Ongoing Proceedings

Bankruptcy proceedings over Privredna banka a.d. Novi Sad were opened by the decision of the Commercial Court of Novi Sad dated 10.10.2001. All reported claims of creditors were examined at the hearings held in 2002 and payout grades were assigned to the creditors. Receivables of the Republic of Serbia as a creditor of first payout grade amount to ca EUR 25 milion. Payout of creditors was performed on 28.09.2004, by paying out all creditors of first payout grade, phzsical persons, as well as Republic of Serbia to which EUR 2.5 million were paid. After payment upon the decision on main compounding dated 11.04.2005, was made, bankruptcy panel approved subsequent payment amounting to RSD 55 million to the Republic of Serbia, being the only remaining creditor from the first payout grade.

During 2006 Privredna banka a.d. Novi Sad u stečaju concluded Sales and Purchase Agreement with the Republic of Serbia, by which the office building in Novi Sad, of 2.787 m2 for purchase price of ca EUR 3 million in RSD counter-value was transferred to the ownershio of the Republic of Serbia. This real estate was sold with a right of mortgage in favor of the company “Futura Investment&Finance“.

This led to legal action against Privredna Banka a.d. Novi Sad in bankruptcy and the Republic of Serbia, represented by the Solicitor General’s Office, which is still ongoing. The lawsuit is filed by an individual, who aims to prove to be legal successor of the company “Futura Investment&Finance“, which is erased from the Public Registry of Lichtenstein. Funds for mortgage creditor in the amount of RSD 236 million in the Republic of Serbia budget were provisioned, in accordance with the Conclusion of the Government dated 27.06.2006. The close of the bankruptcy proceedings instituted over Privredna Banka a.d. Novi Sad will depend on the outcome of this lawsuit.

Beogradska banka a.d. Beograd, in bankruptcy

Address:Knez Mihailova 2

Tel: +381 11 3281-792

Agency’s trustee: LJubinka Lovčević

Bankruptcy proceedings over Beogradska banka a.d. Beograd were instituted by the decision of the Commercial Court of Belgrade IV St 16/2002 dated 03.01.2002.

1.302 claims were registered by bankruptcy creditors during bankruptcy proceedings over Beogradska banka a.d. Beograd. Sincetheinstitutionofbankruptcyoverthisbankfive hearings for examination of creditors’ claims have been held, at which 1.258 claims were examined.

A total ofregistered claims towards Beogradska banka a.d. Beograd in bankruptcy amounts to EUR 3.28 billion. Claims amounting to EUR 137.61 million have been established at the hearings held so far, which is with accrued interest EUR 195.92million as at 31.12.2009. Claims amounting to EUR 2.5 billion are refuted.

Beogradska banka paid 100%of established claims of the first payout gradein the amount of ca RSD 2.0 million.

Receivables upon complaints for establishing, which were filed by the creditors against Beogradska banka a.d. Beograd in bankruptcy amount to EUR 145.11 million, and with pertaining interest to EUR 187.69 millionas at 31.12.2009.

Bankruptcy administrator has not stated its opinion regarding 43 registeredreceivables, which mainly relate to creditors’ claimsarisen from operations of the agencies Cyprus and Newyork, whose total net amount, without interest as at 31.12.2009, is caEUR 600 million. According to preliminaryopinion, receivables amounting to EUR 302 million of the said amount could be recognized.

National Bank of Serbia has a share of 51 %, Banque Franco Yougoslavein liquidation 11% and Westacre Investments Inc.9 % in total claims of creditors of Beogradska Banka a.d. Beograd u stečaju.

Since certain liabilities of Beogradska banka a.d. Beograd could be settled as well as that court proceedings upon complaints for establishment of receivables could be ended during the following period, and depending on close of the liquidation proceedings for agency Newyork, share of 10 largest creditors of Beogradska banka a.d. Beograd in bankruptcy is subject to changes.

Fromthemomentofinstitutionofthebankruptcyproceedingsuntil 31.12.2009, Beogradska banka a.d. Beograd u stečaju generatedan inflowof fundsbased on dividendsand saleof equity holdings in other legal entitiestotally amounting to RSD 182.2 millionand EUR 40.9 thousand.

Theimmovablesoftotalarea 906.61 m2 worthRSD 53 millionweresoldduringthebankruptcyproceedingsover Beogradska banka.

Asat 31.12.2009 Beogradska banka a.d. Beograd in bankrupcy owned the following real estates:office premises in „Palata Albanija“ of area 3.752.36 m2 and 1.882.32m2 in Sremska Str 5. 2.249.54 m2 were leased.

Obstacles for close of the bankruptcy proceedingsover Beogradska banka:

- There are still 173 ongoing lawsuits in which creditors claim ca EUR 200 million with accrued interest;

- Bankruptcy proceedings depend on close of the liquidation proceedings over the bank’s agencies in Cuprus and the USAand liquidation of banks in mixed ownership, BFY and AY;

- Theydependoncloseof the bankruptcy proceedings over the banks which are debtors of Beogradska banka a.d. Beograd in bankruptcy, first of all Beobankaand Investbanka, as well as on close of privatization and bankruptcy proceedings over legal entities – Bank’s debtors.

Investbanka a.d. Beograd in bankruptcy

Address:Sremska 3-5

Tel:+381 11 3281-743

Agency’s trustee:Gordana Dinić

Bankruptcyproceeeingsover Investbanka a.d. Beograd wereinstitutedby the decision of the Commercial Court of Bellgrade IV St 10/2002 dated 03.01.2002.

Bankruptcy administrator has stated its opinion on 5.273 claims out of 5.321 totally reported, at seven hearings held so far. Outside scheduled hearings Commercial Court of Belgrade made decisions on 36 reported claims. In this way totally 5.309 registered claims were resolved.

There are still 11 registered claims remaining to be resolved, of which the most important in terms of volume and amount are the claims reported by Development Fund of the RoS, National Bank of Serbia, Beogradska banka a.d. Beograd, u stečaju, which relates to the agencies Newyork and Cyprus. Out of hearings bankruptcy administrator stated its opinion regarding 36 claims and decisions on 31 excluding claims were made at hearings and outside scheduled hearings.

