The CNB’s decision to grant a banking licence to BMS took effect on 6 May 2008

Banka mezinárodní spolupráce, a.s., Praha (International Cooperation Bank)

(hereinafter referred to as “BMS”)

The CNB’s decision to grant a banking licence to BMS took effect on 6 May 2008.

The administrative proceedings to grant a banking licence to BMS commenced on 20 April 2007 with the delivery of the application of První česko-ruská banka, společnost s ručením omezeným (First Czech-Russian Bank, Ltd, Moscow, Russian Federation – hereinafter “PČRB”). PČRB is supervised by the Central Bank of the Russian Federation.

PČRB is the sole founder of BMS. PČRB has applied three times for a banking licence for BMS. The proceedings regarding the first application of February 2004 were terminated by decision of the CNB pursuant to Article 40(4) of Act No. 21/1992 Coll., on Banks, as amended (hereinafter the “Act on Banks”). The second application of April 2005 was refused by the CNB because the applicant had failed to meet all the conditions for the granting of a banking licence as laid down in Article 4(5) of the Act on Banks.

In its third application of April 2007, the applicant submitted all the documents required by Decree No. 90/2006 Coll., stipulating the essential elements of applications and notifications and the minimum amount of funds to be provided by a foreign bank to its branch. It was found in the proceedings that the applicant had satisfied all the conditions for the granting of a banking licence in accordance with the aforementioned Article 4(5) of the Act on Banks. On the basis of this compliance with all the statutory conditions, the CNB issued a positive decision on 17 April 2008 and granted the banking licence to BMS.

Basic information on the BMS:

Share capital: CZK 600,000,000 (paid up in full prior to the issuing of the decision)

Registered address: Prague

Sole shareholder: PČRB (100% of BMS’s shares)

Objects of business:

Article 1(1) of the Act on Banks

a) acceptance of deposits from the public,

b) providing loans,

Article 1(3) of the Act on Banks

a) investing in securities for own account,

b) financial leasing,

c) money transmission services,

d) issuing and administering means of payment, e.g. credit cards and travellers cheques,

e) providing guarantees,

f) opening letters of credit,

g) collecting payments,

k) bureau-de-change activities (purchase of foreign currency),

l) providing banking information,

m) trading for own account or for account of clients in foreign exchange and gold,

o) activities directly associated with the activities listed in the banking licence.

BMS will be supervised by the CNB. The CNB will also exercise consolidated supervision of the relevant consolidated group.