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CONTENTS - EXIMBANKA SR

VIEWS: 13 PAGES: 96

									CONTENTS


           Foreword from the Governor                       3



           1.   Economic development in Slovakia in 2003    5


           2.   Description of the institution              6


           3.   Business operations

           3.1. Banking activities                          9
           3.2. Insurance activities                       14
           3.3. Environmental aspects
                in EXIMBANKA SR activities                 20
           3.4. Forecast development of EXIMBANKA SR       21


           4.   Financial results and internal economics

           4.1. Financial results and internal
                economics in 2003                          22
           4.2. Development of selected economic
                indicators                                 24


           5.   Financial statements according
                to Slovak Accounting Standards             28

                Auditor’s report                           28
                Balance sheet                              29
                Profit and loss account                    31
                Notes to the financial statements          33


           6.   Financial statements according
                to International Accounting Standards      70

                Auditor’s report                           70
                Balance sheet                              71
                Profit and loss account                    72
                Statement of recognized gains and losses   73
                Cash flow statement                        73
                Notes to the financial statements          74
 D    ear business partners,                  ladies and gentlemen, in 2003 the Export-Import Bank
                                              of the Slovak Republic successfully continued in the track
                                              record of results attained in its preceding seven years.
                                              The volume of exports supported reached SKK 54.6 billion,
                                              representing a 6.8% support of the Slovak export, which
                                              in 2003 reached the record level of SKK 803 billion.
                                              Banking division products featured significantly in the ove-
                                              rall volume of supported export. Their share in the volume
                                              of supported export reached SKK 40.5 billion. The most
                                              popular product constituted re-financing loans, in the
                                              volume of SKK 4 715 million, followed by bill of exchange
                                              transactions in the volume of SKK 1 307 million and
                                              guarantees provided in the amount of SKK 1 024 million.
                                              Insurance activities contributed to export support in the
                                              volume of SKK 14.1 billion, of which the largest number
                                              of cases were realised in the field of marketable risk
                                              insurance. From the aspect of the business activity
                                              of EXIMBANKA SR non-marketable risk insurance was
                                              very significant, totalling SKK 8.1 billion.
                                              EXIMBANKA SR carried out several important internal
                                              changes in 2003. The introduction of a new organisational
                                              structure, strengthening the importance of risk manage-
                                              ment in the financial institution and the creation
                                              of a special unit devoted to small- and medium-sized
                                              enterprise financing, contributed significantly to reducing
                                              general operating costs. In accordance with EU require-
ments we have, since 1. 7. 2003, separated the accounting sections for the insurance of marketable
and non-marketable risks. In the second half of the year a new strategy for EXIMBANKA SR was approved
for the following 5 years and resulting from it the draft legislative amendments to Act No 80/1997
Coll. on EXIMBANKA SR. Our aim was to take account of the requirements placed on EXIMBANKA SR
in connection with the Slovak Republic’s forthcoming accession to the European Union on 1 May 2004
and at the same time to transform it into a modern, specialised financial institution. The preparation for
acquiring a rating from the renowned international institution Moody’s was also directed towards this end.
EXIMBANKA SR, as at the end of 2003, had signed cooperation agreements with 28 similar institutions
around the world. It cooperates most closely with the partner credit insurance company EGAP, a. s.
Praha in the Czech Republic.
The benefits and advantages of cooperation with our institution proved convincing for numerous
Slovak exporters. I should, however, like to make special mention of SES a. s., Tlmače and the shipyards
Slovenské lodenice Komárno, a. s., Bratislava, which EXIMBANKA SR, through full support for their
export activities, helped them achieve positive financial results.                                           FOREWORD FROM THE GOVERNOR
Dear business partners, it has been possible to achieve the results attained in 2003 mainly thanks
to cooperation with you. I believe that the trend of growing interest in our services, which begun
to show over the last year, will continue even more so in the coming period. In this way, together
we will jointly contribute to raising Slovakia’s economic efficiency and our standing in the enlarged
European Union.
In conclusion I wish to thank all our staff, without whom EXIMBANKA SR would not have been able
to meet the goals set in 2003. Thanks clearly belongs also to the members of the Bank Council and
the Supervisory Board, who contributed significantly to fulfilling these goals from the aspect of top
management.




                                                                       Ladislav Vaškovič
                                                                           Governor
                                                                                                                          3
                                      1.
                                      ECONOMIC
                                      DEVELOPMENT
                                      IN SLOVAKIA
                                      IN 2003
                                      Slovak economic development in 2003 took place against
                                      a background of reform measures already underway and
                                      preparations for further economic reforms. Development
                                      was externally influenced by merely sluggish recovery in the
                                      world economy. Despite this, the Slovak economy managed
                                      to achieve relatively high economic growth, thus maintaining
                                      its leading position as the fastest developing economy in the
                                      Central European region.
                                      Gross domestic product in 2003 grew in real terms by 4.2%.
                                      In contrast to 2002, when the stimulus of economic growth
                                      was primarily domestic demand, the main growth factor
                                      in 2003 became foreign demand.



