1. Belarusian Currency and Stock Exchange Activity Report 2006

2. MAIN ACTIVITY. TECHNOLOGIES AND RESOURCE BASE The increase of the authorized capital by changing the par value from BYR 130 to BYR 160. As of January 1, 2007 the authorized capital amounted to USD 3.06 mln (BYR 6.55 bln). A new Charter of the BCSE was adopted to meet the requirements of the Law “On economic companies” that came into force in 2006. The change of organization structure aimed at increasing the effectiveness the BCSE's activity Introduction of the BCSE Development Strategy for 2007-2011

3. RESULTS OF 2006. THE DEVELOPMENT OF TRADE AND SETTLEMENT TECHNOLOGIES CURENCY MARKET Introduction of new trade and settlement complex based on modern on-line systems technologies and providing a to wide range of functional facilities Stepwise realization of the price policy program aimed at reducing trade participants’ expenses. Exchange fees for all quoted currencies were lowered twice within 2006 FUTURES MARKET Transactions with a new instrument such as futures on the GLTB variable interest rate The development of legal base for the futures market, the formation of favourable tax policy, and the creation of standards for accounting policy. In 2006, the list of measures aimed at promoting the appeal of this segment was submitted for the Securities and Lottery Council's consideration.

4. RESULTS OF 2006. THE DEVELOPMENT OF TRADE AND SETTLEMENT TECHNOLOGIES STOCK MARKET Updating the securities trade system in the directions of interface development and the enhancement of analytical and service functions Improving listing procedures in terms of information disclosure and liberalization of securities admission to trades The development of new local standard acts aimed at creating a general unified legal base for all kinds of securities, as well as widening the range and kinds of operations Defining and testing a new for Belarusian market class of securities such as bank mortgage bonds Joint efforts together with the Ministry of Finance to abolish 100% reservation of monetary funds for primary government securities distribution purposes and to realize partial reservation mechanisms Cooperation with the National Bank in developing the auction trade methods

5. THE BCSE ACTIVITY TOTALS Total trade volume in 2006 – USD 13.28 bln The increase to 2005 (in USD) – 14.2 %

6. TRENDS AND MAIN EVENTS. THE CURRENCY MARKET. The exchange currency market total turnover – USD 10.01 bln The increase to 2005 (in USD) – 37.4 % YEAR USDEURRUB Other currencies Total USDmln EUR mln USD mln RUBmlnUSDmlnUSDmlnUSDmln 20054 760.4542.2673.351 660.71 824.721.17 279.5 20066 593.7745.2940.666 420.92 454.416.010004.7

7. TRENDS AND MAIN EVENTS. THE GOVERNMENT SECURITIES MARKET. Total volume of operations – USD 3.09 bln

8. TRENDS AND MAIN EVENTS. THE GOVERNMENT SECURITIES MARKET. PRIMARY DISTRIBUTION OF GOVERNMENT SECURITIES  Number of participants – 29 (including 24 banks)  275 auctions – (45 - primary distribution and 230 – additional distribution of government securities) of government securities)  Actual distribution – USD 656.8 mln  The increase of actual distributions volumes – 34.1 % in BYR, or 34.6 % in USD equivalent or 34.6 % in USD equivalent  Distribution volume at par value – BYR 1 525.213 bln  The increase of the nominal distribution volume – 31.6 % SECONDARY CIRCULATION OF GOVERNMENT SECURITIES  Secondary market total volume – USD 2.43 bln  Number of participants – 33 (including 24 banks)

9. TRENDS AND MAIN EVENTS. THE NATIONAL BANK SECURITIES MARKET. Total market volume - USD 186.99 mln The increase to 2005 (in USD) – 50 % «All against all» REPO operations - USD 9.2 mln «Before redemption» transactions – USD 177.76 mln Number of participants - 17

10. TRENDS AND MAIN EVENTS. INDEX OF GS AND SNB RB MARKET IN 2006 GS and SNB RB market index increase to the beginning of the year – 5.18 percentage items