Among largest creditors of Investbanka a.d. Beograd, in bankruptcy are: Beogradska banka a.d. Beograd, in bankruptcy, with a share of 76%, National Bank of Serbia with a share of 11% and Ministry of finance with 2 % in total claims.

Based on 17 Decisions on main compounding of the bankruptcy estate, creditors of the first payout grade were fully settled (those with receivables based on payment operations of citizens and RSD savings), and 100% of principal debt of the established claims on the basis of old foreign currency savings of citizens, totally amounting to EUR 58million. Accrued interest in the amount of EUR 6.9 million remained to be settled. Settlement of the creditors of the first payout grade is expected to be ended by the end of 2010.

A total of established claims for creditors of the second payout grade amount to ca EUR 50.0 million.

A total of refuted claims amounts to ca EUR 357.0 million. There are still 10 ongoing lawsuits regarding refuted claims. Bankruptcy administrator has not presented its opinion on 36 registered claims.

56.048.20 m2 of office premises for a total price of RSD 2.2 billion and EUR 8.5 million were sold as of the institution of the bankruptcy proceedings. Besides, through compensation with the Republic of Serbia four buildings were sold at the price of EUR 14.7 million.

An inflow of assets amounting to RSD 358 million was generated through sale of fixed assets, shares, equity holdings, paintings and vehicles.

The bank has mainly leased the unsold office premises and it has generated an inflow of RSD 519 million from these activities so far.

Currently, it is not posible to estimate a period necessary for close of the bankruptcy proceedings for the following reasons:

- uncertaintyof recoveryfrom enterprises whose privatizationhas not been finished yetor has not even started;

- uncertaintyofrecoveryfrom the Bank’s largest debtors, and in connection withlong-lastingand difficult lawsuitswhich are still in progress and in which the claims are secured through mortgages;

- uncertaintyofsuccesfulsaleof the remaining real estates of the Bank, since these are mainly non-booked buildings, on inattractive locations or buildings in a bad condition;

- uncertainsuccessofsaleofthe Bank’srealestateinthe Republicof Slovenia (execution for this property is in progress, upon judgementfrom 1995) and forfive office premisesin the Republic of Croatiawith the total areaof ca. 1.250 m2, on which the Republic of Croatiaregistered ownership with nolegal basis, and for which the lawsuit is still in progress;

- 20 ongoing lawsuits upon refuted claims from hearings held so far;

- numberofactivelawsuits, totally 61, in which the Bank is a plaintiff, is also significant both in terms of required amount and diversity of litigated basis;

- especiallyuncertaintimeperiodisrequiredforfurtherpresentationofthebankruptcyadministrator’sopinionsregarding remainingregistered claims, since they are in connection with Beogradska banka, Development Fund of RoS and National Bank of Serbiaand are still being reconciled, ot it is irrational to present opinion on them, because it would result in new lawsuits, and they cannot be reconciled before settlement of foreign currency debt with the National Bank of Serbia and Republic of Serbia.

Jugobanka a.d. Beograd in bankruptcy

Address:Kralja Petra 19

Tel: +381 11 2637-800

Agency’s trustee:Rada Divac

BankruptcyproceedingsoverJugobankaa.d. Beograd were instituted by the decision of Commercial Court of Belgrade IV St 22/2002 dated 03.01.2002.

From the announcement on institution of bankruptcy proceedings, 3.458 claims of domestic and foreign creditors were reported to Jugobanka a.d. Beograd, totally amounting to ca EUR 2 billion. 3.201 claims were reported within the statury term and 257 claims were not reported within the prescribed period.

At seven examination hearings, previously held before the Commercial Court of Belgrade, bankruptcy administrator presented its opinion regarding 3.438 reported claims totally amounting to EUR 1.8 billion. Bankruptcy administrator stated its opinion in full for 3.428 claims, partially for 10 claims, and for 20 claims it has not stated its opinion.

Bankruptcy administrator has not stated its opinion on registered claims in the amount of EUR 264 million. These claims are mainly those reported by the National Bank of Serbia based on Paris and London Clubs of creditors and relate to the territory of Kosovo and Metohija, as well as the reported claims from the operations of Jugobanka Agency New York.

Ofatotalof 3.458 registeredclaims, those based on main debt and interest accrued by 31.12.2009 were recognized, totally amounting toEUR 114.7million, included claims reported by creditorsofthe firstpayout grade. In the first half of 2008 three secured claims have been recognized by final and irrevocable court decisions.

The largest creditors of Jugobanka a.d. Beograd, in bankruptcy are: Ministry of finance of the RoS with a share of 32% in total claims, National Bank of Serbia with a share of 31% and Komercijalna banka a.d. Beograd with 5 % in total claims. Shares of the ten largest creditors are subject to changes, due to the fact that the lawsuits with high amounts of refuted claims are still in progress.

Firstpayoutgradeofcreditorswassettled 100% by the beginning of 2008 in relation to claims which have been established with final and irrevocable court decisions. These claims included main debt and accrued interest amounting to ca EUR 39.1 millionand RSD 228.4 million.One secured creditor has also been settled in the amount of RSD 55.0million.

The liabilities towards creditors of the second payout grade, recognized by final and irrevocable court decisions, amount with accrued interest to ca EUR 72.8 million as at 31.12.2009. However, there are still ongoing lawsuits based on actions filed for establishing of reported claims in the amount of ca EUR 390 million.

Of 117 real estates which the Bank had at the beginning of the bankruptcy, 84 estates with the total area of 30.925,62 m² have been sold so far, totally amounting to RSD 2.4 billion.

