OREANDA-NEWS. November 25, 2008. During the current financial crisis Rosevrobank experienced 20% outflow of funds of corporate customers and 12% outflow of funds of private customers, all customers transferred their money to state-owned banks. This is the typical situation happened to Russian privately-owned banks, reported the press-centre of RosEvroBank.

However in spite this outflow RosEvroBank continues to demonstrate strong liquidity (amount of cash + cash equivalents is more than USD 450 million) and good financial standing. Liquidity from 30.06.2008 to 30.09.2008 increased because of work with borrowers (corporate customers), some of the borrowers agreed to prepay loans in advance.

Management of RosEvroBank started to prepare for crisis well in advance and from 30.06.2008 to 30.09.2008 we accumulated significant amount of cash and cash equivalents which now enable RosEvroBank to serve its customers and to further develop its operations.

RosEvroBank did not stop lending to corporate customers in September-November 2008 however volumes of lending were decreased. Net Profit of the Bank for 9 month amounted USD 30 million and we assume Y2008 Net Profit will be around USD 38-40 million.

The Central Bank of the Russian Federation increased limit for Rosevrobank for unsecured lending from RUB 5.2 billion to RUB 7.2 billion. Unsecured loans from the Central Bank have tenor 1 month but these loans are normally extended every month. Also RosEvroBank is eligible to get loans from the Central Bank of Russia which are collateralised by securities (Lombard List). In addition (and if necessary) the Central Bank can refinance loan portfolio of RosEvroBank in the amount up to RUB 1.5 billion.

As to subordinated loans - currently RosEvroBank is registering with the Central Bank USD 38 million subordinated loan from its shareholders (registration will be completed within approx. 1 month), in addition Vnesheconombank (state-owned bank) confirmed its readiness to extend another USD 38 million subordinated loan to RosEvroBank (min tenor - 5 years) once the Central Bank approves subordinated loan from the shareholders. These funds (totally USD 76 million subordinated loan) will be intended to further strengthen equity of RosEvroBank). Currently equity of Rosevrobank is about USD 280 million.

Regarding foreign borrowings - by the end of 2008 RosEvroBank has to repay 1 loan for amount USD 15 million, in 1H2009 RosEvroBank has to repay totally about USD 110 million. Current liquidity of RosEvroBank allows to repay ALL foreign debts.