republic could put some banks into a loss-making situation.

Although the sector as a whole maintains its capital adequacy above the regulatory threshold, this indicator could drop below 8% in several banks owing to losses, and the share-holders of such banks would be forced to increase their capital. Even in the worst scenario, however, smaller capital injections would be needed to make up the capital ade-

quacy of all banks having their registered offices in the Czech Republic to the required minimum than suggested by the last published bank stress tests results in June 2009-Financial Stability Report. According to the current stress tests, the increase in regulatory capital necessary in the most pes-simistic scenario is estimated at roughly CZK 13 bn, i.e. no more than 5% of the existing bank regulatory capital and less than 0.5% of GDP. In last year’s Financial Stability Report, the capital injections necessary in the worst stress scenario were calculated at CZK 15.7 bn.

The capital adequacy of the banking sector stood at 13.41% at the end of November 2009 with none of the banks record-ing a figure lower than 10%.

The actual stress test results are available on the CNB website:

http://www.cnb.cz/m2export/sites/www.cnb.cz/en/financial_stability/stress_testing/2010/stress_test_results_2009_q4.pdf

Source: CNB

Impact on investorsPositive prediction for the Czech banking sector.

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





16

Market Capitalisation HUF 17,869.6bn



YTD Dev. of SE Transactions 21.8%

SE Turnover (Budapest SE) HUF 657,992mn

Monthly Index Performance (BUX) -3.0%





EUR/HUF 267,86



HUNGARy


7500

10000

12500

15000

17500

20000

22500

25000

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


Economic Research Institute Raised Hungary’s GDP Projection for 2010Economic Research Institute Kopint-Tarki has raised its pro-jection for Hungary’s economic growth in 2010 to 0.8% from a forecast of 0% in December 2009. Kopint-Tarki put GDP growth in 2011 at 3.0%.

According to the research institute, household consumption fell by 0.5% in 2010 after plunging by 6.7% in 2009. Real wages are set to rise by 3.5% due to taxation changes, up from Kopint-Tarki’s earlier projection of 1.5%. The think tank said that Hungary’s domestic consumption would stagnate and industrial output would grow by 4.0%. Household sav-ings are expected to rise to 4.6% of GDP in 2010 from 3.2% in 2009, moving close to the 5-6% EU average.

Kopint-Tarki forecasts the average annual inflation by 4.2% this year and by 3.2% next year. It sees that the base rate of the National Bank of Hungary could fall to 4.50-5.00% by December 2010.

Impact on investorsThe market expectations of the Economic Research Institute Kopint-Tarki for 2010 and 2011 in Hungary are summarized above.

Turquoise Extend Trading Service to Hungarian SecuritiesTurquoise and EuroCCP have recently announced to have expanded their respective trading and clearing services into the Hungarian market. The move makes Turquoise the first multilateral trading facility to offer trading and EuroCCP the first pan-European CCP to offer clearing services in 12 com-ponents of the main Hungarian BUX index.

Turquoise offers trading in the Hungarian securities cleared through EuroCCP as of 26 February 2010.

Impact on investorsHungarian securities may have been traded also on Turquoise since the end of February 2010.

Written and edited by Zsanett Lencsés Senior Sales & Relationship ManagerTel. +36 1 301 1920 · [email protected]


17

Market Capitalisation KZT 13,069.7bn




SE Turnover (KASE) KZT 9.9bn

Monthly Index Performance (KASE) 1,864.2





EUR/KZT 201,34


Source: Bloomberg

KAzAKHSTAN


500

700

900

1100

1300

1500

1700

1900

2100

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


Traded value falls by 20.5% year-on-year, reaches KZT 4.1 trn (USD 27.7 bn) In January and February 2010 value traded on Kazakhstan Stock Exchange (KASE) in all market sectors reached KZT 4,095.6 bn (USD 27,693.8 mn) and fell on a year-on-year basis by 20.5% (28.5% in dollar terms).

As compared with the previous two-month period (Novem-ber-December 2009) traded value fell by 4.9% (4.1% in dollar terms).