11. TRENDS AND MAIN EVENTS. THE CORPORATE SECURITIES MARKET Equities  Total trade volume in 2006 – USD 0.28 mln  Number of participants - 15 (6 banks and 9 broker and dealer companies)  Privatization transactions of State Property Fund – BYR 21.5 mln Number of companies whose securities were admitted to trades, as of January 1, 2007 Quotation ListOut-of-list securitiesTotal А IА IIB 1288340152 Number of listed companies, whose securities were traded 11 Bonds  Total trade volume in 2006 – USD 1.5 mln  Number of participants - 6  «All against all» REPO operations volume – USD 0.34 mln  «Continuous double auction» operations volume - USD 1.15 mln

12. TRENDS AND MAIN EVENTS. THE OTC SECURITIES MARKET– purchase and sale of equities of open-type joint-stock companies  Total volume of purchase and sale operations in the OTC in 2006 – BYR 34.7 bln, the increase to 2005 - 27%, or USD 1.43 mln. The share of the OTC market segment in the total turnover – 98.3% The share of the OTC market segment in the total turnover – 98.3%  Number of enterprises equities of which were traded in the OTC market - 137  Number of registered transactions – 3 029  Number of participants – 38 Total volume of local market of JSC equities (purchase and sale transactions) including all its components – BYR 35.3 bln. Number of traded enterprises totalled. The following branches of economy provided the maximum volume of operations:  Finance, credit, insurance, pensions  Industry of building materials  Light industry Since 2006, the BCSE has been empowered to register all kinds of JSC securities transactions, carried out in the OTC market

13. TRENDS AND MAIN EVENTS. THE OTC SECURITIES MARKET – registration totals Kind of operation Equities of close-type JSC Equities of open-type JSC Bonds of legal entities Number of transactio ns Number of securities, mln Volume, BYR mln Number of transacti ons Number of securities, BYR mln Volume, BYR mln Number of transactio ns Number of securities, mln Volume, BYR mln Purchase and sale 1479 317.8 880283029 402.0 34700.5 8938 4715.2 Donation53 23.8 344.37 672 3.23.23.23.2 5132.08 --- Release-money1480 0.31 47 875.1 299757.1 --- Equities deposition into the capital 1 10.7 2787.1 5 216.8 176166.6 --- Passing of property according to the marriage agreement 18 8.24 ------ Swap2 2.62.62.62.6 161.98 3 3.63.63.63.6 2021.9 --- Allocation120 0.80.80.80.8------ Free assignment ---13702337,02--- Total1538 354.9 91330.83757150,1517815,18938 4715.2

14. TRENDS AND MAIN EVENTS. THE FUTURES MARKET Total number of futures transactions in 2006 - 30 Futures market turnover – USD 1.42 mln, The increase to 2005 (in USD) – 1675 % Number of participants in 2006 - 6 Number of circulated futures series - 16

15. INFORMATION AND ANALYTICAL ACTIVITY, MASS-MEDIA AND PUBLIC RELATION, INTERNATIONAL COOPERATION. MAIN EVENTS International cooperation  membership in the International Association of Stock Exchanges of CIS countries, cooperation between the BCSE and leading Exchanges of CIS countries and Europe  Joining the FEAS (Federation of Euro-Asian Stock Exchanges) Information system development: 1. Information System “Stock Market" www.stock.bcse.by: www.stock.bcse.by  Address change of soft-and hardware base  Creation of new part named “A letter to the specialist”, etc.  System update to suit new standard of information disclosure 2. Corporate website of the BCSE www.bcse.by: www.bcse.by  New parts for disclosing trade totals, including archives  Introduction of market price archive disclosure upon GS and SNB RB trade totals  Update of the on-line mode Mass-media:  organizing and running seminars and conferencies  publications about the BCSE activity  cooperation between the BCSE and educational institutions of Belarus  cooperation between the BCSE and information agencies (REUTERS, Bloomberg, Echo-Press, AFN and others)

