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					      DOCUMENT OF THE EUROPEAN BANK
    FOR RECONSTRUCTION AND DEVELOPMENT




MINUTES OF THE BOARD MEETING
        OF 24 JULY 2007
                       Meeting of the Board of Directors – 24 July 2007
                                      List of Attendance

Chairman                                 President
First Vice President                     Varel Freeman
Acting Secretary General                 Horst Reichenbach
General Counsel                          Emmanuel Maurice

Directors                               Alternate Directors
László Andor                            Pavel Štěpánek
Terence Brown                           Walter Cernoia
Anne Counihan                           Ib Katznelson
João Cravinho                           Stefanos Vavalidis
Alain de Cointet                        Francis Mougenez
Sven Hegelund                           Baldur Pétursson
Ole Hovland                             Jari Gustafsson
André Juneau                            Michelle Kaminski (TAD)
Byung-Il Kim                            Peter Reith
Elena Kotova
Vassili Lelakis                         Carole Garnier
Kazimierz Marcinkiewicz                 Kalin Mitrev
Kazuya Murakami                         Hiroyuki Kubota
Michael Neumayr                         Hedva Ber
Igor Podoliev                           Virginia Gheorghiu
Enzo Quattrociocche                     Ugo Astuto
Gonzalo Ramos                           David Martinez Hornillos
                                        Jonathan Ockenden
Manuel Sager
Joachim Schwarzer
Jean-Louis Six                          Irena Sodin
Mark Sullivan
Jan Willem van den Wall Bake            Hans Sprokkreeff

Secretariat
Nigel Carter                            Paul Martin
Colm Lincoln                            Nikola Milushev

Staff
Brigita Schmögnerová           Axel van Nederveen                  Tatiana Moiseeva
                               Henrik Lannero                      Zulfira Akhmedova
Alexander Auboeck              Zsuzsa Hargitai                     Alexander Pavlov
Olivier Descamps               Michelle Senecal de Fonseca         Chikako Kuno
Kurt Geiger                    Janis Feldmanis                     Jana Sivcova
Alain Pilloux                  Thomas Maier                        Bayan Kozbakova
Peter Reiniger                 Francois Gaudet                     Leonie See
                               Svetlana Radchenko                  Marie-Alexandra Veilleux
Fredrik Korfker                Susan Goeransson                    Oksana Pak
                               Witek Szpak                         Eric Rasmussen
                               Sabina Dziurman                     Duncan Senior
                               Andrew Ostaszewski                  Tatyana Yemboulaeeva
                               Milton Stefani                      Gilles Mettetal
                               Karl von Klitzing                   Miljan Zdrale
                               Alex Tanase                         Lyudmyla Lishchenyuk
                               Terry McCallion                     Henrik Lannero
                               Michalis Kiourktzoglou              Vera Wagner
                               Yelena Tonna
1.   Opening of the Meeting and adoption of the Agenda



•    The agenda was approved.

•    The Acting Secretary General reported that the following items had been
     approved on a no-objection basis:

     -   An equity investment of up to EUR 2.5 million in MKB Unionbank, a
         commercial Bank incorporated in Bulgaria, had been approved on 18 July
         2007, as part of pro-rata capital increases planned for 2007-2009. The
         proposed series of investments will allow the Bank to retain its stake in
         the company.

     -   An equity increase of up to EUR 6 million in ProCredit Bank Bulgaria,
         together with an equity increase EUR 5.8 million in ProCredit Bank
         Serbia, as part of capital increases planned for 2007-2008, had been
         approved on 20 July 2007. The operations will enable the companies to
         continue to expand their lending to micro-enterprises and MSMEs in
         Bulgaria and, in the case of ProCredit Serbia, to comply with capital
         adequacy requirements following recent changes to the loan provisioning
         requirements of the National Bank of Serbia.


2.   Minutes of the Board Meeting of 10 July 2007



•    The revised Minutes of the Board Meeting of 10 July 2007 were approved.


3.   Treasury and Treasury Risk Management Authority
     - Report by the Chairman of the Financial and Operations Policies
       Committee



•    The Board approved the Treasury and Treasury Risk Management Authority.