Repo transaction market value falls by 27.2% year-on-year, reaches KZT 1.8 trn (USD 12.5 bn) In January and February 2010 repo transaction market value on Kazakhstan Stock Exchange (KASE) reached KZT 1,846.3 bn (USD 12,485.1 mn) and fell on a year-on-year basis 27.2% (35.0% in dollar terms).

As compared with the previous two-month period (Novem-ber-December 2009) traded value grew by 34.0% (35.1% in dollar terms).


GS traded value grows by 183.3% year-on-year, reaches KZT 284.3 bn (USD 1,923.2 mn) In January and February 2010 government securities (GS) value traded on Kazakhstan Stock Exchange (KASE)* reached KZT 284.3 bn (USD 1,923.2 mn) and grew on a year-on-year basis by 183.3% (159.7% in dollar terms).

As compared with the previous two-month period (Novem-ber-December 2009) traded value fell by 11.9 % (11.2 % in dollar terms).

Impact on investorsFollowing information shows changes of the business activity in the Kazakhstan market from the beginning of the year 2010.

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


18

KyRGyzSTAN

Market Capitalisation n.a.

YTD Dev. of Market Capitalisation n.a.

Number of SE Transactions p.m. 154


SE Turnover (KSE) KGS 154.5mn

Monthly Index Performance (KSE) n.a.

GDP per Capita (2010 in EUR) 1,457.19



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

EUR/KGS 61.35



In February 2010 KSE trades volume decreased and made up KGS 0.15 bn ($3.35 mn) with 154 trades provided.

Trades volume on JSC “Kyrgyz Stock Exchange” for Febru-ary 2010 made up KGS 19.14 mn ($0.43 mn) with 81 trades provided.

Trades volume on JSC “Kyrgyzstan Stock Exchange – BTC” for February 2010 made up KGS 2.079 mn ($ 46492) with 71 trades provided.

Trades volume on JSC “Central Asian Stock Exchange” for February 2010 made up KGS 133.32 mn ($2.3 mn) with 2 trades provided.

Impact on investorsFollowing information shows changes of the business activity in the Kyrgyzstan market in February 2010.

Written and edited by: Zhanna Mussakhanova Leading Specialist, Trade Settlement Unit.Tel. +7 727 258 30 15 · [email protected]


19

Market Capitalisation PLN 411.3bn




SE Turnover (WSE) PLN 15.2bn

Monthly Index Performance (WIG20) -5.2%

Monthly Index Performance (WIG) -3.2%





EUR/PLN 3.88

Upcoming Holidays 5 April


poLAND


1250

1500

1750

2000

2250

2500

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


The Warsaw bourse becomes a “Recognised Stock Exchange”The Warsaw Stock Exchange (WSE) received the “Recog-nised Stock Exchange” designation from HM Revenue and Customs (HMRC). The designation awarded to the WSE Main Floor and the retail regulated segment of Catalyst Bond Market will make these markets more attractive and acces-sible for UK-based investors.

Being the largest stock exchange in Central and Eastern Europe (in terms of market capitalisation and equity trading value), the Warsaw bourse is actively building its international reputation. More than a third of equity trading on the WSE Main Floor already originates outside of Poland.

The “Recognised Stock Exchange” designation awarded by HMRC offers UK-based investors trading in securities listed on the Warsaw bourse the possibility to profit from a vari-ety of tax incentives. The most important one is the income tax exemption on funds invested in securities that meet the HMRC definition of ‘listed’ on a recognised stock exchange through individual savings accounts (ISA). Institutional inves-tors trading on a recognised stock exchange may lower their taxes by means of assets amortization.

All securities available on the WSE Main Floor as well as on regulated retail segment of Catalyst Bond Market meet the HMRC interpretation of ‘listed’ instruments. UK investors may choose from close to 380 companies, a variety of deriva-tives, structured products as well as municipal, corporate and Polish treasury bonds. The Warsaw bourse joined other leading European exchanges that have already been rec-ognised by HMRC, e.g.: NYSE Euronext, Deutsche Boerse and Wiener Boerse.

Source: The Warsaw Stock Exchange

Impact on InvestorsThe “Recognised Stock Exchange” designation may attract Polish market for UK-based investors.

