Banking considerations for foreign investors in Albania

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Banking considerations for foreign investors in
Albania
Karl Sevelda, Member of the Board
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The Raiffeisen Banking Group Three-tier
structure
Raiffeisen Banks 557 Raiffeisen Banks, 1,695
Affiliated Branches
Regional Raiffeisen Banks 8 Regional Raiffeisen
Banks, Zveza Bank
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RZB Group one of the world's 100 biggest banks
delivering strong figures
gt 14 million customers
gt 61,000 employees
gt 3,000 outlets
31/12/2007 31/12/2006 Assets ( bn) 137.4
115.6 RoE before tax () 22.2
21.5 Profit before tax (mn) 1,485
1,286 Customers (mn) 13.6
gt12 Staff 61,351 55,434 Outlets 3,036
2,866
36 markets
1 group
RZB GROUP
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Asset growth of RZB AG and RZB Group
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Local ranking by total assets
Picture HO RB Albania
1 Albania, Raiffeisen Bank 1 Serbia,
Raiffeisen banka 2 Bosnia and Herzegovina,
Raiffeisen Bank Bosna i Hercegovina 2 Kosovo,
Raiffeisen Bank Kosovo 2 Ukraine, Raiffeisen
Bank Aval 3 Belarus, Priorbank 3 Bulgaria,
Raiffeisenbank (Bulgaria) 3 Romania, Raiffeisen
Bank 3 Slovakia, Tatra banka 4 Croatia,
Raiffeisenbank Austria 5 Czech Republic,
Raiffeisenbank eBanka 6 Hungary, Raiffeisen
Bank 7 Russia, Raiffeisenbank Austria
Impexbank (largest international banking
group) 10 Slovenia, Raiffeisen Banka 12
Poland, Raiffeisen Bank Polska
THE SUCCESS STORY
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RB Albania

• 2004 2007 Difference in
• Total assets EUR 1,647 mln EUR 1,947 mln
  18.8
• Total loans EUR 7.5 mln EUR 486 mln
  6,380.0
• Total liabilities EUR 1,605 mln EUR 1,860 mln
  15.9
• Number of employees 1,026 1,373
  33.8
• Number of branches 84 96 14.3
• Number of customers 300,644 552,193
  83.7
• Debit cards 6,666 183,565
  2,653.8
• ATM 31 154 396.8
• POS N/A 353 n.a.

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International Desk Concept

• Account opening services
• Working Capital Finance
• Financing long-term investments
• Financing acquisitions and/or start-ups
• Cash management services
• Trade Finance (L/C, L/G etc.)
• Export Finance with export promotion programs
• Project structured finance/Real Estate
• Investment products
• Leasing / Factoring
• Personal banking services for customers'
  employees
• FX Business

15 MARKETS, ONE SERVICE LEVEL
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Other value adding services

• English speaking staff
• Mrs. Adriana Jorgji/ Head of Int. Desk Albania
• Tel. [phone]
• adriana.jorgji_at_raiffeisen.al
• Contacts to local authorities
• Referral of CPAs and law firms
• Support in founding a business
• Search of suitable production sites and objects
• Subsidy programmes
• Networking and lobbying

15 MARKETS, ONE SERVICE LEVEL
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Albania A lot of room/need to catch up!
110
Spain
100
Greece
90
80
70
Portugal
60
50
40
30
20
10
0
PL
SI
RS
SK
HR
AL
BY
CZ
RO
BG
BA
RU
UA
HU
CE
SEE
CIS
2000
2007
GDP per capita (at PPP) in of EU-27 avg Source
wiiw, Raiffeisen RESEARCH
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High GDP growth rates
Source Raiffeisen RESEARCH
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To be considered for investors

• Standard of legal system/ Independency of justice
• Bureaucratic procedures (registration of land
  ownership, approval of construction permissions,
  etc.)
• Lack of infrastructure (Poor roads, electricity/
  power cuts, ..)
• Low Standard of Social System

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Positive factors to be considered

• Upcoming privatization process
• High GDP growth rates
• Efforts to reduce administrative obstacles
• Fast registration of business (8 days)
• 10 corporate tax
• Signed Double Taxation Agreement with Austria
  (in force by 2009/01/01)

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Thank you for your attention!