Change of Subordinated Debt Interest Rates

On 30 December 2010, the Ukrainian central bank regulator, the National Bank of Ukraine, revised the interest rate caps on funds borrowed by banks as subordinated debt. In particular, starting from 1 January 2011 the interest rate cap on funds borrowed in foreign currency (US Dollars) as subordinated debt, shall not be higher than LIBOR (as at the respective date) applicable to twelve-month inter-bank deposits, plus 8 percent per annum (previously it was 5 percent per annum).

As regards the interest rate caps on funds borrowed in the national Ukrainian currency (Hryvnia) or in foreign currency (Euro) as subordinated debt, these have not been changed and remain as follows:

• in Hryvnia, no higher than the discount rate of the National Bank of Ukraine, plus 2.5 percent per annum;