1. Prospects for Securitisation in Russia: Key Consideration Securitisation in Russia and the CIS London, October 2006

2. 2 Contents  Transactions in 2004 - 2006  Securitisable assets  Reasons to securitise  Structure considerations  Problem areas  Looking forward

3. 3 Volumes of transactions in 2004-2006

4. 4 Transactions in 2004-2006

5. 5 In the pipeline

6. 6 ABS:  Car loans  Consumer loans  Credit cards  Leases  SME loans  Future flows MBS:  Residential  Commercial Securitisable assets

7. 7 Reasons to securitise Funding:  New investor base  Repeating transactions  Longer term Capital:  Regulatory capital  Improve returns Risk:  Assets versus cash

8. 8 Structure considerations  Warehouse  Conduit  Term deal  Public versus private  Synthetic transactions  Open versus closed pool

9. 9 Problem areas  Small pools of assets  Assets are not standardised  RUR versus USD assets (hedging)  Centre versus regions  Legislation and tax issues

10. 10 Looking forward  Increase of the amounts  Becoming cheaper  Capital relief importance (Basle II)  Domestic market and development of the regions

11. 11 Contacts Tengiz Kaladze Managing Director International Interbank Funding MDM Bank +7-495-745-9640 (direct tel.) +7-495-797-9507 (tel) +7-495-797-9522 (fax) +7-495-233-0935 (mobile) tkaladze@mdmbank.com

12. 12 MDM Bank Established in 1993 as a Moscow-based bank focused on trading Today, one of the largest privately-owned banking groups in Russia by assets (Year-end 2005: USD5.6 bn ), capital (YE 2005: USD886 mn) and net profit (YE 2005: USD134 mn) Owned by two Russian entrepreneurs, Andrey Melnichenko (one of the Group’s original founders) and Sergey Popov, his long-standing business partner Three core business areas: corporate banking, investment banking and retail banking Business is based on financial intermediation between non-related parties: total related party exposure is capped at 10% of assets MDM has one of the highest credit ratings among Russian privately-owned banking groups from Moody’s (Ba2), Fitch (BB-) and Standard & Poor’s (B+; positive outlook) The only Russian financial institution with a corporate governance rating from Standard & Poor’s; the rating was increased to CGS-6.0 in December 2005 Received numerous awards from Euromoney, Emerging Markets, Global Finance and The Banker in 2003-2005; Global Finance also named MDM Bank the Best Bank in Russia in four categories: Best Foreign Exchange Bank Best Domestic Eurobond Arranger Best Domestic Mergers and Acquisitions Arranger Best Bank in Corporate Governance