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The results of the work of the Temporary Administration of NADRA BANK during the eighteenth week

12.06.2009

During four months of the work of the Temporary Administration aimed at improvement of the financial position of NADRA BANK the Bank succeeded in considerable improvement of its financial indicators. Thus, liquid assets of the Bank increased by UAH 398.2 mio, particularly cash balance increased by UAH 73.6 mio, outstanding balance of current account with the NBU increased by UAH 324.6 mio.

The improvement of financial indicators of the Bank allowed it to start realization of comprehensive program of repayment of retail deposits. Thus, since April 21, 2009 the Bank has started partial repayment of deposits to depositors-pensioners. And since June 10, 2009 all retail clients, having deposits blocked in January, 2009 or matured in June, 2009 for the amount of up to UAH 10 thousand, may receive 50 % of deposit amount. The retail clients, having deposits matured in June, 2009 for the amount of UAH 10-50 thousand, may receive 20% of deposit amount. Retail clients may take advantage of these proposals provided for extension of deposit balance for the period of four months and more.

During four months UAH 447.1 mio, including almost UAH 274 mio of interest accrued on deposits, were repaid from current accounts of individuals. Administrative expenses of the Bank decreased by 20% in May, 2009 against February, 2009. During the period from February 10, 2009 to June 10, 2009 indebtedness of corporate clients decreased by more than UAH 140 mio, of which more than UAH 120 mio were repaid at the expense of liquid funds. It became possible due to the proposal for corporate clients of a range of special terms and conditions and programs, which are being constantly developed and updated, including functioning of a special proposal “Effective management of indebtedness”.

There was developed a range of efficient decisions, allowing the clients of NADRA BANK to repay both contractual and overdue indebtedness in time and in full amount, maintain and improve their credit history as well. Thus, a special program was developed for corporate and SME clients. This program provides for possibility to repay overdue indebtedness at the expense of funds of banking deposit (at the expense of the deposit of individual/legal entity, which is the collateral under the loan, or at the expense of deposit of the same legal entity).

There was developed a special proposal for corporate clients to purchase land areas which are pledged under retail loans. This proposal provides for assistance to borrowers in fulfillment of their obligations towards the Bank and to corporate clients in purchasing of real estate on the terms, which are more preferential than the market ones.

On June 10, 2009 NADRA BANK participated in the currency tender held by the NBU for the purpose of satisfaction of the needs of individuals and private entrepreneurs. Foreign currency is applied by them for repayment of principal amounts and accrued interest (including overdue amounts).

Since the introduction of the Temporary Administration groups for acceptance of retail clients’ claims working in the headquarters and regional offices of NADRA BANK considered more than 6,000 claims, which relate to fulfillment of mutual obligations of the Bank towards its depositors and borrowers. According to the results of consideration of claims during the period of the Temporary Administration it was decided to repay more than UAH 34.6 mio to retail depositors having crucial needs in funds.

Last update 12.06.2009