Launch of the Target2Securities National Users GroupThe National Users Group (NUG PL) – Polish task force assessing the feasibility and procedure of connecting the Polish market to Target2Securities, held its first meeting in March. The session organised by the National Depository for Securities (NDS) in partnership with the National Bank of Poland was attended by representatives of banks and brokerage houses, market organisations, the Warsaw Stock Exchange, the Ministry of Finance, and the Polish Financial Supervision Authority. One of the first tasks of NUG PL is to


20 Poland

draw up a list of barriers and risks related to the accession of NDS and Polish entities to T2S. For this purpose, NDS will carry out broad consultations with participants and institu-tions of the Polish capital market.

The Target2Securities IT platform is being developed by ini-tiative of the euro-area central banks in cooperation with the central securities depositories of European countries. The mission of T2S is to facilitate and reduce the cost of trans-border settlement of transactions in securities based on the DVP (delivery vs. payment) principle in central bank money. In technical terms, the project consists in outsourcing of settlement functions to the T2S platform.

Source: The National Depository for Securities

Impact on InvestorsFor information purposes only.

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



21

Market Capitalisation RON 85.6bn




SE Turnover (Bucharest SE) RON 1,460.4mn

Monthly Index Performance (BET/BSE) 5.2%





EUR/RON 4.10



RomANIA


1750

2400

3050

3700

4350

5000

5650

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


EconomyAnnual inflation rates below the analysts’ expectations

The annual rate of inflation in Romania fell in February to 4.49% from 5.20% recorded in January, after consumption prices went up 0.20% against the previous month, according to the Romanian National Statistics Agency (INS). Economists estimated the annual inflation to 4.6% in February, based on a 0.3% increase in consumerist prices.

In regard to the non-food goods, the most important increases in prices were applied to heating (up 1.83%), books, news-papers, magazines (+1.35%), tobacco and cigarettes (up 0.60%). Meanwhile cars and spares dropped in price by 0.15%.

The services that now cost more are urban transport (up 1.39%), water, sewage, sanitation (+0.44%) and inter-city road transport, up 0.34%.

At the same time, telecoms are 0.68% cheaper and air trans-port costs 0.67% less.

The Romanian Central Bank (BNR) aims a 3.5% inflation rate this year, plus/minus one percentage, but forecasts that the inflation will read 4.5% by the end of the year.

Impact on investorsNBR inflation rate target.

Fitch Ratings awarded BB+ to Romania’s Eurobonds Fitch Ratings awarded BB+ to the Eurobonds issue that expires every five years, worth of EUR 1 bn. It was launched on 11 March, by the Romanian Government, as the financial evaluation agency report shows. This rating is similar to that Romania received for long term foreign currency debt.

On 11 March Romania launched a Eurobonds issue worth of EUR 1 bn, with a five-year maturity and a 5% coupon. The issue was oversubscribed approximately five times: the first was paid above the index of the market (mid-swap), amount-ing to 268 base points at the five-year maturity.

On 2 February Fitch Ratings improved Romania’s rating from “negative” to “stable” and confirmed BB+ and BB- for long term debts in foreign and national currencies. At the same time, the agency confirmed the country limit and the rating for short term debt in foreign currency to BBB and B, respectively.

Impact on investorsFitch rating for the Romanian Government Eurobonds.


22 Romania

The regulation no. 5 issued by CNVM was published in the Official GazetteOn 16 March 2010 the regulation no. 5/2010 issued by CNVM was published in the Official Gazette. The regulation approved the global accounts system by all market par-ticipants. Since now the global accounts were used only by custodian banks.

BSE and Central Depository have to provide CNVM in a 60 days period, with the amendments of the current regula-tions in respect with the global accounts system applicability.

Impact on investorsGlobal accounts system to be used in the Romanian capital market within a 3-months-period.