Currently it is not possible to envisage precisely when the bankruptcy proceedings over the Bank could be completed, for the following reasons:

- Regarding claims refuted at the hearings previously held before the Commercial Court of Belgrade, foreign and domestic creditors initiated lawsuits and there are currently 22ongoing lawsuits worth ca. EUR 387.5million,oh which the largest litigated amount is that ofMytilineus Holdings s.a. Athensin the amount ofEUR 32 million of debt principal, and more than EUR 40 millionwith accrued interest,which requires a certain provisioning of funds for payment of some creditors from the second payout grade of creditors in case of negative outcome of these disputes;

- Course and efficiency of development of the separate bankruptcy proceedings over the Agency New York of Jugobanka; After the settlement completed in2009, the institution of the bankruptcy proceedings over this organizational part of the Bank is pending. Theclaimsregisteredbycreditorsofthisorganizationalpartbefore the Commercial Court of Belgradecannot be taken into consideration, until registration of claims after the institution of proceedings in the USA is enabled. It is rather high amount of claims worthEUR 75.6 million,which were reported by 20 creditors;

- Regulation of relations regarding claims reported by the banks – former members of the Jugobanka system and legal entities with head offices registered in the territories of former republics of the SFRY;

- Regulation of debtor-creditor relations regarding important claims from legal entities from the province of Kosovo and Metohija;

- The Bank is not in a position to influence significantly collection of claims from business entities which undergo restructuring (9) and privatization by public tender (24) and public auction (7), which depends on dynamics and efficiency of progress of these processes and in accordance with application of legal regulations treating this area;

- Large number of lawsuits against individuals – Bank’s debtors (ca. 2.000);

- There is large number of ongoing lawsuits against Bank's debtors before different courts in the Republic of Serbia. The recovery shall depend on the outcome of these lawsuits and level of debtors' liquidity;

- Regulation of the status of real estates owned by the Bank in former republics of the SFRY, especially in Croatia, which transferred these immovable properties by means of legal regulations to its ownership, or they have been sold and purchased, so that they are now owned by other legal entities;

- Bankfiled actions regarding claimsin theRepublicof Croatia amounting to almost caEUR 200 million, i.e: claims fromSlatinskabanka (EUR 17 mil.), for real estates in whichformer main branches in Croatia were situated (ca. EUR 70 mil.), on the basis of claims from debtors (EUR 90 mil.) and on the basisof the Paris clubof creditors (EUR 23 mil.).

Beobanka a.d. Beograd u stečaju

Address:Beograd, Carice Milice 2

Tel: +381 11 2620-853

Agency’s trustee: Katarina Krstić

Bankruptcy proceedings over Beobanka a.d Beograd were instituted by the decision of Commercial Court of Belgrade IV St 4/2002 dated 03.01.2002.

From the institution of the bankruptcy proceedings, 3.697 claims of domestic and foreign creitors were reported to Beobanka a.d. Beograd u stečaju, of which number 2.865 claims were reported within the prescribed period and 832 reported claims were late.

By successive payments until the beginning of 2008, Beobanka a.d. Beograd, u stečaju settled in full its liabilities towards the Republic of Serbia as creditor of the first payout grade, i.e. on the basis of old foreign currency savings of citizens in the amount of EUR 90.946.432,31 and on the basis of payment operations of citizens in the amount of RSD 934.768.646. Claims of citizens belonging to the first payout grade are settled as well.

In the first half of 2009 Beobanka started first partiall payment from the bankruptcy estate of Beobanka for the purpose of settlement of creditors of the second payout grade in the amount of 14% of recognized claims. Principal debt with interest accrued until 31.03.2009 was paid to the creditors, amounting to RSD 2.712.295.279,00.

Further payment to the creditors shall be made upon establishment of the bankruptcy estate. The further partial compounding to the creditors of the second payout grade is planned to occur in the first half of 2011.

From the institution of bankruptcy proceedings over Beobanka to 31.12.2009, the bankruptcy estate in the amount of RSD 15.9 billion was encashed, of which RSD 10.9 billion through recovery of claims, RSD 3.52 billion through sale of real estates and stakes, on the basis of lease RSD 545 million, through term depositing of the bankruptcy estate (interest revenues) RSD 807 million, RSD 139 million through refunding of lease costs and other revenues.

Among largest creditors of Beobanka a.d Beograd, u stečaju are: Beogradska banka a.d. Beograd, u stečaju, with a share of 50%, National Bank of Serbia with a share of 19 % and Ministry of finance with a share of 17% in total claims.

Of totally 141 real estates owned by the Bank on the date of institution of the bankruptcy proceedings 129 estates were sold until 31.12.2009, with the total area of 33.173,09 m2 and on this basis RSD 1.9 billion were generated. Besides, through compensation with the Republic of Serbia three buildings were transferred to the state on the basis of old foreign currency savings of citizens, i.e: building at 16 Zeleni Venac Str., with area of 2.980 m2 worth EUR 3.923.142 and 18 Zeleni venac Str., with area of 8.301 m2 worth EUR 9.209.152.

Reasons for the fact that the bankruptcy proceedings over Beobanka a.d. are still in progress and that in this moment it cannot be foreseen when it shall be completed are the following:

- The Bank is not in a position to significantly influence the recovery of claims from business entities which undergo restructuring or privatization, which depends on dynamics and efficiency of these processes, and in accordance with application of legal regulations treating this field. There are a lot of ongoing lawsuits against Bank’s debtors before different courts in the Republic of Serbia and recovery of claims will depend on their outcome and a level of liquidity of debtors. The level of recovery shall also be influenced by the outcome of the bankruptcy proceedings over the Bank’s debtors, to which the Bank reported claims timely.

The Bank undertook all necessary measures during the bankruptcy proceedings regarding recovery of claims from individuals and legal entities, including the measures of forced recovery. It is necessary to emphasize that the Bank was significantly limited in the process of recovery of claims from the legal entities from the aspect of possibility of recovery, since it was not enabled to apply the forced measures of recovery from business entities which are under restructuring or in the processes of tender and auction sales, which in accordance with legal regulations treating privatization. The Bank faces the same problem with recovery of claims from legal entities under which, in the meantime, were instituted bankruptcy proceedings.

The Bank faces the problem of irregular address data in recovery from individuals, which is further problem in realization of recovery.