The cost savings and reform measures realised in 2003 dampened end consumption growth, with
a concurrent fall in household consumption (by 0.6%) and concurrently a renewed decline in gross
fixed capital formation (by 1.2%). Domestic demand fell on the previous year in real terms by 2.3%.
The development of foreign trade in 2003 surpassed expectations. This change occurred as a result
of various factors. Strong export growth (by 23.2%) in a recession environment in Slovakia’s main
trading partner countries was a positive result of export-oriented foreign investments made in
preceding years. A significant advance in the rate of export growth over imports led to a fall in the
balance of trade deficit. In comparison with 2002, when the balance of trade deficit moved
around 9% of GDP, in 2003 it fell to 2% of GDP. A positive feature in the development of foreign
trade has been the moderate improvement in the export’s structure in favour of more sophisticated
exports. From the aspect of the territorial structure of foreign trade there continues the tendency
of growth in trade with the European Union, which takes more than 60% of the Slovak export
and is the source of more than 50% of Slovakia’s total import.
On the financial market favourable trends prevailed, characterised by a strengthening of the Slovak
koruna exchange rate and a fall in interest rates.
The development of inflation in 2003 was influenced mainly by administrative adjustments
                                                                                                        ECONOMIC DEVELOPMENT



to regulated prices. The average annual rate of inflation reached 8.5% and average core inflation
was 2.6%.
                                                                                                        IN SLOVAKIA IN 2003




The high rate of unemployment remains a serious problem for the Slovak economy (17.4%),
where a further negative factor is also the high regional differences given by discrepant levels
of economic development in individual regions.

2004 is seen as a year of important reform measures (tax reform, reform of the social and pension
system), which should create a basis for further growth of the Slovak economy. An event of note
in 2004 for the Slovak Republic is its accession to the world political and economic structures
in the form of full membership of the EU and NATO.


                                                                                                            5
                                 2.
                                 DESCRIPTION OF
                                 THE INSTITUTION
                                 Governing bodies
                                 of EXIMBANKA SR in 2003

                                      The Bank Council of EXIMBANKA SR is the
                                 statutory body of EXIMBANKA SR.
                                 On 26 February 2003 the Government of the SR
                                 appointed new members of the Bank Council and
                                 Supervisory Board of EXIMBANKA SR as follows:
                                 Bank Council:
                                 Chairman: Ladislav Vaškovič, (Ing., CSc.)
                                           Governor
                                 Members: Martin Petríček, (Ing., CSc.)
                                          Vice-governor
                                            Peter Vlkolinský, (Ing.)
                                            Vice-governor
                                            Alena Longauerová, (Doc., Ing., CSc.)
                                            Vice-governor
                                            Ladislav Balko, (Doc., JUDr., PhD.)
                                            Gűnter Furin, (Ing.)
                                            Juraj Macháč, (Ing.)
                                 The Governor is the chairman of the Bank Council
                                 and represents EXIMBANKA SR externally.


                                      The Supervisory Board of EXIMBANKA SR is
                                 the supreme control body of EXIMBANKA SR.
DESCRIPTION OF THE INSTITUTION




                                 Supervisory Board:
                                 Chairman: Jana Červenáková, (Ing.)
                                 Members: Ján Ježo, (Ing.)

                                            Stanislava Fejfarová, (Ing., CSc.)
                                            Arpád Hideghéty, (Ing.)
                                            Tibor Katocs, (Ing.)
                                            Alexandra Valachová , (Ing.)
                                            Ján Marušinec, (Ing.)
                                            Eva Kullová, (JUDr.)
                                            (until 18. 6. 2003 ) resigned
                                            Petr Papánek, (Mgr.)
                                            (appointed from 18. 6. 2003 )
                                            Marián Podolák, (Ing.)
6
                         Composition of the Bank Council of EXIMBANKA SR
                         until 26. 2. 2003 :
                         Chairman: Ľudomír Šlahor, (Doc., RNDr., Ing., CSc.)
                                     Governor
                         Members: Martin Petríček, (Ing., CSc.)
                                  Vice-governor
                                    Ladislav Balko, (Doc., JUDr., PhD.)
                                    Vice-governor
                                    Michal Borguľa, (Ing.)
                                    Vice-governor
                                    Štefan Burda, (Ing.)
                                    Juraj Topolčány, (Ing.)


                         Composition of the Supervisory Board of EXIMBANKA SR
                         until 26. 2. 2003
                         Chairman: Hana Laudárová, (Mgr.)

                         Members: Jaroslava Zányiová, (JUDr.)
                                  Imrich Šulák, (Ing.)
                                  Ján Ježo, (Ing.)
                                  Marta Prnová, (Ing.)
                                  Stanislava Fejfarová, (Ing., CSc.)
                                  Vladimír Stanovič, (Ing., CSc.)




Basic data on the institution
The Export-Import Bank of the Slovak Republic was established
by Act No 80/1997 Coll. on the Export-Import Bank of the Slovak Republic
                                                                                DESCRIPTION OF THE INSTITUTION
as amended by Act No 336/1998 Coll. and Act No 214/2000 Coll.

I. Business name: The Export-Import Bank of the Slovak Republic,
                      abbreviated as EXIMBANKA SR
II. Registered office: Grösslingová 1, 813 50 Bratislava
III. Corporate licence no. (IČO): 35 722 959
IV. Date of incorporation: 22. 07. 1997
V. Legal form: Juridical person incorporated in accordance with
                 Act No 80/1997 Coll.