Written and edited by: Andreea Albu Global Securities Services Account ManagerTel. +40 21 200 26 78 · [email protected]



23

Market Capitalisation RUB 16.8trn


Number of SE Transactions p.m. (MICEX) 8,850,564


SE Turnover (MICEX) RUB 4.159trn

Monthly Index Performance (RTS) 4.8%

GDP per Capita (2010 in EUR) 573




EUR/RUB 0.02



RUSSIA


500

700

900

1100

1300

1500

1700

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


Central Bank Decreased the Refinancing RateThe refinancing rate has been reduced to 8.5% according to the decision of the Central Bank starting from 24 Febru-ary 2010.

Impact on investors: Reducing of refinancing rate will stimu-late credit activity of Russian banks.


FFMS started to publish information of injunctions issued in the name of market playersOn 26 February 2010 Federal Financial Market Services (FFMS) started to publish information of injunctions issued in the name of market players on the FFMS web-site. Pre-viously such information was available only in regards to Pension Funds and Registrars. Currently FFMS reported the total or partial operations injunctions of 10 companies, mostly brokers and trustees.

Impact on investorsThis measure will allow to increase market transparency and discipline.

FFMS published the Order draft on the Foreign Securities registration and placement in RussiaFederal Financial Market Services (FFMS) published the Order draft on the Foreign Securities registration and placement in Russia. FFMS considers the foreign securities prospectus registration under the following conditions:

1. ISIN and CFI codes are allocated to the Security;2. Issuer is:

■■ Originated in the country - member of Organization for Economic Co-operation and Development (OECD), Fi-nancial Action Task Force on Money Laundering (FATF) and/or Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Ter-rorism of the Council of Europe (MONEYVAL),

■■ Originated in the country which signed agreement with FFMS;

■■ International organization included in the list approved by the Government of Russian Federation;

■■ Foreign country – member of Organization for Econom-ic Co-operation and Development (OECD), Financial Action Task Force on Money Laundering (FATF) and/or

http://www.eurasiangroup.org/en/moneyval.html




24 Russia

Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism of the Council of Europe (MONEYVAL).

The Order draft applies to the registration of the foreign secu-rities without involvement of Stock exchanges and contains the detailed list of required documents and registration proc-ess steps.

Impact on investorsThis document will clarify the order of the foreign securities registration and placement in Russia.

RTS launches unified execution on FORTS and RTS StandardFrom 12 March 2010 Russian Trading System RTS will launch unified execution of futures on stocks on FORTS and RTS Standard markets. Unified execution is the technology for simultaneous execution of deliverable futures contracts on securities on RTS FORTS market and equities transactions on the RTS Standard market allowing market participants to net liabilities on both the derivative and stock markets. The process of switching to this new technology will take several stages.

Impact on investorsThe unified execution will reduce expenses associated with realization of arbitrage strategies and will decrease opera-tional risks during delivery execution. This new technology will also improve trading efficiency on both the stock and derivatives markets. The introduction of the unified execu-tion will allow market participants to decrease collateral on futures contracts prior to delivery.

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





25

Market Capitalisation RSD 880.0bn




SE Turnover (Belgrade SE) RSD 1.97bn

Monthly Index Performance (Belex 15) 4.1%





EUR/RSD 98.30


Source: Bloomberg

SERBIA


300

400

500

600

700

800

900

1000

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


Vienna Initiative Members Allowed to Cut Exposure to Serbia According to the official press release, the National Bank of Serbia (NBS) has allowed banks on the market, members of ‘’Vienna initiative’’, to cut exposure to the Serbian market to 80% of the level agreed last April 2009 upon conclusion of agreement in Vienna. At the same time, the agreed benefits to participating banks remained active and unchanged.

The NBS decision is a result of agreement between biggest foreign banks in Serbian market and international lending institutions, that the Serbian market conditions allow gradual lowering of their market exposure.

The so called ‘’Vienna initiative’’ was launched in April 2009, upon agreement between 10 largest foreign banks operat-ing on Serbian market and reputable international lenders, supported by the International Monetary Fund, to keep the exposure to the Serbian market at the same level as at the end of 2008 and give support to their subsidiaries present on the market, during 2009.

Despite the decision to allow exposure decrease, the Gov-ernor of the NBS Mr. Radovan Jelasic stated that he does not expect the banks, members of ‘’Vienna initiative’’, to lower the exposure in 2010, but to increase it as already done in 2009.