Valjevska banka a.d. Valjevo, in bankruptcy

Address:Valjevo,Vuka Karadžića 5

Tel: +381 14 221-287

Agency’s trustee: Jasmina Marjanović

Liquidation proceedings over Valjevska banka a.d. Valjevo were instituted by the decision of Commercial Court of Valjevo dated 10.01.2002. godine, and bankruptcy proceedings over this bank were instituted by the decision of the same court dated 24.11.2004 upon proposal of the Deposit Insurance Agency in the capacity of liquidation administrator.

Bankruptcy administrator presented its opinion at four previous examination hearings on justifiability of all 827 reported claims of creditors totally amounting to EUR 20 million. A total of EUR 11 million of claims were recognized.

During 2008, liabilities towards the Republic of Serbia as creditor of the first payout grade in the amount of EUR 2.851.721,00 were settled.

One lawsuit upon action for establishing of liability filed by Agrobanka in the amount of EUR 10 million is in progress. Finalization of the proceedings is expected upon completion of this lawsuit.

JIK banka a.d. Beograd, in bankruptcy

Address:Carice Milice 2

Tel: +381 11 2620-853

Agency’s trustee:Katarina Krsti'

Bankruptcy proceedings over JIK banka were instituted by the decision of Commercial Court of Belgrade dated 07.04.2005 and prior to that liquidation proceedings were instituted over this bank by the decision of the same court of 26.07.2001.godine, and Agency was appointed as liquidation administrator by the decision of this court dated 11.03.2004.

The established claims of JIK banka a.d. Beograd, in bankruptcy, towards the Republic odf Serbia as creditor of the first payout grade on the basis of the old foreign currency savings of citizens amount to EUR 22.6 million with accrued interest as at 31.12.2009. On this basis and by 31.12.2008, EUR 2.5 million, i.e. 12 % of the established claims were transferred to the Republic of Serbia.

JIK banka a.d. Beograd in bankruptcy does not have sufficient assets to settle the Republic of Serbia as largest creditor. The problem for close of the proceedings is recovery of claims from legal entities, as well as unresolved ownership and legal status of the immovables.

JIK banka in bankruptcy owns 8 real estates. Especially important is the building in Belgrade, 34 Terazije Str., which is the subject of a lawsuit with the related bank, Izvozno kreditna banka in bankruptcy, the resolution of which is expected during this year, which would be followed by the sale of the building. In addition to this, incomes are also expected from the sale of facilities – business complex of the company “Takovo” whose sale is performed in the executive court procedure which is under competence of the Municipal Court of Čačak.

It is to emphasize that resolution of debtor-creditor relation with the Republic Directorate for Commodity Reserves, which ows USD 15 million to this bank, is expected to occur during June 2010. If previous consent of the Republic Solicitor General’s Office, i.e. Republic of Serbia – Ministry of finance is obtained, the liabilities of JIK Banka towards the Republic of Serbia would be reduced by the transfer of claims which JIK Banka has towards the Republic Directorate for Commodity Reserves to the Republic of Serbia.

Since this Bank does not have sufficent assets for settlement of creditors of the first payout grade in case the decision on close of the proceedings over Slavija banka becomes final and irrevocable, the same court practice would apply and finalization of the proceedings would be proposed by transferring entire assets to the Republic of Serbia as creditor of the first payout grade.

Astra banka a.d Beograd in bankruptcy

Address:Kralja Petra 60

Tel: +381 11 3282-932

Agency’s trustee:Vasilj Vasiljević

By the Ruling of the Commercial Court of Belgrade of 10 November 2008, liquidation proceedings over Astra banka were suspended, which lasted with interruptions from 16.11.2001, and bankruptcy proceedings were instituted. Deposit Insurance Agency was appointed as liquidation administrator on 31.08.2006.

Seven examination hearings were held at which 4.603 reported claims of creditors were examined. Total amount of reported claims is RSD 23.106 billion, of which amount RSD 3,576 billion were fully or partially recognized (with interests ca RSD 7,4 billion) and fully or partially refuted RSD 19,570 billion. Provisionings for claims in lawsuits amount to over RSD 14 billion. Claims of creditors of the third payout grade are mainly under lawsuits. The largest single creitors of the bank are P.D ''Mobtel'', Tax administration and Public Enterprise ''Železnice Srbije''

As at 31.12.2009 the Bank’s bankruptcy estate amounted to RSD 3.2 billion. The problem for finalization of the bankruptcy proceedings and establishment of the bankruptcy estate are several court decisions upon refuted claims. Claims arisen from court decisions for 60 creditors – physical persons are to be emphasized, for which extremely high amounts were established due to inadequate calculation of savings interests. For example, by one of the valid and irrevocable decisions, interest of 10% per month until the date of payment was established for one saver, which would mean that, for the deposit of RSD 10.000, that saver has the right to the sum amounting to RSD 13 billion by applying this kind of calculation. In such case the Bank filed requests for revision of judgements as well as requests for protection of legallity, for the purpose of protection of the bankruptcy estate of the debtor and the position of other creditors involved in the proceedings.

The Bank’s assets in the amount of RSD 2 billion have been encashed so far. After the remaining debtor’s assets have been encashed and final and irrevocable decisions upon refuted claims have been made, the payment of creditors shall occur.

Borska banka a.d Bor, in bankruptcy

Address:Bor,Moše Pijade 16

Tel: +381 30 424-666

Agency’s trustee: Bernardica Jovanoski

Bankruptcy proceedings over Borska banka a.d. Bor were instituted by the decision of Commercial Court of Zaječar St 124/04 dated 13.02.2004.

At previous five examination hearings bankruptcy administrator presented its opinion on justifiability of all 1.488 reported claims.

The largest creditors of Borska banka a.d. Bor u stečaju are NIS Jugopetrol, in the amount of RSD 16.3 million, Elektrotimok Zaječar, in the amount of RSD 16.2 million, Beogradska banka a.d. Beograd, u stečaju, in the amount of RSD 787 million, National Bank of Serbia, in the amount of RSD 588 million, Mytilineus Holdings s.a. Athens, in the amount of RSD 310 million, Ministry of finance – Tax administration, branch of Bor, in the amount of RSD 20.5 million.