                                                                                               7
                                 Human resources and organisation
                                        The organisational structure of EXIMBANKA SR has been made
                                 significantly more efficient over the past year. Staffing numbers at
                                 EXIMBANKA SR at 31. 12. 2003 were 16.6% lower (88 employees) than the
                                 number as at 31. 12. 2002, where the scope and quality of services provided
                                 were maintained and the client portfolio expanded.
                                        Women held 42% of managerial positions over the past year in
                                 EXIMBANKA SR.
                                        In the framework of training emphasis continued to be placed on further
                                 improving language skills and professional education also in connection
                                 with changing legislation and the approaching accession to the European
                                 Union.




                                 External relations
                                 International cooperation was on the basis
                                 of bilateral cooperation contracts for the
                                 year 2003.

                                 With the aim of creating a firm base for
                                 Slovak exporters, something which is needed
                                 if Slovak products are to expand on world
                                 markets, EXIMBANKA SR concluded several
                                 cooperation contracts in the framework
                                 of banking and insurance activities with the
                                 following world institutions – e.g. the Export
                                 Development Canada, the China Export and
                                 Credit Insurance Corporation, the Development
                                 Bank of Kazakhstan, the Russian Bank
DESCRIPTION OF THE INSTITUTION




                                 for Development and the Bulgarian Export
                                 Credit Insurance Company.




8
                                3.
                                BUSINESS
                                OPERATIONS

                                3.1
                                Banking activities
                                In balancing the results of the past year it may be said
                                that the year 2003 saw further development in the
                                field of banking products supporting Slovak exports.
                                The main product exhibiting a constantly growing
                                trend in 2003 remained re-financing loans; the
                                provision of discount loans continued in an increased
                                extent; the purchase of receivables and guarantees,
                                both approved and provided, recorded a boom, where
                                guarantees are from the long-term aspect becoming
                                a core product of EXIMBANKA SR. Financing was
                                realised with regard to safety. From the point of view
                                of meeting the institution’s strategic goals the bank
                                endeavoured in its banking activities to find a balance
                                in maximising the export supported (the level of which
                                exceeded SKK 40.5 billion), while minimising credit
                                risks. The year 2003 was characterised by an increase
                                on the previous year in the volume of loans provided
                                and guarantees both approved and issued, increased
                                control activity and an across-the-board reduction in
                                interest rates.



Loan products

As regards loan products, EXIMBANKA SR focused mostly on refinancing loans, i. e.
short-term refinancing of up to one year transacted via commercial banks by means
of a tripartite contractual credit agreement between the client, the commercial bank
                                                                                           BUSINESS OPERATIONS




and EXIMBANKA SR. By means of specific-purpose refinancing loan contracts
EXIMBANKA SR cooperated with the following commercial banks and branches of foreign
banks in Slovakia:, Banka Slovakia, a. s., Citibank, a. s., HVB Bank Slovakia, a. s.,
ING Bank N. V., Istrobanka, a. s., Komerční banka Bratislava, a. s., Unibanka, a. s.,
Poštová banka, a. s., Dexia banka, a. s., Tatra banka a. s. and Všeobecná úverová
banka, a. s. We extended our cooperation this year also with Slovenská sporiteľňa, a. s.
Cooperation also with OTP bank, a.s., and Commerzbank, a branch of a foreign bank,
is prepared for the near future.


                                                                                                     9
                       The increased volume of loans was accompanied by a growth in refinancing loans
                       and a fall in direct loans due to the payment of instalments.
                       Expansion of export support activities via refinancing loans is progressing in line with
                       the established strategy of EXIMBANKA SR: growth tendencies continue, while
                       in terms of sectors and commodities export support corresponds to the priorities set
                       out by the Ministry of the Economy SR. Export supported by loan products in 2003
                       amounted to SKK 36 933 million, where support by refinancing loans represents
                       SKK 35 051 million. In terms of the main export markets, the greatest volume
                       of support accompanied exports to the European Union countries and other OECD
                       countries (in total 55.6%), CEFTA (29.9%), South-East Asia (6.9%) and the former CIS
                       countries (4.6%).




                          Guarantees

                          Over the course of 2003 several bank guaran-
                          tees and counter-guarantees were issued, such
                          as guarantees for bids, advance payments,
                          performance bonds, as well as payment
                          guarantees for pre-export financing. At the end
                          of the year EXIMBANKA SR had issued
                          guarantees worth SKK 1 024 million, which
                          translates as export support worth approximately
                          SKK 3 598 million. The approved volume of
                          guarantees in 2003 to be issued to beneficiaries
                          in 2004 amounted to SKK 902 million, thus
                          laying the foundations for an increased volume
                          of export support via guarantee products.
                          Using guarantees EXIMBANKA SR provided
                          support chiefly to exports of the engineering
                          sector (98.6%), where the exports were destined
                          for the territories of South-East Asia (59.9%)
                          and EU together with CEFTA (28%).
                          This year we also introduced a new product
                          intended especially for SMEs, which by means
                          of credit guarantees expands the range of finan-
                          cing options available for the purchase of pro-
 BUSINESS OPERATIONS




                          duction technology for sophisticated – advanced
                          manufactures with higher added value and for
                          pre-export financing of working capital.