Impact on investors‘’Vienna initiative’’ members granted market exposure decrease but in fact expected to boost it in 2010, bring-ing positive outlook for 2010 to investors interested in the Serbian market.

Central Bank Approves Reserves Reduction According to the official press release, the monetary board of the National Bank of Serbia (NBS) has decided to cut manda-tory bank reserve requirements from 40% and 45% to 25% for foreign currency base and from 10% to 5% for local cur-rency RSD base. This decision also cuts previously granted exceptions to which previously existing rules did not apply.

Local banks will not comply with new rules instantly, but will gradually apply new reserve requirements during 2010 to prevent sudden withdrawing of foreign currency funds from the country. The NBS Governor Mr. Radovan Jelasic noted that such moves were agreed with the International Monetary Fund (IMF). Any additional remaining funds after the 2010 will be reimbursed to the banks until April 2011 in three monthly installments, starting from February 2011. The NBS further noted that their decision predicts a one-year adjustment


26 Serbia

period of compliance with the new reserve requirement rates. The decision will come into force on 18 March 2010.

According to the same press release, the goal of the NBS decision is to make transparent and uniform reserve requirements on the market and to encourage local banks to increase cross border borrowing, local lending and to increase savings deposits.

Impact on investorsThe NBS approved gradual mandatory bank reserves cuts, loosening the Serbian market conditions.

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



27

Market Capitalisation EUR 21.7bn


Number of SE Transactions p.m. 481.0


SE Turnover (Bratislava SE) EUR 1.0bn

Monthly Index Performance (SAX/BSSE) -3.8%





EUR/SKK 30.13

Upcoming Holidays 2. 5 April


SLovAK REpUBLIC


225

250

275

300

325

350

375

400

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


Cdcp Statistics 2009The Central Securities Depository of the Slovak Republic (CDCP) has published a yearly statistics for 2009. We sum-marize the main developments.

Registered Issues of SecuritiesBy 31 December 2009 the total nominal volume of book-entered securities registered in client’s accounts was EUR 61.11 bn out of which the highest share were shares in the total volume of EUR 38.88 bn. The number of registered share issues was 2,158.

The volume of debt instruments registered with client accounts was EUR 21.859 bn; number of debt issues was 363. The volume of Agriculture Cooperatives´ certificates registered with client accounts was EUR 0.35 bn, number of these issues was 563. The number of Fund Certificates registered with CSD was 17 at the volume of EUR 5.51 mn.

In comparison to 2008 the total nominal volume of book-entered securities increased by EUR 3.38 bn (+5,85 % y/y) mainly thanks to registration of high volume of two Treasury Bills issues.

During the year 2009 new issues of securities in total volume of EUR 7.72 bn were issued in 132 new issues. Bonds and T-bills brought new volume of EUR 7.32 bn and 54 new issues. Newly registered shares represented the volume of EUR 0.4 bn and 75 new issues.

During the year 2009 a total of 363 issues in the volume of EUR 6.01 bn were deregistered. Out of which 208 issues were shares, 72 issues were debt securities and the rest were certificates of Agricultural Cooperatives and Funds.

Other DevelopmentsNumber of registered issuers of book entered securities decreased in 2009 in comparison to 2008 by 212 issuers (-9.46 % y/y) and reached 2028 issuers. At the same time the number of registered issuers of shares issued in physical form increased by 116 (+3.59% y/y) and reached number of 3350 issuers.

Against Payment TransactionsThe volume of securities settled against payment was EUR 9.088 bn in 2009. The number of against payment (AP) transactions was 3545. The average daily number of AP transactions was 14 and the average daily transacted volume was EUR 35.5 mn. In comparison to 2008 the number of transactions increased by 11.37% and the volume by EUR 5.571 bn (+158.44 y/y).


28 Slovak Republic

Free of Payment TransactionsThe nominal volume of securities settled free of payment was EUR 14.89 bn in 2009. Average daily volume of transacted securities was EUR 58.19 mn. The total number of transac-tions was 48,264 with daily average of 189 transactions. In comparison to 2008 the volume of free payment transac-tions decreased by EUR 13.46 bn (-47.47 % y/y). At the same time the number of transactions increased by 34,949 transactions (+262.48% y/y).