Total liabilities of the Bank with the accrued interest amount to ca. RSD 3.5 billion. Commercial Court of Zaječar made the Decision on main compounding on 30.11.2009, in accordance with which the creditors of the II payout grade were settles in the amount of RSD 259.5 million, i.e. 10% of the recognized claims.

During the bankruptcy proceedings over Borska banka a.d Bor, in bankruptcy before the Commercial Court of Zaječar, 168 lawsuits have been resolved so far in favor of the bankruptcy debtor and are worth RSD 3.9 million.

The biggest obstacle for finalization of the bankruptcy proceedings over Borska banka is status of the company RTB Bor, from which Borska banka claims the amount of more than EUR 150 million. Depending on the level of recovery of claims of Borska banka from RTB Bor, the amount of bankruptcy estate shall be established and, accordingly, the percentage of settlement of creditors commensurately with the established claims.

Kreditno-eksportna banka a.d. Beograd, in liquidation

Address:Palmira Toljatija 5/II

Tel: +381 11 3192-129

Agency’s trustee: Vaso Tadić

Liquidation proceedings over Kreditno-eksportna banka were instituted by the decision of Commercial Court of Belgrade VI-L-118/05 dated 11.05.2006 and the Deposit Insurance Agency was appointed as liquidation administrator.

During 2008 all creditors whose claims were established were paid out, except for two creditors who filed actions for establishment of claims and for whose claims were made provisions. Liquidation administrator was ordered by the decision of the Commercial Court of Belgrade of 06.08.2008 to transfer cash assets obtained through recovery of claims to the shareholders of Kreditno-eksportna banka in liquidation, as well as all funds to be paid in to the account of the liquidation debtor. It was also ordered by the stipulated decision that all documentation proving the right of disposal over the assets should be transferred to the shareholders of the Bank.

By the conclusion of liquidation panel dated 09.06.2009, the transfer of a portion of cash assets to the shareholders was blocked, in the amount of RSD 142 million, until the lawsuit filed by the Development Fund of the Republic of Serbia against the shareholders is finalized.

Due to this and other ongoing lawsuits, as well as due to the court procedure before the Special Department of the District Court of Belgrade which relates to the purchase of the Bank’s office building by Beogradski eskontni centar in bankruptcy, it is uncertain to forecast finalization of the liquidation proceedings over this Bank.

Raj banka a.d Beograd, in bankruptcy

Address:Kralja Petra 60

Tel: +381 11 2920-640

Agency’s trustee: Branko Jugović

Bankruptcy proceedings over Raj banka were instituted by the decision of Commercial Court of Belgrade VI-St-92/2007 of 14.11.2007. Institution of the bankrupcty proceedings over the debtor was preceded by the liquidation proceedings which lasted from 22.12.2004. During these two processes 834 reported claims were examined. Total liabilities of the Bank on all bases amount to ca RSD 550 million, whereas the total assets of the bank amount to RSD 480 million.

The decision on main compounding of the bankruptcy debtor’s assets was made on 18.09.2008. After this decision became final and irrevocable in December 2009, settlement of creditors of the first payout grade in the amount of 100 % occurred. Provision of assets for one creditor of the first payout grade was made whose claim is under lawsuit (physical person, a lawsuit based on the deposit amounting to more than EUR 700.000). All creditors of the third payout grade were settled in the amount of 8.17% and adequate provisioning of assets for refuted claims of creditors of the third payout grade was performed.

Depending on encashment of real estates, recovery of claims and outcome of lawsuits, during 2010 shall occur the subsequent compounding of the bankruptcy estate. Since it is expected that the sale of the Bank’s real estates shall lead to increase of the bankruptcy estate by ca RSD 80 million, the subsequent compounding would follow.

Three ongiong lawsuits in which the Bank was sued and for which the assets amounting to EUR 1 million were provisioned, are the obstacle for finalization of the bankruptcy proceedings. (''Titan'' d.o.o, Beograd, a physical person and former shareholders from Bulgaria).

Controlbank a.d. Beograd, inbankruptcy

Address: Sremska 3-5

Tel: +381 11 2630-230

Agency’s trustee: Mladen Sorajić

Bankruptcy proceedings over this bank were instituted by the decision of Commercial Court V St. 11/07 of 30.01.2007. Deposit Insurance Agency was appointed as bankruptcy administrator. The Bank was in the liquidation proceedings from 18.06.2001 and according to then laws applicable, it was under competence of the Commercial Court.

All reported claims were examined at 5 hearings held. Total liabilities of the Bank towards the creditors amount to more than RSD 800 million. The assets of the bankruptcy debtor amount to ca RSD 170 million. Based on the decision on main compounding dated 04.01.2008, bankruptcy debtor made the payment to creditors in the total amount of more than RSD 140 million, which is level of settlement of ca 18%.

By payment of assets according to the Decision on subsequent compounding during 2009, percentage of settlement of creditors of the third payout grade was increased from 18% to 30%. Available funds of the bankruptcy debtor as at 31.12.2009 amount to ca RSD 180 million. Of these funds, over RSD 150 million are provisioned for the ongoing lawsuit with ''HK Koka Hybro komerc'', due to the refuted claim of the creditor. The largest debtors of the Bank are: the stated company ''HK Koka Hybro komerc'' with the debt of more than RSD 300 million towards the Bank, and several companies, related parties owned by the one of the Bank’s shareholders. The stated claims of the Bank are under lawsuit.

Medifarm banka a.d. Beograd, in bankruptcy

Address:Kralja Petra 19

Tel: +381 11 2632-554

Agency’s trustee:Zvonko Burić

By the Decision of Commercial Court of Belgrade, XIII-St-4/07 of 24 January 2007, bankruptcy proceedings were instituted over Medifarm banka a.d. Belgrade. Liquidation proceedings over this bank were instituted under competence of Commercial Court of Belgrade on 19.07.1996.