16. TRENDS OF DEVELOPMENT. THE CURRENCY MARKET Development of a “fixing” trade mode aimed at favouring work conditions for banks and realization of the rate policy of the National Bank Joint work with the National Bank on the development of the legal base that regulates trade rules stipulating introduction of new trade mechanisms («double auction» and «call transactions») and settlement conditions Soft- and hardware realization of new rules for transactions in foreign currency, proving additional trade and settlement modes Updating own legal base regulating mechanisms of concluding and execution of transactions in foreign currency

17. TRENDS OF DEVELOPMENT. THE STOCK MARKET Enhancement of service functions of the securities trade system and the increase of its capacity Improvement of admission procedures for securities circulation and distribution at the BCSE, development of the software serving these processes Creation of favourable conditions for state-own shares holdings sale Approval and introduction of the soft- and hardware realization of new uniform Rules for conducting securities transactions in the BCSE Development of mechanisms for government securities primary distributions carried out by the Ministry of Finance Improvement of auction trade methods providing a wider range of operations carried out by the National Bank in the securities secondary market Organization of distribution and circulation of new instruments at the BCSE

18. TRENDS OF DEVELOPMENT. THE FUTURES MARKET Further range extension of financial instruments circulated in the futures market Methodological background for delivery futures, world currencies cross- rates futures, interest rates and government securities market indices futures introduction Joint work together with interested authorities aimed at improving the legal base regulating transactions rules in the futures market. Development of new approaches to guarantee system structure directed at lowering the price of transaction settlement Improvement of futures instruments trade mechanisms and updating the soft-and hardware complex

19. TRENDS OF DEVELOPMENT. THE CLEARING AND DEPOSITORY ACTIVITY Technological background to meet legislative requirements to extend the functions of the Republican Securities Central Depository and introduction of a new and more effective clearing and settlement model Technological cooperation between structure elements of the clearing and settlement system in a real time mode using cryptographic information protection means and an electronic documentation Methodological providing of “delivery against payment” OTC operations on the base the BCSE depository Clearing and settlement complex adjustment to new instruments introduction, to a wider range of operations, and to new auction trade methods in the stock market, to be realized in 2007 Development of new approaches directed at complex servicing issuers and trade participants

20. TRENDS OF DEVELOPMENT. INFORMATION AND ANALYTICAL ACTIVITY The technical base update and the functional enhancement of the BEQAS system aimed at increasing its speed and reliability, and applying the securities quotation mechanism that corresponds to the standards of OTC electronic systems functioning Development of virtual consultations possibilities based on Internet web- sites, concerning problems on financial market activity The BCSE Internet system soft-and hardware base updating, database structure optimization aimed at increasing its speed, security and reliability, as well as introducing technologies that meet modern standards Widening the range of analytical services supported by the development of indices system reflecting the financial market processes that allows to compare certain elements and estimate its future development

21. TRENDS OF DEVELOPMENT. SOFT-AND HARDWARE INFRASTRUCTURE The development of mechanisms of remote access to trades using both the closed corporate net of the BCSE and the Internet Improvement of service functions of trade participants` and their clients` workstations Introduction of cryptographic protection means and an electronic documentation system Updating the electronic trade system and clearing and settlement system in the stock and futures market Software development for automation of the BCSE Internet resources and the BEQAS system modification processes Program development for statistics enumeration, ranging and analysis upon the trade totals and the information provided by issuers and trade participants The whole hardware complex update in 2007 will provide the reliability of all soft- and hardware means of the BCSE, contributing to:

22. TRENDS OF DEVELOPMENT. NEW MARKETS Such new segment of the organized market as credit resources market is planned to be formed in 2007, starting with the development of the local legal base Main advantages: Developing mechanisms for short-term distribution of temporary free floats and organization of deposit and credit auctions to attract necessary funds on a competitive basis Promoting interbank credit market development in terms of simplifying procedures for funds redistribution between banks with surplus resources and deficient ones. Contributing to the development of new mechanisms for settlement risk management in the organized financial market, maintaining the liquidity of clearing participants by introducing credit procedures