10
   Discount loans

   Over the course of 2003 EXIMBANKA SR provided discount loans totalling
   SKK 1 307 million, thus supporting exports worth SKK 1 786 million.
   As regards transactions with bills of exchange, the main focus was on discounting
   promissory notes. In the field of discounting bills of exchange in support of
   SMEs based on the re-purchase of a foreign bill of exchange to one’s own
   order – issued by a commercial bank, the bank, despite intensive acquisition
   activities, did not manage to fulfil its original expectations in the full scope.
   This was due to the weak interest of commercial banks in providing low-volume
   loans, as well as a lack of quality projects and security from the side of exporters.
   A product that has seen increased interest from small and medium-sized enter-
   prises is the repurchase of short-term receivables of exporters using discounting
   bills in support of export, where we repurchased export receivables worth SKK
   305 million. In this way we supported exports in the volume of SKK 357 million.
   Bill of exchange transactions were used to support exports of products primarily
   of light industry (50.8%) and the engineering industry (41.5%), chiefly to the
   countries of the EU (82.9%), CEFTY (6.7%), and of the former CIS (5.7%).




Key indicators in 2003

The bank via its banking activities provided support for exports in the value of SKK
40 531 million, comprising 86.5% for refinancing loans, 8.9% for guarantees, 3.4%
for discounting loans, 0.9% for repurchases of receivables, and 0.4% for direct loans.
The funds of EXIMBANKA SR were used to finance 30 exports of the TOP 100
exporters in Slovakia by export volume.
The year recorded an increase by 6 new clients (large client section); 7 new clients
(SMEs section) and 13 new clients (bill transaction department).




                                    Other activities
                                                                                           BUSINESS OPERATIONS




                                    In the framework of acquisition-promotional
                                    activities that were aimed mainly at SMEs,
                                    our clients were contracted:
                                    • directly,
                                    • via the media,
                                    • in the form of lectures organised by institutions
                                      such as the Slovak Chamber of Commerce
                                      and Industry and the Foreign Trade Institute
                                                                                             11
                       Overview of export support from loans and
                       guarantees provided from EXIMBANKA SR funds as
                       at 31. 12. 2003 / SKK


                                                 86,48%




                                                              0,88%        2,97%   0,42%   0,27%   0,10%    8,88%



                                                     N    refinancing loans                                 35 051 774
                                                     N    guarantees                                         3 597 751
                                                     N    direct loans                                         42 408
                                                     N    promissory notes                                    108 110
                                                     N    discount loans to banks                             170 863
                                                     N    discount loans to clients                          1 203 752
                                                     N    purchases of receivables                            356 590




                       Overview of export support from loans and
                       guarantees provided from EXIMBANKA SR funds as
                       at 31. 12. 2003 by sector / SKK

                                                              11,14%       9,62%   0,17%   8,58%   18,12%     6,72%   3,03%
 BUSINESS OPERATIONS




                                                 25,47%                                              17,15%


                                                     N    light industry                                    10 321 327
                                                     N    electro-technical industry                         4 513 539
                                                     N    wood processing industry                           3 398 018
                                                     N    other industries                                     68 837
                                                     N    metallurgical industry                             3 478 689
                                                     N    chemical industry                                  7 345 505
                                                     N    food processing industry                           2 723 472
                                                     N    building industry                                  1 228 952
12                                                   N    engineering industry                               6 952 909
Overview of export support from loans and
guarantees provided from EXIMBANKA SR funds as
at 31. 12. 2003 by SITC / SKK

              15,24%                   16,58%




     2,13%       0,76%   2,17% 2,42%                          22,76%                 0,03%      37,91%



                                  N    chemicals                                6 177 882
                                  N    beverages and tabacco                     981 427
                                  N    oils and fats                             879 251
                                  N    other                                     307 795
                                  N    foodstuffs                                863 905
                                  N    industrial products                      6 721 306
                                  N    machinery and equipment                  9 225 290
                                  N    market products                         15 363 618
                                  N    raw materials                              10 773




Overview of export support from loans and
guarantees provided from EXIMBANKA SR funds as
at 31. 12. 2003 by territory / SKK




                                                                                                             BUSINESS OPERATIONS




                       55,03%                  0,10% 1,09% 1,87%       6,83%     4,61%      0,80%   29,67%



                                  N    European Union                          22 305 105
                                  N    CEFTA/Visegrad cooperation              12 025 578
                                  N    other OECD                                323 139
                                  N    Former CIS countries                     1 867 294
                                  N    South-East Asia                          2 769 653
                                  N    Other                                     758 522
                                  N    EFTA                                       441 740
                                  N    Middle and Far East                        40 215                       13
                       3.2
                       Insurance activities

                       3.2.1. Export support

                       In 2003 the export support by means of insurance activities of EXIMBANKA SR reached the volume
                       of SKK 14.097 billion, of which 20% was realised with state support and the remaining 80%
                       represented insurance of short-term commercial and combined risks.




