S-10 slide 1 Banking June 2000

S-10 slide 2 Banking International financial authorities have warned that Russian Mafia are looking abroad to invest illegally-acquired funds Bulgarian commercial banks have also told the Finance Ministry of recent contacts by Russian “businessmen” German police report to Bulgarian counterparts that a large Bulgarian commercial bank, Full Security Bank, has been targeted by Russian Mafia for takeover

S-10 slide 3 Banking — cont’d Follow-up investigation by the police reveals –A senior vice president at Full Security Bank has taken three trips to Moscow in the past six months –Two trips were without the knowledge or approval of the bank’s president

S-10 slide 4 Banking — cont’d The International Monetary Fund is in the process of releasing a DM 440 million credit to stimulate commercial bank lending to local enterprise –The IMF states it is pleased with the Currency Board’s success in reducing inflation –The credit, according to the IMF, is based primarily on the recently proven integrity of Bulgaria’s commercial banks