1. 1 21 February, 2006, Kyiv Financing of Leases International Conference «Banking Sector and Leasing Market Business and State Regulation»

2. 2 n Full nameOpen Joint stock Company “Vseukrainsky Aktsionerny Bank” n Short nameJSC VABank n Founding dateJuly 2, 1992 n License№35 of 03.12.2001 n AuditorDeloitte&Touche Rating among Ukrainian banks* 18 largest (by assets) 14 largest (by capital) 15 largest (credit portfolio) n Moody’s Rating Е+ (financial strength rating) B2/NP (foreign currency deposits) Stable outlooks *According to Ukrainian Banking Association as of 31/12/2005 Basic Facts about VABank Shareholders December 23, 2005 the Bank registered with the NBU its 18 th issue of stock, as a result of which its equity grew to 110.6 mln. UAH. Company TBIF Financial Services BV purchased 9.55% stake in VABank

3. 3 mln. UAH.200320042005 Assets961,71 293,73 000,9 Loans584,2617,61 226,3 Customers’ accounts519,3857,31 306,3 Capital52,5 110,2 Profit4,6368,01615,1 Growth of Assets, mln. UAHGrowth of Capital, mln. UAH. +82%+191% n Assets and capital of VABank were growing in 2005 much faster than the banking system overall Dynamics of Financial Performance Indicators

4. 4 HQ in Kyiv n 65 offices and branches n 1180 staff n Representation office in Budapest (Hungary) n 129 ATMs Operating offices and branches Planned for opening in 2006 Plan for 2006 n 150 offices and branches n subsidiaries in all oblast capitals of Ukraine n 210 ATMs Regional Network of VABank

5. 5 LEASING

6. 6 Financing of Leases JSC VABank has vast experience of financing leasing programs. Within the framework of cooperation with one of the largest leasing companies, in 2005, VABank financed purchase for subsequent leasing of over 100 cars worth of 11,572,700 UAH.

7. 7 Decision made Analysis of borrower-lessor’s creditworthiness Main components: I. Assessment of borrower’s (leasing company’s) financial standing. II. Appraisal of the management team. III. Leasing company’s market position vis-à-vis competition. IV. Security (collateral). V. Sources of loan repayment. Decision Making Process

8. 8 Interaction Pattern Selection of clients : - financial analysis of operations; - due diligence of legal documents and authorities of management team; - client’s reputation appraisal with help of internal security service. Funds on credit line are disbursed in the form of tranches after lessor presents to the bank leasing agreements with lessees and leased assets purchase contracts. Credit line is repaid according to the repayment schedule at the cost of leasing payments receipt under financial leasing agreements. 1 After opening of a credit line, the leasing company approaches lessees in order to find most suitable clients for the implementation of the project. 2 3 4 Interaction of JSC VABank with leasing company-borrower:

9. 9 Lease Enforcement Flow Chart Supplier Lessee Leasing company JSC VABANK 1 2 4 5 3 6

10. 10 Lease Enforcement Outline STEP 1: Closing of lease agreement STEP 2: Signing of leased asset supply contract STEP 3: Filing with the Bank of a loan application; disbursal of funds by the Bank to the lessor’s account STEP 4: Payment for leased asset, shipment and registration, accepting to the balance sheet; execution of insurance policy for the leased asset STEP 5: Provision of collateral STEP 6: Transfer of the leased asset to the lessee

11. 11 Structure of Financing through Leasing  Decisions on financing assets referred to in lines 2-4 are made on a case-by-case basis due to their special purpose nature and limited liquidity.  Financing of cars by JSC VABank: Pricing category of carPrepayment < 25 000 USD15% > 25 000 USD20% AssetsPrepaymentLoan Maturity 1Automobiles15-30%Maximum 5 years 2Highly depreciable special equipment20-30%3-4 years 3Locomotives20%5 years 4Farming equipment20-30%5 years A separate category is made up for cars manufactured in CIS countries, with preferable amount of prepayment equal to 25-30% of the asset value (due to rapid loss of liquidity).

12. 12 In addition to finacing, leasing companies are provided with the full range of insurance services from Insurance company Leader. Insurance

13. 13 JSC VABank First Kyiv Branch, Kyiv, 36, Degtyarevska street. Aleksandr Nezola, Credit and Factoring Department. Tel./fax: (044) 490-06-94 www.vabank.ua CONTACTS Thank you!