                       Comparison of export support for 2001-2003 (SKK ’000)

                                                                                                  2001   2002     2003

                        Short-term commercial and combined risk                               13 187     11 416   11 284

                        Short-term political risk                                                 75      319     1 103

                        Medium a long-term risk                                                    0     6 772    1 710

                        Total                                                                 13 262     18 507   14 097




                                20 000




                                    16 000



                                         12 000


                                             8 000


                                               4 000

                                                        0
 BUSINESS OPERATIONS




                                                                2001
                                                                                    2002
                                                                                                  2003


                                                    N   Short-term commercial and combined risk
                                                    N   Short-term political risk
                                                    N   Medium and long-term risk
                                                    N   Total




14
                The territorial structure of insured export shows the tendency to secure
           the rate of return on payments when supplying to those fields having
           the highest share of the Slovak export. Traditionally, a high share of insured
           export has been destined for Poland, Hungary, Italy, Germany, but also
           to more risky countries such as Cuba, Romania, Russia and the Ukraine.




Territorial structure of export support
from risk insurance for 2003


                                       18,8%                              11,4%          11,4%      7,5%     7,2%




                               24,5%                               2,8%     2,8%       3,4%      4,4%      5,7%



                                               N   Poland                          N   Cuba
                                               N   Luxemburg                       N   Germany
                                               N   Sweden                          N   Romania
                                               N   Hungary                         N   Russia
                                               N   Italy                           N   Other
                                               N   Switzerland




       Of the total value of export support from risk insurance
       for 2003, exports to countries by economic grouping
       is as follows:


       OECD:                                               SKK 9 672.3 mill.
                                                                                                                    BUSINESS OPERATIONS




       CEFTA:                                              SKK 5 797.0 mill.
       EU:                                                 SKK 4 132.8 mill.
       EFTA:                                                 SKK 493.1 mill.
       Near and Middle East:                                  SKK 51.1 mill.
       South-East Asia:                                     SKK 138.9 mill.
       Other*:                                             SKK 3 032.8 mill.
       * countries not included in any grouping




                                                                                                                      15
                                    Similarly as in the previous periods, the commodity grouping of export
                                support shows the largest share of products having the highest share
                                of added value such as market products represented by metal, paper and
                                wood products, and machinery and means of transport.




                       Commodity structure of export support by SITC
                       from risk insurance for 2003


                                                   47%                                                         45,8%




                                                                          1,4%   1,4%      4,4%



                                                          N   6 Market products classified by material
                                                          N   7 Machinery and means of transport
                                                          N   8 Miscellaneous industrial products
                                                          N   5 Chemicals and related products not specified elsewhere
                                                          N   0, 1, 2, 3, 4, 9
 BUSINESS OPERATIONS




16
3.2.2. Insurance with state support

Insurance of medium and long-term export credits

     In the field of the insurance of medium and long-term political and commercial
risks export support for 2003 totalled SKK 1 709.9 million. Three insurance policies
were concluded for insuring export buyer credits for refinancing exports from Slovakia.
Specifically, these concerned exports of power engineering equipment to Cuba
and agricultural machinery to Kazakhstan.


   Over the course of 2003 further export projects to Indonesia, Kazakhstan, Yemen
and Cuba were initiated, the realisation of which is forecast to take place in the course
of 2004.



Insurance of short-term political risks

     In 2003 activities in the field of the insurance of short-term political risks
supported exports totalling SKK 1 103 million, representing a 246% growth on
2002. From a territorial perspective the insured exports went mainly to Luxembourg,
Iran, Saudi Arabia, Turkmenistan, Lithuania and Yemen. In terms of the commodity
structure, supplies of transport equipment and meteorological instruments
dominated.



Credit insurance for financing of export production

     Insurance of credit granted for financing export production covers risks
ensuing from the performance of an export contract by a Slovak exporter. In 2003
one insurance policy was concluded, having the insured value of SKK 90.9 million,
since from August 2003 the provision of this product was suspended.




   Insurance of production risk

        Over the course of 2003 six insurance policies
   were concluded in the field of insuring non-marke-
   table risks to cover losses of Slovak exporters
                                                                                            BUSINESS OPERATIONS




   resulting from production risk in the event that
   a foreign buyer withdraws from an export contract
   during production. The total insured value was
   SKK 137.4 million.




                                                                                              17
                       3.2.3. Insurance of short-term marketable risks

                            In 2003 EXIMBANKA SR created, in connection with the preparation of the
                       Slovakia’s accession to the European Union, a separate centre providing services
                       to exporters supplying their goods and services to the private sector abroad. In
                       connection with this step, the bank separated the monitoring and reporting of the
                       insurance of short-term export credits reinsured in foreign reinsurance markets, i.e.
                       marketable risk. Over the subsequent period the bank provided exporters with
                       insurance of non-payment risk, covering commercial, combined and political risks in
                       the case of deferment of payment of up to one year.
                       EXIMBANKA SR by securing the rate of return on payments from short-term export
                       receivables supported Slovak export at the level of the previous period. Due to the
                       competitive environment and saturation seen in this insurance segment in the case
                       of large exporters, in 2003 increased attention was paid to the sector of small and
                       medium-sized enterprises, traditionally representing more than 70% of insured
                       exporters, though accounting for less than a quarter of export support by short-term
                       insurance. In line with its mission in the field of export support, EXIMBANKA SR
                       successfully continued to offer small and medium-sized clients insurance-financial
                       schemes facilitating this segment of the business public’s access to financial
                       resources.
                       Insurance of short-term marketable risks over the period under consideration was
                       affected especially by such factors as diversification of exporters’ requirements
                       and their interest in coverage of comprehensive risks from a business relationship in
                       connection with the globalisation of world markets, and changes in the portfolio of
                       insured clients.
 BUSINESS OPERATIONS