Bankruptcy administrator presented its opinion on justifiability of 49 reported claims at three hearings held. The recognized claims of creditors with accrued interest amounted to RSD 3.22 billion as at 31.12.2009.

During the bankruptcy proceedings, legal actions were undertaken and lawsuits instituted from which can be expected a recovery of receivables in favor of Medifarm banka a.d. Beograd, in bankruptcy. The value of these lawsuits is around RSD 2 billion. The bankruptcy administrator will resume the legal activities with a view to recover the receivables and form the bankruptcy estate needed for settling finally and irrevocably recognized bank’s liabilities.

Gold Internacional banka a.d. Beograd, u stečaju (in bankruptcy)

Address:Gavrila Principa 60

Tel: +381 11 6687-755

Poverenik Agencije:Pero Radović

By the decision of the Commercial Court of Belgrade, V-St-92/08 of 09 October 2008, bankruptcy proceedings were instituted over Gold internacional banka a.d. Beograd. Institution of the bankruptcy proceedings over the debtor preceded the liquidation proceedings which lasted from 12.10.1998 and which were conducted by the Commercial Court of Belgrade.

All claims reported by creditors were examined and on that basis was found that total liabilities of the debtor in bankruptcy were over RSD 60 million, of the principal debt, without the pertaining interest. Total liabilities of the Bank with pertaining interest amount to ca RSD 600 million. The Bank has neither movable nor immovable property. Currently, there are ca RSD 4 million in the bank’s accounts, based on partial recovery of receivables from the bank’s debtors. Further course of the bankruptcy proceedings depends on further recovery of receivables and the close of pending lawsuits. Taking into account the course of recovery and total liabilities of the Bank, settlement of creditors of ca 2 % is expected.

BCBANKCREDIT a.d. Beograd, in bankruptcy

Address:III Bulevar 25/b

Tel: +381 11 311-41-33

Agency’s trustee:Dragica Čorović

By the Ruling of the Commercial Court of Belgrade, XII-St-26/08 of 06.05.2008, bankruptcy proceedings were instituted over ''BC BANK CREDIT'' a.d. Beograd. Institution of the bankruptcy proceedings over the debtor preceded the liquidation proceedings which lasted from 24.08.2001.

It was found during the proceedings that the bank had real estates worth more than RSD 97 million, which is subject of a lawsuit concerning ownership.

It is a lawsuit filed against a physical person, former shareholder of the Bank, who took the ownership over the office building of area ca 900m2 which was owned by the Bank. The Bank has neither cash assets nor property of bigger value, except for the stated building which is under dispute.

Current bank’s liabilities based on recognized claims with pertaining interest, as well as based on actions filed against bankruptcy debtor amount to more than RSD 130 million. Recovery of the receivables from debtors as well as the outcome of the lawsuits will define further course of the bankruptcy proceedings and the percentage of creditors’ settlement.

Insurance companies

Joint-stock insurance company ''Balkan osiguranje'', in bankruptcy

Address:Pazinska 6

Tel: +381 11 2462-839

Agency’s trustee:Đorđe Zečević

Liquidation proceedings over the joint-stock insurance company ''Balkan osiguranje'' of Belgrade were instituted by the Ruling of Commercial Court of Belgrade, XV-L-21/05 of 21 February 2005. Deposit Insurance Agency was appointed as liquidation administrator by the decision of the Commercial Court of Belgrade XV-L-21/05 dated 25.08.2005. After interruption of the proceedings, a new decision was made on institution of the liquidation proceedings no. XII-L-10/06 of 08.08.2006.

Since the assets of the liquidation debtor were not sufficient to settle all creditors fully, Commercial Court of Belgrade made the decision VI-ST-28/07 dated 23.03.2007 initiating bankruptcy proceedings this company.

After the reported claims were examined, it was established that the liabilities with interests and provisions on the basis of lawsuits amount to RSD 95 million. Through the insight into the documentation of the company, it was concluded that the liabilities of the founders and shareholders towards the bankruptcy debtor amount to more than RSD 100 million. There are seventeen ongoing lawsuits regarding recovery of the stated amount. Further course of the bankruptcy proceedings, i.e. submission of proposal for main compounding and close of the proceedings shall depend on recovery of the stated claims as well as on the further encashment of the assets. The largest debtor against whom a lawsuit was filed for the usurped real estate is the former owner of the insurance company, who was litigated for the amount of over RSD 80 million.

During 2009, through recovery of claims in the court procedure over the property of debtor’s related parties, recovery of about RSD 25 million was made. Of this amount, RSD 9 million were returned to the Deposit Insurance Agency for the loan approved by the Decision of the Agency’s Board of directors and Decision of the Commercial Court of Belgrade dated 21.05.2008 in the amount of RSD 11.6 million. Costs of the bankruptcy proceedings were settled by the rest of money.

Joint-stock insurance company ''Ekos'', in bankruptcy

Address:Pazinska 6

Tel: +381 11 2462-839

Agency’s trustee: Đorđe Zečević

Liquidation proceedings were instituted based on the Ruling of the Commercial Court of Belgrade, number XVI-L-116/05 оf 31.01.2005. By the Commercial Court’s Ruling number XVI-L-116/05 of 24 August 2005, the Deposit Insurance Agency was appointed as liquidator. By the Court’s Ruling XIII-St.30/07 оf 30 March 2007, bankruptcy proceedings were instituted since the debtor in bankruptcy did not have sufficient property to settle all creditors fully.

The amount of ca RSD 390 million was recognized at the examination hearings in the liquidation and bankruptcy proceedings. Draft Decision on main distribution envisages payment to creditors at the level of about 6% оf the established claims. As a provisioning for pending lawsuits, the amount of about RSD 15 million was allocated. Both movable and immovable properties were encashed. Still uncertain is a recovery of the claims from related persons of the shareholders of the debtor in bankruptcy worth about RSD 140 million. The insurance company has on its accounts the funds amounting to ca RSD 26 million.

