Privredna Banka Beograd Mortgage Loan

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The proposed project consists of a EUR 10 million residential mortgage loan facility to Privredna Banka Belgrade (PBB or the bank). Mortgage lending plays an important part in PBB’s strategy for retail lending, and the loan will support PBB’s lending growth in the sector. The EBRD loan will increase provision of long-term funding available to the bank, allowing PBB to grow its mortgage portfolio on a sustainable basis. PBB will consolidate its experience and know-how in this area through a technical assistance programme associated to the loan. By following EBRD’s List of Minimum Standards for mortgages, PBB is committed to applying best industry practice. PBB is a small to medium bank based in Belgrade with total assets of EUR 108.3 million, equity of EUR 32.5 million, net profit of EUR 2.9 million and market share by total assets 0.73 % as of end December 2006. PBB was founded in 1973. PBB is providing a wide range of products and services, with a specific focus on retail banking and SMEs. As of 15 May 2007, PBB had 12 branches, 9 sub-branches and 14 counters and 285 employees. The proposed project consists of a EUR 10 million residential mortgage loan. EUR 10 million. PBB will need to implement EBRD’s Environmental Guidelines for Residential Mortgage Lending, including adherence to EBRD’s Environmental Exclusion List, compliance with national environmental, health and safety regulations, and submission on an annual basis of environmental, health and safety reports to the Bank. In particular, PBB will be required to ensure that a property survey is conducted for each sub-loan as part of its due diligence. The survey will include consideration of potential site contamination, use/presence of hazardous materials in construction, risk of flooding or seismic activity and compliance with the applicable national environmental, health and safety standards and regulations. Up to EUR 190,000 technical cooperation programme for mortgage lending and other institutional building measures. Mr. Čedo Petrović President of the Executive Board PRIVREDNA BANKA A.D. BEOGRAD Bulevar oslobođenja 4 11000 Belgrade, Serbia Phone:(+381 11) 2641-992 Fax: (+381 11) 265-70-64 mob: (+381 64) 895-5040 E-mail: c.petrovic@pbbad.com web: www.pbbad.com