4.   Annual Evaluation Overview Report for 2007 and
      Management Comments
     - Report of the Chairman of the Audit Committee



•    The Board approved the Annual Evaluation Overview Report for 2007.
5.   Hungary: Hospinvest
     Report by the Chairman of the Financial and Operations Policies
     Committee



•    The Board approved an equity investment of not more than EUR 6 million in
     Hospinvest. The investment will assist in the reform of the public hospital
     network in Hungary by supporting the company’s bid for management of
     additional public hospitals and hospital pharmacies and to implement a
     restructuring and modernisation programme at these healthcare institutions.


6.   Ukraine: Oisiw



•    The Board approved an equity investment of EUR 22.3 million in Braeside, a
     co-investment vehicle investing alongside SBF IV in Oisiw Limited.

•    The funding will enable Oisiw to acquire and consolidate regional cable
     operators in Ukraine as well as build out and improve the telecom networks
     acquired to provide improved cable and broadband capability.


7.   Regional: Veolia Voda Equity Investment



•    The Board approved an equity investment of up to EUR 105 million in Veolia
     Voda SA. The transaction will expand private sector participation in the water
     utility sector enabling Veolia Water to build on existing operations in Central
     and Eastern Europe and expand its operation east into new markets.


8.   Regional: E Energija Energy Efficiency Project
     Report by the Chairman of the Financial and Operations Policies
     Committee



•    The Board approved an equity investment of up to LTL 17.5 million
     (Lithuanian Litas) (EUR 5.1 million equivalent) in the share capital of E
     Energija and a EUR 15 million long term loan to be provided in two tranches,
     which will be used to finance the Company’s expansion as well as additional
     energy related investments under its existing concession agreements in
     Lithuania, Latvia and Ukraine.
9.    Georgia: Georgian Financial Sector Framework



•      The Board approved USD 75 million for the Georgian Financial Sector
       Framework. The Facility will be used to provide finance to banks and non-
       bank financial intermediaries.


10.    Ukraine: Prosto Finance



•      The Board approved a loan of up to USD 30 million to enable Prosto Finance
       to further develop consumer lending in Ukraine and support the development
       of credit bureaux in the country.


11.    Ukraine: International Mortgage Bank



•      The Board approved a three-year loan of up to USD 20 million to support the
       company’s rapidly growing consumer finance operations.


12.    Serbia: Privredna Banka



•      The Board approved a loan of up to EUR 10 million to Privredna Banka. The
       loan will be used to on-lend to individuals for residential mortgage loans in
       Serbia.


13.    Regional: Caucasus Energy Efficiency Programme (CEEP)



•      The Board approved a framework of up to USD 60 million to provide loans to
       participating banks in Georgia, Armenia and Azerbaijan for financing energy
       efficiency and renewable energy investments.

•      The framework is supported by donor funds to provide technical assistance to
       participating banks and sub-borrowers for the preparation and implementation
       of investments.
14.   Russian Federation: Center-Invest Bank Mortgage Finance, Energy
      Efficiency and SME Loan Facility



•     The Board approved a syndicated loan in the total amount of RUB 1 billion
      (not exceeding USD40 million or EUR 29.6 million) comprising an “A Loan”
      portion of RUB 500 million for the Bank’s account and a “B Loan” portion of
      RUB 500 million will be syndicated to FMO. The loan will be used to support
      the company’s financing of residential mortgages and lending to regional
      small and medium enterprises and individuals as well as for energy efficiency
      related projects in the South of Russia.


15.   Russian Federation: Bank Kedr – SME Loan



•     The Board approved an SME term loan of up to RUB 400 million (EUR 11.5
      million equivalent) to enable the company to grow by providing term
      financing to SMEs in Krasnoyarsk and other regions.


16.   Russian Federation: Bank Kazansky SME Term Loan



•     The Board approved a loan of RUB 260 million (EUR 7.4 million equivalent)
      to Bank Kazansky. The loan would be used to support the company’s lending
      to local small and medium enterprises.