Impact on investorsOverview of securities issues registered at CDCP and transactions settled in 2009.

Bratislava Stock Exchange Trading in FebruaryIn February 2010, members of the Bratislava Stock Exchange (BSSE) concluded 481 transactions, in a financial volume of EUR 1.04 bn. In comparison with the previous month it represents a 2.50% increase in achieved financial volume and a 51.26% growth in the number of concluded transac-tions. On a year-on-year basis, the achieved volume dropped by 22.85%. Similar to previous months, negotiated deals again dominated over electronic order book (i.e. price-set-ting) transactions. Their percentage share in the total trading volume surpassed 99.47%. A total of 121 negotiated deals in a volume of EUR 1.04 bn were concluded in February 2010, as opposed to 360 electronic order book transactions in a financial volume of EUR 5.57 mn.

Bond transactions accounted for as much as 99.97% of the achieved volume. A total of 114 bond transactions were con-cluded in the period under review, in which 787,964,079 units of securities were traded in a volume exceeding EUR 1.04 bn. Thus the volume and the number of concluded transactions rose on a month-on-previous-month basis by 2.51% and 22.58%, respectively. Compared with the same period of the year 2009, however, the achieved volume fell by 22.85% and the number of concluded transactions went down as much as 30.91%.

Equity securities of local companies, still neglected by inves-tors, were bought and sold in 367 transactions, in a financial volume of EUR 278,643. In comparison with the previous month, it is a decline in the amount of traded securities (-46.26%) as well as in the achieved volume (-21.48%). The number of concluded transactions, on the other hand, increased in the same comparison by 63.11%.

A total of 799 transactions, in a financial volume of EUR 2.06 bn, have been cumulatively concluded on the BSSE since the start of the year 2010. It represents a 35.2% decrease against the same period of last year.

Transactions concluded by non-residents in February 2010 accounted for 34.72% of the total trading volume.

As of the last trading day of the month of February 2010, the market capitalisation of equity securities increased on a month-on-previous-month basis by 0.34% to EUR 3.49 bn. The market capitalisation of bonds totalled EUR 18.21 bn, representing a 7.59% decline on a month-on-previous-month basis.

The SAX index ended the month of February 2010 at 233.00 points, representing a 3.77% decline on a month-on-previ-ous-month basis and a 29.79% decline year on year.

Impact on investorsBSSE performance in February 2010.

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



29

Market Capitalisation EUR 20,951mn




SE Turnover (Ljubljana SE) EUR 40.3mn

Monthly Index Performance (SBI 20) -4.0%







SLovENIA


3000

3500

4000

4500

5000

5500

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


Government Amends Law on IMF MembershipThe government adopted on Thursday, 11 February 2010 amendments to the act on Slovenia’s membership in the International Monetary Fund (IMF), which regulates anew the relations between Slovenia’s central bank and the govern-ment in line with the European law. The changes introduce a special agreement between Banka Slovenije and the Finance Ministry. According to Finance Minister France Krizanic, the relations will be regulated in a similar way as before. When Slovenia sends money to countries entitled to IMF aid, it will provide the funds from the state budget and reserves, while additional costs, which are expected to increase, will be covered by Banka Slovenije. However, costs arising from unpaid loans or changes in currency exchange rates will be covered from the budget. Krizanic expects no direct impact on the state budget. Higher costs are expected to arise from the efforts of deal-ing with the crisis, especially in developing countries, and from ensuring sufficient growth of the global market, which will bring further benefits to small, open economies such as Slovenia, Krizanic explained.


Business Sentiment Down Slightly in FebruaryBusiness sentiment in Slovenia deteriorated slightly in Febru-ary, as the seasonally-adjusted indicator was one percent-age point higher compared to January, and 15 percentage points down on February 2009, the Statistics Office said on Monday, 22 February 2010. The main reason was a lower services confidence indicator.

