28.4.2008 A General Meeting of the Czech Export Bank, a.s. today concluded with approval of a basic material assessment of banking activities in the year 2007 and, at the same time, it approved additional important documents. The General Meeting accepted the Report about the activities of the Czech Export Bank, a.s. for the year 2007, as part of which was also presented the Report of the Board of Directors on Business Activities and concerning the status of its assets and approved regular final accounts for the year 2007 and the proposal for distribution of income from the year 2007. It approved the legitimacy of the activities of the Board of Directors and the management of the company during the fulfilment of the conception of the CR government’s pro-export policy.

The General Meeting additionally approved a proposal for increasing the bank authorised capital in the amount of 150,000,000 CZK to a total of 2,000,000,000 (two billion) CZK. The newly issued shares will be owned by the state, which will subscribe to them to their full extent. The state will therefore directly own 75 % of the shares of the bank. Shareholder rights are executed by the Ministry of Finances (52 voices), the Ministry of Industry and Trade (30 voices), the Ministry of Foreign Affairs (12 voices) and the Ministry of Agriculture (6 voices). The other 25 % is owned by the state through EGAP.

The decision about the increase of the authorised capital of the bank is motivated by requirements of the legislature and the regulator and mainly by the increasing requirements of Czech exporters for supporting of financing, which the bank is expecting in the medium-term horizon.

The General Meeting elected a new member to the supervisory board as a substitute for the resigning E. Hrdá. He is Milan Sedláček, Head Manager of the section of economic co-operation and presentation abroad of the Ministry of Agriculture.

Basic Data about the Results of the Bank in the Year 2007:

It is possible to consider the results of the CEB activities as exceptionally favourable, both in the trade and financial spheres. All declared basic indicators of bank activity were fulfilled and exceeded:

• CEB signed loan and guarantee contracts in a total amount of 19.4 billion CZK which represents almost 103 % of the whole-year’s goal; this is the third biggest volume of signed contracts in the history of CEB;
• Total status of loans in the year 2007, in comparison with the end of the year 2006 increase of 33.7% (i.e. from 17.8 billion CZK to 23.8 billion CZK);
• Regarding the structure of forms of financing, the main part of the volume (89 %) is represented by contracts for the financing of loans; in the year 2007 CEB provided to exporters assets in terms of the utilisation of provided loans in a total amount of almost 13.8 billion CZK; an indicator of utilisation of loans was in the year 2007 historically the highest since the year 1996 when CEB provided utilisation of the first loans;
• Inter-annual increase of the status of loans in the amount of 6 billion CZK projected also the growth of balance sum which inter-annually increased by more than 33% and its volume reached the amount of 34.3 billion CZK;
• Significant inter-annual growth of the balance sum is inducted by the hefty increase in the status of loans to which also adapts the liability side of the balance. In the sphere of resources, partial restructuring took place and new forms of their acquisition were employed in the form of the Euro Medium-Term Notes Program which guarantees more flexible obtaining of necessary resources with significantly lower costs than is the standard issuance of bonds with a fixed coupon. Possibility to utilise the program was prolonged to the year 2009;
• CEB continues to declare a very high quality of credit portfolio, in a situation in which the ratio of classified loans to the total volume of the credit portfolio amount to 4.5%.

These results were achieved in conditions influenced by significant strengthening of the CZK exchange rate towards the USD and the EURO as regards the main exchange currencies in which are carried out almost 98 % of all the business transactions of CEB; meanwhile all decisive entries of balance are recorded in CZK. With respect to the strengthening of the exchange rate of CZK selected indicators of results of the bank would have increased, as an illustration, in the following way:

with consequent impact on the volume of balance sum.

Jan Stolár
Director of Communication

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ČEB provides Czech exporters with state-supported financing of exports and financial services related to exporting goods and investments, thereby enabling Czech exporters to enter tenders on the global market under conditions comparable to those of competitors from other developed countries. All of CEB’s activities are in full compliance with WTO rules, relevant recommendation of the OECD, and European Union directives. CEB actively cooperates with other organizations providing state support, particularly Czech Trade, and uses insurance from EGAP. CEB’s mission is to support entrepreneurs by means of the most advantageous financing, not for maximum profit. CEB has the same rating evaluation as the Czech Republic.