17.   Ukraine: MegaBank – MSME Senior Loan



•     The Board approved a senior loan of up to USD 20 million to support the
      development of MegaBank’s regional MSME lending operations.


18.   Ukraine: SEB Ukraine Equity Framework



•     The Board approved the and acquisition of 9.95% voting stake in SEB Ukraine,
      a subsidiary of SEB, incorporated in Ukraine, for up to EUR 10 million.

•     Further, the Board approved up to an additional EUR 20 million for the
      acquisition of 2 separate banks under the framework, which are to be acquired
      by SEB Group in the short to medium term. EBRD will acquire up to 10% in
      each of these banks and will have up to 10% in the final consolidated
      Ukrainian subsidiary of SEB
•     These operations will support development of consolidation in the Ukrainian
      banking sector.


19.   Republic of Slovenia: Nova Ljubljanska Banka d.d. (‘NLB’)



•     The Board approved the Bank’s participation in an increase in the capital of
      Nova Ljubljanska Banka d.d. for the total amount of EUR 5 million. The
      capital increase will support the bank’s merger with three regional Slovenian
      banks, as well as the consolidation of Nova Ljubljanska Banka Group and the
      acquisition of other subsidiaries.


20.   Republic of Moldova: Banca Sociala - Credit Lines for SMEs (II)



•     The Board approved a loan of EUR 5 million to Banca Sociala. The loan would
      be used to support the expansion of the company’s lending to private SMEs in
      Moldova.


21.   Belarus: Microfinance Bank of Belarus “MFBB”



•     The Board approved a founding equity investment of EUR 2.45 million
      (including EUR 1.050 million for warehousing the shares for a co-
      shareholder) representing up to 35% of the MFBB and voting rights in the first
      round of capital investment. The aggregate EBRD investment will be up to
      EUR 3.5 million (including EUR 1.05 million for warehousing the shares for a
      co-shareholder) after the 1st and 2nd round of capital increase. The Board also
                                P   P   P   P




      approved a senior loan of EUR 10 million to support lending to micro and
      small enterprises.


22.   Russian Federation: General Motors Assembly Plant



•     The Board approved a loan of USD 150 million (EUR 115 million equivalent)
      to LLC General Motors Auto comprising an “A Loan” portion of up to USD
      30 million (EURO 23m) for the Bank’s own account and a “B Loan” portion
      of up to USD 120 million (EURO 92m). The loan will be used to finance the
      construction and operation of a greenfield vehicle assembly facility in St.
      Petersburg.
23.   Russian Federation: VYSO



•     The Board approved an equity investment and a loan in the total amount of up
      to USD 12 million to finance investments in equipment for corrosion
      protection and fireproofing of oil and gas platforms, development of new
      corrosion-protection services, upgrade of the training centre and regional
      expansion of the company.


24.   Serbia: Nectar



•     The Board approved a loan of Euro 10 million to Nectar. The loan will be used
      to support Nectar’s operations and further expansion, by means of the
      development of its direct distribution network, strengthening its marketing
      activities, and refinancing existing loans.


25.   Regional: Soufflet Malt Romania (Soufflet MPF Increase – 3rd sub- P   P




      project)



•     The Board approved a loan of EUR 20 million which will enable Soufflet Malt
      Romania to expand its local malt production in Romania via construction of a
      green-field malt plant, providing a high quality local raw material source to the
      brewing industry in Romania.


26.   Regional: Heitman Russia & Ukraine Property Partners


•     The Board approved an equity investment of the lesser of USD 45 million
      (EUR 33.7 million equivalent) and 30% of the total capital of Heitman Russia
      and Ukraine Property Partners, a real estate fund sponsored by Heitman Ltd.

•     The operation will mobilise private sector funds to enable the Fund to make
      equity investments in the real estate sector in Russia and Ukraine, with the
      objective of achieving long term capital growth with a focus on development
      projects.


27.   Other Business


•     The Board approved the appointment of Chairs, Vice Chairs and Members of
      Board Committees for a term of one year starting in September 2007.