18
   3.2.4. Reinsurance

        In 2003 EXIMBANKA SR reinsured underwritten risks from insurance of
   short-term export credits on the international reinsurance market pursuant to the
   conditions of the quota reinsurer programme for 2003.




3.2.5. Insurance claims

     During 2003 insured clients of EXIMBANKA SR reported losses amounting to SKK
113.67 million, representing a decline on the preceding year of 35%. This volume
comprised a 61% share of claims related to short-term commercial risk, the remaining
39% were losses related to production risk. Of the total volume of reported losses, claim
values totalling SKK 44.36 (39%) million were successfully recovered during their
investigation, i.e. prior to insurance indemnification.


     In 88% of cases of claims the reason for non-payment from the side of foreign
debtors was an unwillingness to pay, where insolvency was confirmed in 12% of cases.
The highest number of claims was reported in connection with debtors from Poland,
the Czech Republic, Germany, Italy, Serbia and Croatia, from the commodity perspective
the most critical sectors were the steel, wood, engineering, metal-working and paper
industries.
In 2003 the bank paid out indemnities in the total value of SKK 32.64 million, of which
SKK 5.24 million (16%) was from claims reported in 2003 and SKK 27.40 million (84%)
from claims reported in 2002, investigated and liquidated in 2003. In line with the
respective reinsurance programme, claims in the field of insurance of short-term
commercial risk were shared by reinsurers cooperating with EXIMBANKA SR on
a long-term basis.




                                                                                            BUSINESS OPERATIONS




                                                                                              19
                       3.3
                       Environmental aspects in
                       EXIMBANKA SR activities

                       In 2003 EXIMBANKA SR, in the interest of improving the quality of activities in the
                       field of insurance of medium and long-term projects and its harmonisation with
                       rules agreed in the framework of the OECD related to export credits with state
                       support and the environment, carried out several important activities:


                       March 2003              preparation and organisation of a seminar concerning
                                               environmental aspects in activities of export credit insurance
                                               companies. The seminar was organised at the premises of
                                               EXIMBANKA SR in cooperation with the Ministry of Finance
                                               of the Kingdom of the Netherlands and the Dutch credit
                                               insurance company GERLING NCM and with the participation
                                               of the EXIMBANKA SR staff and the Slovak central ministries,


                       September 2003          signing of a Cooperation Agreement on the Environment
                                               between EXIMBANKA SR and the Ministry of the Environ-
                                               ment SR,


                       December 2003           approval of the working procedure for assessing applications
                                               for insurance in medium and long-term projects having
                                               environmental and social impacts in the destination countries
                                               in the respective approval bodies of EXIMBANKA SR,
                                               with the procedure having been applied in practice since
                                               27 January 2004.


                             Since the above date all exporters in Slovakia have been obliged, in the case of
                       projects exceeding a set value, or being from a sensitive sector, or from a sensitive
                       field, to fill out an environmental questionnaire. On the basis of the questionnaire
                       data, compliance with the environmental criteria in carrying out the project will be
                       monitored, which is the condition for granting the state support for credit insurance
                       related to such projects.
 BUSINESS OPERATIONS




                            In 2003 EXIMBANKA SR incorporated into its conditions for credit insurance
                       also measures aimed at the prevention of insuring loans prone to corruption from
                       the side of the insured.




20
3.4
Forecast development
of EXIMBANKA SR
     From the aspect of banking activities, in 2004 the priority fields will continue to be
the provision of refinancing export credits for the support of sophisticated manufactures,
followed by the provision of refinancing import loans for financing the importation of
advanced technology ensuring production with significant export potential, and the
issuing of guarantees. EXIMBANKA SR forecasts the use of guarantees for loans in
order to finance large investment projects of a medium-sized and long-term nature,
as well as of projects of a minor scope that are from the aspect of political risks
contained non-realisable in the commercial sphere, having nevertheless significant
importance in the national economy. Products, the basis of which is created by
discounting bills, will be used by means of commercial banks for pre-export financing
as well as for refinancing of individual larger supplies. Direct financing will be more
significant, this through repurchasing receivables pledged on the basis of the
issuing of bills and insurance by EXIMBANKA SR. Better use and regulation of
banking products will intensify the orientation towards export support in SMEs. At
the same time EXIMBANKA SR also expects the further expansion of its portfolio of
clients, besides the orientation on the current clients, by new exporters.