Joint-stock insurance company ''Evropa osiguranje", in bankruptcy

Address:Beograd, Kralja Petra 60

Tel: +381 11 3281-840

Agency’s trustee: Vasilj Vasiljević

Liquidation proceedings were opened based on the Ruling of the Commercial Court of Belgrade, IV L 25/05 оf 01 February 2005. BytheRulingoftheCommercialCourtofBelgrade, VIL 26/05 оf 26.08.2005, theDepositInsuranceAgencywasdesignatedasliquidator and after it was established in the liquidation proceedings that there are no suffcient assets for 100% payment of all creditors, the bankruptcy proceedings were insitituted over this company upon Agency’s proposal and by the Ruling of the Commercial Court of Belgrade dated 12.03.2009.

Eleven hearings have been held so far at which 7.000 reported claims were examined. Total value of all the reported claims is more than RSD 2 billion, of which amount was recognized, together with the pertaining interest, over one billion dinars. Taking into account the assets provisioned for the lawsuits, as well as other costs related with the proceedings, total liabilities of the debtor in liquidation amount to over RSD 1.8 billion.

The property of the bankruptcy debtor is estimated to ca RSD 1.6 million (cash, assets invested in securites, claims from debtors, movable and immovable property).

Joint-stock insurance company ''Imperial'', in bankruptcy

Address:Novi Beograd, Palmira Toljatija 5/II

Tel: +381 11 3192-798

Agency’s trustee:Branislav Ilić

The first liquidation proceedings were instituted by the Ruling of the Commercial Court of Belgrade VIII - L 27/05 of 26.01.2005. By the Ruling of the Commercial Court of Belgrade were suspended the liquidation proceedings over the insurance company, and pursuant to the new Ruling of the same Court, XV-L number 27/05 оf 08.08.2005 liquidation proceedings were instituted again and at the same time Agency was appointed as liauidation administrator

As liquidator concluded that the property was not sufficient to settle the creditors, a proposal was filed with the Commercial Court to institute bankruptcy proceedings. Bankruptcy proceedings were instituted pursuant to the Ruling of Commercial Court of Belgrade dated 25.04.2007.

In the hearings held so far, 5.300 reported claims have been examined. It was established that the liabilties of the insurance company based on the recognized claims, mainly MTPL’s, at this moment amount to RSD 867 million, whereas total liabilities of the company amount to ca RSD 1.3 billion. Total assets of the company, i.e. real estates and claims from debtors of the company, amounts to ca RSD 150 million. Recovery of claims from the affiliated parties – shareholders of the insurance company, ''Imperos'' and ''Imper trade'' is uncertain, and the stated claims comprise the largest portion of the debtor’s property.

In case the existing claims are recovered and debtor’s property is encashed, the debtor’s creditors could be settled in the amount of 11%. The rest of liabilities based on MTPL’s shall be paid out at the expence of the Guarantee Fund.

Joint-stock insurance company ''Morava'', in liquidation

Address:Novi Beograd, Pariske komune 26

Tel: +381 11 3194-136

Agency’s trustee:Rako Božović

By the Ruling of the Commercial Court of Belgrade, V-L-8/06 of 12.07.2006, liquidation proceedings were instituted over the Joint-stock Insurance Company ''Morava osiguranje''. The Deposit Insurance Agency was appointed as liquidator.

Upon completion of the activities as envisaged by the Law on Bankruptcy Proceedings and the processing of all reported claims, the liquidator filed a proposal for the main distribution of the liquidation estate. Upon the decision on main compounding has become final and irrevocable, all creditors were settled in 2008. The liquidator made the provisioning of RSD 29 million for the lawsuits under refuted claims.

The extension of the liquidation proceedings was caused, among other reasons, by three lawsuits in which a party is one of the insurance company’s shareholders, ''KJUBI MAKEDONIJA'' a.d.o. The lawsuits are filed for the purpose of annulment of the sales and purchase agreement on sale of own shares of the A.D. za osiguranje „Morava“ to the company ''Moravakomerc''.

After these lawsuits have been ended and the final list of shareholders established, distribution of the surplus of liquidation estate in the amount of more than RSD 200 million would occur and the liquidation proceedings over this insurance company would be closed.

Joint-stock insurance company ''SIM'', in bankruptcy

Address:Sremska 3-5

Tel: +381 11 3281-698

Agency’s trustee:Mladen Sorajić

Liquidation proceedings were instituted based on the Ruling of the Commercial Court of Belgrade, VI-L-3/06 of 25.04.2006. By the Ruling of the same Court, VI-St.45/07 of 30.04.2007, bankruptcy proceedings were opened. As all activities envisaged by the Law had been carried out, on 12.12.2008 was filed a proposal for the main distribution. On 24.02.2009 the decision on main distribution of the bankruptcy estate bacame final and irrevocable and payment of creditors started.

RSD 56.6 milliom were paid to the creditors of the second payout grade, by which amount they were settled 100%, whereas the creditors of the third payout grade were settled in the amount of 9.89%. The assets amounting to more than RSD 40 million were provisioned for the creditors with refuted claims based on MTPL contracts, who filed a lawsuit for the establishment of refuted claims.

There are 172 pending lawsuits for establishment of refuted claims. RSD 27 million are provisioned for these lawsuits. Debtor’s bankruptcy estate currently amounts to more than RSD 150 million.

Joint-stock insurance company ''STRELA'', in bankruptcy

Address: Valjevo,Hajduk Veljkova bb

Tel: +381 14 220-998

Agency’s trustee: Đorđe Zečević

By the Ruling of the Commercial Court of Valjevo, L-23/05 of 26.05.2005, liquidation proceedings were opened over this company. Pursuant to the Ruling of the same Court, St. 3/07 of 09.02.2007, bankruptcy proceedings were opened. Liabilities towards the creditors of the third payout grade were established in the amount of RSD 175 million with the pertaining interest.

