1. Debt and Liquidity Management Agency Public report of the activities for the year 2006 29 th May 2007

2. Public presentation of the ARDAL´s activities for the year 20062 ARDAL´s Details Address:Radlinského 32, 813 19 Bratislava Telephone:+421 2 57262503 Fax:+421 2 52450381 Internet:www.ardal.sk ardal@ardal.sk Gov. Dep.:Ministry of Finance of the Slovak Republic Legal identity:Budgetary organization Reuters Code:DLMA

3. Public presentation of the ARDAL´s activities for the year 20063 Debt and Liquidity Management Agency (ARDAL) Was established under the Act No. 291/2002 Coll. on State Treasury Was established under the Act No. 291/2002 Coll. on State Treasury The Agency is securities trader under the Act No. 566/2001 Coll. on Securities and Investment Services The Agency is securities trader under the Act No. 566/2001 Coll. on Securities and Investment Services

4. Public presentation of the ARDAL´s activities for the year 20064 Scope of ARDAL´S Activities To manage Central Government Debt and Risks in accordance with valid Debt Management Strategy To manage Central Government Debt and Risks in accordance with valid Debt Management Strategy To perform the settlement of securities trades To perform the settlement of securities trades To manage State’s daily liquidity To manage State’s daily liquidity To perform financial operations on the financial market To perform financial operations on the financial market

5. Public presentation of the ARDAL´s activities for the year 20065 Organization Budget for the Year 2006 Binding limits (in ths. SKK) Approved budget for 2006 Adjusted budget as of 31.12.2006 Actual state as of 31.12.2006 Revenues000 Total expenditures 26 049 35 697 35 663 Current expenditures 25 799 29 190 29 189 Capital expenditures 250 6 507 6 474

6. Public presentation of the ARDAL´s activities for the year 20066 Current Expenditures Wages, salaries, service emoluments and other personal perquisites (38,1%) Wages, salaries, service emoluments and other personal perquisites (38,1%) Insurance fees and employers´ contributions to insurance companies and to the National Labour Office (10,1%) Insurance fees and employers´ contributions to insurance companies and to the National Labour Office (10,1%) Goods and other services (51,8%) Goods and other services (51,8%) –of that: IT operation (78,6%)

7. Public presentation of the ARDAL´s activities for the year 20067 Capital Expenditures Software – increase of internal security of ARDAL´s network (2,2%) Software – increase of internal security of ARDAL´s network (2,2%) Hardware – completion of IT and security enhancement (29,8%) Hardware – completion of IT and security enhancement (29,8%) Accounting module implementation (68,0%) Accounting module implementation (68,0%)

8. Public presentation of the ARDAL´s activities for the year 20068 Main Activities of ARDAL in 2006 Organize electronic primary-sales state securities auctions Organize electronic primary-sales state securities auctions Debt management in accordance with approved Debt management strategy Debt management in accordance with approved Debt management strategy Risk management of the State debt Risk management of the State debt Provides smooth state refinancing Provides smooth state refinancing Active management of the state liquidity Active management of the state liquidity Provides special consulting to the Ministry and other state organizations Provides special consulting to the Ministry and other state organizations

9. Public presentation of the ARDAL´s activities for the year 20069 Slovak Government Debt Structure As of 31.12.2006 (in ths. SKK) Treasury Bonds 436 398 373 436 398 373 issued in SKK issued in SKK 349 965 873 issued in foreign currency issued in foreign currency 86 432 500 Treasury Bills 0 Government loans 25 350 873 Refinancing system with ST 151 882 029 Money-market loans 0 Other liabilities 2 072 020 Risk from govern. guarantees 19 921 700 Total liabilities 635 624 995

10. Public presentation of the ARDAL´s activities for the year 200610 State Budget Balance Development for the Years 2003 - 2006

11. Public presentation of the ARDAL´s activities for the year 200611 Treasury Bills 2006 Issue of Treasury Bills to own portfolio Issue Date Maturity Date Face Value 31.5.200630.5.2007 32 bln. Sk 16.8.200615.8.2007 30 bln. Sk Refinancing costs from State Treasury funds – 3,2% p.a.

12. Public presentation of the ARDAL´s activities for the year 200612 TB Issues 1993-2006

13. Public presentation of the ARDAL´s activities for the year 200613 Domestic Treasury Bonds Auctions Results in 2006 In 2006 was accomplished 19 auctions of Treasury Bonds in accordance with auction calendar.

14. Public presentation of the ARDAL´s activities for the year 200614 Results of Treasury Bonds Auctions According to Years

15. Public presentation of the ARDAL´s activities for the year 200615 EUROBOND 2006 Issued according to Strategy Issued according to Strategy Maturity 15 years Maturity 15 years Fixed coupon 4,00% p.a. Fixed coupon 4,00% p.a. Face value 1 bln. EUR Face value 1 bln. EUR Lowest margin to mid ASW - 0,07% Lowest margin to mid ASW - 0,07%

16. Public presentation of the ARDAL´s activities for the year 200616 Treasury Bonds Portfolio Average interest rate of the domestic Treasury Bonds issued in 2006 – 4,06% p.a. Average interest rate of the domestic Treasury Bonds issued in 2006 – 4,06% p.a. Average interest rate of outstanding portfolio as of 31.12.2006 Treasury Bonds denominated in SKK – 4,59% p.a. Treasury Bonds denominated in SKK – 4,59% p.a. Treasury Bonds denominated in EUR – 4,94% p.a. Treasury Bonds denominated in EUR – 4,94% p.a. Total – 4,84% p.a. Total – 4,84% p.a. –compare to 2003 – 6,29% p.a.

17. Public presentation of the ARDAL´s activities for the year 200617 Average Maturity of Treasury Bonds Portfolio

18. Public presentation of the ARDAL´s activities for the year 200618 Duration of Treasury Bonds Portfolio

19. Public presentation of the ARDAL´s activities for the year 200619 Summary 1 774 financial operations 1 774 financial operations Trading with 19 domestic and foreign banks Trading with 19 domestic and foreign banks 19 Treasury Bonds auctions at domestic market 19 Treasury Bonds auctions at domestic market Historically the most successful issuance of Slovak Eurobond Historically the most successful issuance of Slovak Eurobond 1 013 coupon and principal payments to owners 1 013 coupon and principal payments to owners Achievement of targets defined in Debt Management Strategy up to 2006 Achievement of targets defined in Debt Management Strategy up to 2006 The second historically lowest costs of new state debt The second historically lowest costs of new state debt Historically the lowest costs for state debt covering Historically the lowest costs for state debt covering

20. Public presentation of the ARDAL´s activities for the year 200620 Near Future Goals Preparation to EMU accession Preparation to EMU accession Improvement of securities settlement Improvement of securities settlement Introduction of primary dealers system Introduction of primary dealers system Pursue New Debt Management Strategy Targets Pursue New Debt Management Strategy Targets ISDA ISDA

21. Public presentation of the ARDAL´s activities for the year 200621