Compensation of the Clients of Česká banka, a.s.

The obligation to compensate depositors of the former Česká banka, a.s. is set forth by item 5, article II of Act No. 16/1998 of the Coll. of Laws, amending and supplementing Act No. 21/1992 of the Coll. of Laws, On Banks, in the wording of subsequent regulations.

Compensation of Česká banka's clients by the Deposit Insurance Fund shall commence on June 6, 1998 at the latest.

According to JUDr. Josef Karlík, Receiver of Česká banka, a.s. and Ing. Pavel Trnka, Secretary of the Deposit Insurance Fund, compensation shall be paid according to the numbers on the applications with the Regional Companies Court, Prague. Under law, a maximum of CZK 4 mil. per client shall be paid out. From this amount, the amount which had been paid out from the means of the Deposit Insurance Fund during the payment started on December 11, 1995, shall be deducted. Compensation shall be paid out by the branches of Investiční a Poštovní banka. Therefore, it is important to check all information posted at the above branches.

A person who, on December 15, 1995, had a claim arising from his/her deposit with Česká banka, a.s., filed this claim for bankruptcy proceedings and had his/her claim acknowledged by the receiver and registered in the list of filed claims, shall have the legal right to supplementary compensation.

Those clients who have not yet filed their claims, can do so by May 5, 1998 at the latest, with the Regional Companies Court, Prague 2, Slezská 9.

The original copies of the deposit certificates to which the compensation shall also apply, should be submitted to Česká banka, a.s., Prague 4, Petra Rezka 12, in exchange for confirmation or sent to this address as an insured letter.

CNB
Prague, April 7, 1998