According to the decision on main compunding dated 23.06.2008, 40% of recognized claims amounting to RSD 65 million, were paid to the creditors. Further RSD 35 million were paid according to the decision on subsequent distribution, resulting in settlement of the creditors of the third payout grade in the amount of 60%. Amount of RSD ca 36 million was provisioned for the ongoing lawsuits. There are about RSD 76 million on the accounts of the bankruptcy debtor.

Joint-stock insurance company ''Dinara'', in bankruptcy

Address:Novi Beograd, Palmira Toljatija 5/II

Tel: +381 11 3192-798

Agency’s trustee:Branislav Ilić

Based on the Ruling of the Commercial Court of Belgrade, XIII-L-907/04 of 30 December 2004,

liquidation proceedings were instituted against this insurance company. Pursuant to the Ruling of

the Commercial Court of Belgrade, XIII L number 907/04 of 26 August 2005, the Deposit Insurance

Agency was appointed as liquidator.

By the Ruling of the same Court, XIII-St.49/07 of 21 May 2007, the bankruptcy proceedings were

instituted since the company does not dispose of sufficient property to settle 100% of the claims of

all creditors. Upon completion of all activities set forth by the Law and needed for the sale of the

property and the insurance company’s liquidation estate, on 27 December 2007 and on 17 April

2008 were rendered the Rulings based on the proposal for partial distribution of the bankruptcy

estate by which were fully settled the creditors in the 1st, 2nd and 3rd payout grade. Claims of

creditors were 100% settled on the basis of motor third party liability insurance. In August 2008, a

proposal was presented for main distribution with a proposed payment of the remaining payout

grades. On 09 December 2008 was rendered the Ruling on main distribution of the insurance

company’s bankruptcy estate according to which the creditors in the 4th payout grade were settled

80%.

In view of the positive outcome of the litigation in which the insurance company was sued, a

subsequent distribution of assets is also expected so that all creditors of the debtor in liquidation

would be settled 100%. Also, in the case of a positive outcome of the litigation in which the debtor in

liquidation was sued and for about 50 million dinars was provisioned, distribution of a surplus of

liquidation estate to the insurance company’s shareholders may also be expected.

Only in the litigation involving the creditor „Ras inženjering“ was provisioned the amount of 27

million dinars, and only after the judgment in favor of the creditor, which will adjudge a much

smaller amount, about 22 million dinars of provisioned assets would be released. The denied claim

concerns the amount based on the works executed in one of the insurance company’s facilities

Other financial organizations

Joint-stock company - Savings and Credit Cooperative ''1891'', Beograd, in liquidation

Address:Gavrila Principa 60

Tel: +381 11 6687-755

Agency’s trustee:Pero Radović

Liquidation proceedings over this cooperative were instituted by the decision of the Commecial Court of Belgrade dated 04.01.2007.

After the processing of all reported claims (over 30.000) and assessment of the amount necessary for paying the established claims, the total liability of cooperative was established in the amount of RSD 315 million.

Taking into account the assets available to the cooperative and that there are several thousands of established claims, on 09.07.2008 was filed a proposal for partial distribution of the liquidation estate. A proposal for main distribution of the liquidation estate was filed on 12.12.2008. By the end of 2009 were paid RSD 280 million on these bases.

Total liquidation estate amounts to over RSD 300 million. Taking into account the remaining liabilities based on unpaid established claims, provisions for lawsuits and costs of the proceedings, the expected surplus of liquidation estate after setllement of all these liabilities, would amount to RSD ca 140 million. Further obstacle for finalization of the liquidation proceedings over the cooperative is the status of ownership over the cooperative’s property which is still unsloved.

Joint-stock company Savings and Credit Cooperative of Independent Entrepreneurs of Serbia, Beograd, in bankruptcy

Address:Jurija Gagarina 153a

Tel: +381 11 227-11-82

Agency’s trustee: Novica Krstić

Liquidation proceedings over this cooperative were instituted by the decision VIII-L-18/06 of the Commercial Court of Belgrade dated 04.01.2007.

After the inventory-taking of the property was performed and opening balance sheet was drawn up, it was concluded on 18.01.2007 that the assets were at the level of about RSD 70 million, and liabilities of the cooperative amounted to more than RSD 102 million. According to the balance sheet on the cut-off date of 31.10.2007, assets were worth over RSD 92 million and liabilities over RSD 117 million.

Taking into account that even after recovery of receivables from the Cooperative’s debtors it did not have assets sufficient for 100% settlement of creditors whose receivables were established, institution of the bankruptcy proceedings over the cooperative was proposed. The decision of the Commercial Court of Belgrade on institution of the bankruptcy proceedings was rendered on 28.11.2007.

Cooperative’s assets amount to over RSD 100 million as at 26.01.2009. Main distribution of the debtor’s bankruptcy estate was performed during 2009, resulting in 100% settlement of the creditors of the second and third payout grades. The appropriate provision of fundes for ongoing lawsuits was also performed. If during 2010 the remaining property of the cooperative would be sold successfully, distribution of the surplus of the bankrupcy estate to the shareholders and close of the bankruptcy proceedings could be expected.

Joit-stock Savings and Credit Organization “Denarius” Beograd, in bankruptcy

Address: III Bulevar br.25/

Tel: +381 11 311-41-33

Agency’s trustee: Dragica Čorović

Liquidation proceedings over this cooperative were instituted by the decision of the Commercial Court of Belgrade dated 08.01.2007. Upon drawing up the opening liquidation balance sheet it was cocluded that the liabilities of the liquidation debtor exceeded the real value of the property, so that the conditions for initiation of the bankruptcy proceedings were met. Commercial Court of Belgrade rendered a decision on institution of the bankruptcy proceedings over the debtor on 26.10.2007.

The property of the bankruptcy debtor was estimated to about RSD 77 million. Receivables toward the debtors amount to RSD 73 million. The most receivables are those from the enterprises within “EI Niš” system. Taking into account that the restructuring of these enterprises is in progress, recovery of these receivables is not possible at the moment.

Since the current cash assets of the cooperative amount to about RSD 3 million, the percentage of settlement of creditors shall depend on the encashment of cooperative’s property and recovery of receivables from the debtors.