Credit Products

Content 1. Latvia: basic facts 1.1 General data 1.2 Economic performance 1.3 Banking industry 1.4 EU membership 2. Rietumu: credit products

Latvia Basic Facts

Latvia Geopolitical Data Area: 64,600km² Population: 2.23 million FINLAND Area: 64,600km² BALTIC SEA Population: 2.23 million ESTONIA RUSSIA Currency: Latvian Lats 1 EUR = 0.7028 LVL LATVIA Language: Latvian, Russian, English LITHUANIA Ethnic composition: Latvians 57.7% Russians 29.6% Belarussians 4.1% Ukrainians 2.7% Poles 2.5% BELARUS POLAND UKRAINE ROMANIA

Latvia Economic Performance Real GDP: USD 17.2 billion 2010 Real GDP: USD 17.2 billion Unemployment rate: 18% Inflation: -1.4%

21 local banks / 10 foreign banks Latvia Banking Industry 21 local banks / 10 foreign banks Total assets (LVL Mio):

Overall profit / loss of the industry Latvia Banking Industry Overall profit / loss of the industry As of 30.06.2010 (in millions of EUR)* RIETUMU UniCredit Bank Latvijas Krājbanka Aizkraukles Bank Nordea Bank Finland DnB NORD Banka Latvijas Hipotēku un zemes banka Swedbank Citadele banka * TOP 9 by size of assets. Latvian statistics official data.

Benefits of EU membership: Latvia EU Membership EU member state since 1 May 2004 Benefits of EU membership: Participation in the Customs union duties have been cancelled and quantitative restrictions in mutual trade have been lifted Uniform foreign trade policy Joint regional policy for the development of economically depressed regions Freedom of movement (including the labour force) Standardising legislation and social institutes It is anticipated that the EUR will be introduced in Latvia on 1 January 2014

Credit Products

Investment projects and long-term loans Rietumu Credit Products Investment projects and long-term loans The acquisition of fixed assets, expansion, increasing the efficiency of the existing business, and the construction or renovation of property Rietumu Bank offers: loan financing for a period of 3-7 years at a moderate interest rate and with a flexible schedule of repayments

Rietumu Credit Products Short-term loans Efficient solutions for cash flow improvement or for small investments in fixed assets Financing for a period of three months or more Convenient repayment procedure: a flexible schedule, repayment of the main amount at the end of the term or overdraft

Trade finance for import and export operations Rietumu Credit Products Trade finance for import and export operations Against goods in transit and warehoused goods, Under the final buyer’s guarantee, Other personal solutions for increasing the working capital of trade companies. The Bank provides a full range of instruments for supporting foreign trade: Documentary collection, Letters of Credit, Bank guarantees

Rietumu Credit Products Geography Investment projects and long-term loans – in Moscow and the Moscow Region, Saint Petersburg and the Leningrad Region, in the larger cities of the European part of Russia, in Belarus, the Baltic States, and Finland Short-term loans – in Moscow and the Moscow Region, Saint Petersburg and the Leningrad Region, in the larger cities of the European part of Russia, in Belarus, Uzbekistan, Tajikistan, Kazakhstan, Kyrgyzstan and other CIS countries, in the Baltic States Industrial equipment leasing – in the European part of Russia, in Belarus and Ukraine

Rietumu Credit Products Investment projects and long-term loans THE LENINGRAD REGION FINLAND SWEDEN Short-term loans THE BALTIC STATES THE MOSCOW REGION BELARUS Industrial equipment leasing KAZAKHSTAN UKRAINE UZBEKISTAN KYRGYZSTAN TAJIKISTAN

Project and collateral considerations Rietumu Credit Products Project and collateral considerations Each credit project is considered individually, taking into account the business specifics and development plans The amount, period and interest rate for each project are determined individually

General conditions for financing: Rietumu Credit Products General conditions for financing: Thee years of experience in the business sphere which requires credit The availability of a cash flow sufficient to be able to pay back the credit amount and meet interest payments Your own funds in the project which requires credit must be no less than 20% The loan amount fluctuates within a range of 50% to 80% from the agreed cost of the collateral (in the case of leveraged financing) Collateral registration and insurance

Loan or credit line collateral Rietumu Credit Products Loan or credit line collateral Income-producing property in Moscow and the Moscow Region, Saint Petersburg and the Leningrad Region, in other economic centres of the European part of Russia, in Belarus, the Baltic States and other EU countries Additional collateral: The shares and assets of companies, plus personal and corporate guarantees Trade finance: goods in transit or warehoused goods and/or accounts receivable Overdraft: account turnover, personal and corporate guarantees

Rietumu Credit Products NB: When financing investment projects a loan is issued in parts, in accordance with the project implementation schedule. The interest is calculated for the de facto amount received. Benefits may be provided for the loan repayment: Deferred payment of the main amount, Flexible schedule of payments linked to the project implementation terms

Loan with a repayment schedule Rietumu Credit Products Loan with a repayment schedule Goals: expansion of the existing business, and increasing its efficiency, including times when this includes the acquisition of fixed assets or restructuring assets and liabilities Amount: EUR 1 - 20 million (or its equivalent in USD) Rate: from 8% pa. Period: 1-7 years

Loans secured by new and used vessels Rietumu Credit Products Loans secured by new and used vessels Goals: acquisition of new and used vessels and development of maritime business Amount: from EUR 2 million (or its equivalent in USD) Rate: from 7% pa. Period: up to 10 years Experience in managing maritime business, ownership of vessels, stable financial performance and positive borrower’s reputation are important. The share of financing: up to 70% of vessel’s value.