Confidence in manufacturing was level compared to the month before, but was down 26 points year-on-year. Expec-tations for the coming three months are mostly negative. In retail, confidence increased by 2 percentage points at the monthly level and 6 percentage points year-on-year. The majority of companies said the main limiting factor was competition, low demand and high labour costs.

The seasonally-adjusted confidence indicator for construction was also level compared to January, and was down 15 per-centage points year-on-year. Expectations in the sector for the coming three months are mostly negative.

The business sentiment indicator was pulled down by the serv-ices confidence indicator, which decreased by 4 percentage points on January. It was however up 3 percentage points year-on-year. Expectations for the next three months are favourable, except the expected demand indicator, the office said.


30 Slovenia

The consumer confidence indicator meanwhile increased by two percentage points compared to the month before. This is largely due to optimistic expectations of consumers regarding savings for the next 12 months.


D&B Sees Gradual Economic Recovery for SloveniaWhile expecting the number of unemployed and receivership proceedings in Slovenia to increase further, the rating firm Dun&Bradstreet has also perceived gradual recovery of the Slovenian economy.

D&B noted in its latest country credit rating report on Thurs-day, 04 February 2010 that Slovenia’s political environment is very stable.

However, pressure will be caused by the announced reforms and measures with which Slovenia wants to reduce budget deficit.

According to the report, Slovenian banks remain in a good shape, and eurozone membership all but eliminates exchange rate risks.

“Policy-making is sound, and there is a well-educated yet affordable workforce,” it says, adding that Slovenia has low levels of corruption and extensive trade links with both West-ern Europe and the emerging markets of Central and Eastern Europe.

Slovenia’s rating remains DB2c, which means a low level of risk. The rating is labelled as stable.


Tuerk Discusses Economic Situation with ECB OfficialsPresident Danilo Tuerk met at the headquarters of the Euro-pean Central bank (ECB) in Frankfurt on Wednesday, 03 February 2010 the bank’s president Jean-Claude Trichet and ECB executive board member Lorenzo Bini Smaghi, discussing the economic situation in the eurozone and a reform of financial system regulation.

The bank plays a very important role in the efforts to reform financial system regulation as part of the Financial Stability Board at the level of the G-20 major economies, the presi-dent’s office said.

Tuerk was acquainted with the economic trends in the euro-zone and expectations for 2010. Trichet and Bini Smaghi also presented the president the bank’s efforts to provide financial stability in time of the implementation of exit strategies.

ECB has been providing for maintenance of liquidity and stability of the financial system of the euro area with numer-ous monetary policy measures in time of the financial and economic crisis.


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


31

Market Capitalisation UAH 234.4bn




SE Turnover (PFTS) UAH 3.1bn

Monthly Index Performance (PFTS) 11.2%





EUR/UAH 10.84



UKRAINE


600

1100

1600

2100

2600

3100

3600

4100

Mrz

Ap

r

Ma

i

Ju

n

Ju

l

Au

g

Se

p

Okt

No

v

De

z

Ja

n

Fe

b

Mrz


Clearstream opened correspondent account for the National Depository of Ukraine (NDU)NDU has established correspondent relations and opened a correspondent account with the Clearstream Banking Lux-embourg (ICSD).

NDU cooperation with Clearstream opens up new possi-bilities for Ukrainian companies related to operations with securities placed abroad.

According to the legislation of the Ukraine establishing cor-respondent relations with foreign depository institutions is an exclusive competence of the National Depository of Ukraine.

For today NDU has correspondent relations with the following foreign depository institutions: Austrian CSD (OeKB), Russian ‘Rosbank’, ‘Infinitum’, ‘Depository and Corporate Technolo-gies’, and Central Moscow Depository.

Since the beginning of 2009, through the system of NDU correspondent relations, nearly USD 10 mn had flown into the Ukraine.

Today, the total nominal value of securities nominated in for-eign currency that are being serviced within the NDU record-keeping system totals approximately UAH 205 mn.

Impact on investorsClearstream opened correspondent account for the NDU.

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



32

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

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

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]

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]

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


33 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]


34 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

http://custody.ba-ca.com

http://www.unicreditgroup.eu


35

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


36

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 · unicredit bank d.d. results for the financial year 2009 7...

Documents