In the fields of insurance and reinsurance of export credits EXIMBANKA SR expects in
2004 to support the Slovak export by means of the insurance of marketable and
non-marketable risks. EXIMBANKA SR will express its orientation, in accordance with
the pro-export policy of the state supporting the export of products and services with
a high share of added value, in continuing links between its banking and insurance
activities. Credit risk insurance should be a condition for granting direct financing. With
regard to the current competition on the market, ongoing globalisation and expected
increased inflow of foreign investors, in 2004 it will again be necessary to make use of
bonus schemes in connection with the volume of export insured, the claim-free course
of insurance and timely settlement of invoices of insured clients. It is expected that the
trend, prevailing since 2000, of an increasing share of insured risk pertaining to countries
classified as medium and high risk, and of extending insured deferments of payments
will continue. The average rate in 2004 should, depending on the portfolio of insured
territories, the length of payment deferments and the extent of the use of insurance
against combined risk, remain at the level of the years 2001 – 2002.
                                                                                               BUSINESS OPERATIONS




        From the territorial aspect, export support in 2004 by means of credit
   products and guarantees will be oriented on the countries of the European Union
   and of the South-East Asia, and increased activities will be directed towards
   the CIS countries. The territorial focus of export support in 2004 by insurance
   against commercial and combined risks forecasts that most insured exports will
   in 2004 be destined for Poland, Italy, Germany, the USA, Sweden, the Czech
   Republic, Romania and the more risky countries of Croatia, Bulgaria and Israel.

                                                                                                21
                                                       4.
                                                       FINANCIAL
                                                       RESULTS
                                                       AND INTERNAL
                                                       ECONOMICS
                                                       4.1. Financial results and
                                                       internal economics in 2003

                                                       EXIMBANKA’s priority in 2003 was the endeavour to
                                                       ensure a maximum volume of export support, while
                                                       the bank at the same time was rationalising its own
                                                       operations.
                                                       The total balance sheet value of EXIMBANKA SR at the end
                                                       of 2003 was SKK 7 187 419 000, representing a fall
                                                       on the previous year of SKK 732 972 000, which was
                                                       the result of reclassifying collateral operations from
                                                       the balance sheet into off balance sheet accounts.
                         The main assets of EXIMBANKA SR include receivables from loans advanced
                         to banks, which at the end of 2003 totalled SKK 4 734 800 000, thus constituting
                         a 65.9% share in total assets. They comprised mostly refinancing loans to commercial
                         banks in the volume of SKK 4 715 493 000, thus remaining the core export support
                         product of EXIMBANKA SR. Direct financing of clients of EXIMBANKA SR accounted
                         for SKK 828 351 000 and consisted primarily of discount loans worth SKK 824 943 000.
                         In addition to credit activities, EXIMBANKA SR also supported exports through
                         guarantees issued, accounting for SKK 1 024 389 000.
                         An important part of the total assets of EXIMBANKA SR as at the end of 2003 was
                         also formed by financial assets totalling SKK 789 717 000. The largest part of this
                         group of assets was term deposits in commercial banks worth SKK 728 524 000.
                         Another portion of temporarily free funds was invested in the form of government
                         securities amounting to SKK 626 920 000. These funds are determined primarily for
                         covering risks resulting from insurance operations and guarantees.
AND INTERNAL ECONOMICS




                         In 2003 EXIMBANKA SR operated primarily on its own capital and reserves amounting
                         to SKK 4 586 169 000 and with entrusted funds of SKK 1 694 236 000. Similarly
FINANCIAL RESULTS




                         as in 2002, in 2003 EXIMBANKA SR succeeded in acquiring resources on money
                         market, the balance of which at the end of the year reached the level of SKK
                         424 123 000. These resources were used exclusively for financing loans supporting
                         exports.
                         The total expenses of EXIMBANKA SR in 2003 amounted to SKK 550 821 000,
                         representing growth on the previous year of 5.7%. This year-on-year increase in
                         expenditure was mainly due to the creation of reserves and provisions totalling
                         SKK 322 406 000.
                         The total expenses of EXIMBANKA SR were in large part also formed by general opera-
22                       ting costs amounting to SKK 124 159 000, and representing a 12.3% decrease on 2002.
The total revenues of EXIMBANKA SR in 2003 of SKK 646 562 000 recorded
a year-on-year decline of 2.0%. Revenues from financial operations of SKK 385 180 000
accounted for the dominant part of the bank’s total revenues, and comprised
primarily revenues from credit and guarantee related activities and revenues resulting
from the placement of temporarily free resources. Compared to 2002 revenues from
financial operations were 9.8% lower as a result of a general fall in interest rates on
marketable assets.
In 2003 EXIMBANKA SR generated revenues totalling SKK 219 678 000 from the
use of reserves and provisions. Insurance and reinsurance operations related
revenues of SKK 41 441 000 were formed primarily by insurance premiums for the
insurance of short-term loans and on a year-on-year basis were 77.5% lower. This
decline is due to a lower revenues from the underwritten insurance premiums of
medium-term and long-term risks, a result of the non-realisation of several deals.
As a result of the development of revenues and expenses, EXIMBANKA SR in 2003
reported an after tax profit of SKK 95 741 000.




