21 February, 200 6, Kyiv

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

2. Basic Facts about VABank • Full name Open Joint stock Company “Vseukrainsky Aktsionerny Bank” • Short name JSCVABank • Founding date July2, 1992 • License№35 of 03.12.2001 • Auditor Deloitte&Touche • Rating among Ukrainian banks* 18largest(by assets) 14largest(by capital) 15largest(credit portfolio) • Moody’s Rating Е+ (financial strength rating) B2/NP (foreign currency deposits) Stableoutlooks ShareholdersDecember 23, 2005 the Bank registered with the NBUits 18th issue of stock, as a result of which its equity grew to 110.6 mln. UAH. CompanyTBIF Financial Services BV purchased 9.55% stake in VABank *According to Ukrainian Banking Association as of 31/12/2005

3. Dynamics of Financial Performance Indicators • Assets and capital of VABank were growing in 2005 much faster than the banking system overall Growth of Capital, mln. UAH. Growth of Assets, mln. UAH +191% +82%

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

5. LEASING

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

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. Interaction of JSC VABank with leasing company-borrower: 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 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. 4

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

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

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