Main types of trade finance: Rietumu Credit Products Main types of trade finance: Acceptance: financing is provided upon request, with payment of the accumulated interested being made monthly; Acceptance-free: financing is provided automatically by crediting the account, with payment of the accumulated interested being made daily Goals: increasing working capital Amount of financing: EUR 0.2 - 5 million (or its equivalent in USD) Rate: from 8% pa. for the provided portion of the limit, 1% p.a. for reserving the unused portion of the limit Period: from three months to a year (with an option to extend)

Main types of trade finance: Rietumu Credit Products Main types of trade finance: Financing against warehoused goods Financing purchases against goods in transit Financing purchases on claims against the final buyer Export factoring

Special conditions for providing financing: Rietumu Credit Products Special conditions for providing financing: The account must show at least three months of activity A transparent commercial activities structure A sufficient level of incoming payments Minimum of one year of experience in selling the relevant commodity type Limit for crediting: 50-70% of the cost of the non-exchange commodity, 70-90% of the cost of the exchange commodity

Rietumu Credit Products Overdraft Goals: increase in working capital Amount: EUR 40 thousand to 2 million (or its equivalent in USD) Rate: from 14% pa. for the financing provided, 2% pa. for reserving the unused portion Period: from three months to a year

Rietumu Credit Products Overdraft Conditions for the provision of overdrafts: The account must show at least nine months of activity A transparent commercial activities structure Incoming payments on the account must amount to a minimum of EUR 500,000 per month Credit limit is determined as being 25% of the business turnover

Proposal for financial and credit companies Rietumu Credit Products NB: Proposal for financial and credit companies If your company needs to (re)finance its credit resources, Rietumu offers individual and competitive terms for refinancing your credit portfolio! Geography: we consider proposals from the EU and CIS countries, as well as from other regions Rate: from 8% pa. Specialisation: financing for leasing and mortgage portfolios, consumer lending portfolios, mini loans without collateral, as well as other financial portfolios Conditions: individual, per transaction

Rietumu Credit Products Leasing Geography of the proposal: Russia, Belarus, Ukraine Loan amount: from USD one million Interest rate: from 9% pa! Period: from five years Goal: financing for leasing transactions Main types of leasing services: Financing for specific leasing transactions (a loan with special terms and conditions) Financing for a large number of transactions within the framework of a general limit and on the same conditions (a framework loan)

Rietumu Credit Products Leasing Financing terms: Positive equity and the company’s profitability Crediting of up to 80% of the cost of the financed leasing facilities The size of the total lease portfolio should be a minimum of USD ten million, on condition that such a volume guarantees a negation of loss The registration of the collateral and insurance taken out on the facility being leased Collateral: Leased facility Rights of claim to lessees

Rietumu Credit Products Industrial leasing Goal: the renovation of fixed assets to enable a profit to be made or to optimise expenses Geography: The European part of Russia, Belarus, Ukraine Amount per project: from USD 100,000 Currency: USD, EUR Rate: appreciation of the facility being leased (the total amount of payments for the facility in relation to its initial value) from 7% pa. The period depends on the leased facility: 3 - 5 years

Rietumu Credit Products Industrial leasing Terms of financing: The positive equity and profitability of the company being sufficient to enable it to meet lease payments Deposit payment of a minimum of 20% of the transaction amount The presentation of financial statements The leased facility must be in demand on the secondary market (for instance, road-building equipment, commercial and passenger vehicles, industrial equipment, railway rolling stock, etc) Collateral: The object of the leasing agreement Guarantees for the associated companies and/or individuals

General financing provision procedure Rietumu Credit Products General financing provision procedure Bank application Standard period for consideration – 2 to 4 weeks Execution of the transaction Providing financing Standard term for making agreements – a week The time required to fulfil the terms for the provision of financing depends upon the client * Our specialists will render the required assistance in the preparation of documents.

A personal approach and an optimum solution for each project!

Rietumu Credit Products Contacts International Crediting Department Dmitry Pavlov, Head of the Department Phone: +371 6720 1564 Fax: +371 6720 1563 E-mail: dpavlov@rietumu.lv Trade Finance Department Natalya Perkhova, Head of Department Phone: +371 6702 5249 Fax: +371 6702 5256 E-mail: nperhova@rietumu.lv

Rietumu Credit Products Contacts Providing loan and leasing resources: Nikita Yakimov Head of the Financial Institutes Group International Crediting Department Phone: +371 6700 5575 Fax: +371 6720 1563 E-mail: nyakimov@rietumu.lv Projects in Russia (Moscow, the Moscow Region, other areas) and the CIS countries: Projects in Belarus and Russia (Saint Petersburg, the Leningrad Region): Anastasia Radionova Credit Project Manager Phone: +371 6702 5253 Fax: +371 6720 1563 E-mail: aradionova@rietumu.lv Yana Rozenberg Credit Project Manager Phone: +371 6720 1562 Fax: +371 6720 1563 E-mail: jrozenberg@rietumu.lv

Rietumu Credit Products Contacts Industrial leasing: Westleasing-M Ltd (Russia) www.westleasingm.ru Dmitry Chereshnev +7 495 662 4032 Westtransinvest Ltd (Belarus) www.wti.by Andrei Orlov +375 17 269 9399 Westleasing Ltd (Ukraine) www.wls.com.ua Dmitry Gurvich +380 44 206 9917

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