20 February 2008
With the advice of the arrangers and after testing the market, the Management of Vozrozhdenie Bank has decided to suspend the marketing of its 5 billion ruble bond. Current market uncertainties proved to be too great to raise sufficient interest at an appropriate price. The bank has no maturing debt and capital market borrowing is less than 10% of our total funds. While there is significant demand from our clients for loans, there is also a limit to the price at which the bank wished to obtain funds at as the higher cost would have to be passed on to these borrowing clients. More than 75% of the bank’s funds are provided by corporate and individual depositors and these balances are growing sufficiently for the bank to continue reasonable growth during the coming year — without access to capital markets at unreasonable prices.