   The results of the development of EXIMBANKA’s
   activities in 2003, reflected in particular in the
                                                                                          AND INTERNAL ECONOMICS

   budgeted level of export support being exceeded,
   as well as the financial results achieved, point
   towards a positive trend in the use of funds
                                                                                          FINANCIAL RESULTS




   available and the ongoing rationalisation of the
   bank’s own operations. This lays strong foundations
   for 2004 with the emphasis on increasing export
   support by means of intensifying business activities
   and on further rationalisation of the bank’s own
   activities.




                                                                                          23
                         4.2.
                         Development of selected economic indicators

                         Development of exports supported by means of EXIMBANKA SR
                         banking and insurance activities for 2001 – 2003

                              EXIMBANKA SR in 2003, through its banking and insurance activities, supported
                         exports accounting for SKK 54.6 billion, representing a 1.4% increase on 2002.
                         This value comprised export support via banking operations in the volume of SKK
                         40.5 billion. (an increase of 14.5%) and insurance activities in the volume of SKK
                         14.1 billion (a fall of 23.8%). The decrease in export support from insurance activities
                         was due to the non-realisation of several medium and long-term deals, where
                         nonetheless their realisation is expected in 2004.




                            in mil. SKK

                               60 000



                                  50 000


                                     40 000


                                          30 000

                                           20 000
                                                                        72
                                                                         0




                                              10 000
                                                                   3 262
                                                                   23 11
                                                                    36 3




                                                                                 53 899
                                                                                          35 392
                                                                                                   18 507




                                                                                                            54 628
                                                                  1




                                                       0
                                                                                                                     40 531

                                                                                                                              14 097




                                                              2001
                                                                                 2002
                                                                                                              2003

                                                   N   EXIMBANKA SR total
                                                   N   by banking activities
                                                   N   by insurance activities
AND INTERNAL ECONOMICS
FINANCIAL RESULTS




 24
Development of total volume of EXIMBANKA SR credit
activities for 2001 - 2003

     The total volume of credit activities as at the end of 2003 reached SKK 5 735.0
million, which compared to 2002 represents an increase of SKK 1 264.9 million, i.e.
28.3%. This figure includes refinancing loans advanced to banks totalling SKK
4 715.5 million, discount loans to banks and clients of SKK 961.9 million, and direct
loans provided to clients in previous years of SKK 57.6 million.

    in mil. SKK
       6 000



           5 000

                                                                                                                                  5 735,0
                  4 000
                               3 927,4                                    4 470,1


                    3 000

                      2 000
                                   as at 3
                                          1. 12.
                                                 2   001
                                                                        as at 3
                                                                               1. 12.
                                                                                      2            002
                                                                                                           as at 3
                                                                                                                  1. 12.
                                                                                                                         2        003



Development of the level of underwritten risks from insurance by
EXIMBANKA SR for 2001 - 2003

      The total amount of underwritten short-term marketable risk as at the end of 2003
totalled SKK 3 653.9 million, which compared to the end of 2002 represents an increase
of SKK 296.5 million, i.e. 7.5%. Insurance of short-term non-marketable risks, and medium
and long-term risks contributed to the value of underwritten risks in the amount of SKK
8 094.1 million, which represents a year-on-year increase of SKK 737.5 million, i.e. 10.0%.

   in mil. SKK
      10 000



            8 000
                                                                                                                                            AND INTERNAL ECONOMICS


                   6 000
                                                                                                                                            FINANCIAL RESULTS




                      4 000
                                                           ,7




                           2 000
                                                     4 58 4
                                                                992,2




                                                                               3 950,4
                                                                                         7 356,6




                                                                                                              3 653,9




                                   0
                                                                                                                        8 094,1




                                        as at 3
                                               1. 12.
                                                      2         001
                                                                        as at 3
                                                                               1. 12.
                                                                                      2002
                                                                                                         as at 3
                                                                                                                1. 12.
                                                                                                                       2003

                              N      from insurance of short-term marketable risks
                              N      from insurance of short-term non-marketable risks
                                     and medium and long-term risks                                                                         25
                         Development of EXIMBANKA SR revenues for 2001 – 2003

                              The total revenues of EXIMBANKA SR in 2003 amounted to SKK 646.6 million,
                         which represents a decline on the previous year of SKK 12.9 million, i.e. 2.0%. The total
                         revenues comprised revenues from credit and guarantee activities of SKK 232.1 million
                         (an increase of 0.6%) and insurance and reinsurance activities related revenues of SKK
                         41.4 million (a fall of 77.5%). This fall was due to the non-realisation of several medium
                         and long-term deals in 2003, which are nonetheless expected to be realised in 2004.




                            in mil. SKK
                                 600




                                          400




                                                200
                                                                  503,2
                                                                 186,9
                                                                30,4



                                                                             659,5
                                                                                     230,7
                                                                                             184,5




                                                      0
                                                                                                     646,6

                                                                                                             232,1

                                                                                                                     41,4

                                                             2001
                                                                             2002
                                                                                                      2003


                                                      N   total revenues
                                                      N   revenues from loan and guarantee activities
                                                      N   revenues from insurance and reinsurance activities
AND INTERNAL ECONOMICS
FINANCIAL RESULTS




26
Development of EXIMBANKA SR expenses for 2001 – 2003

     The total expenses of EXIMBANKA SR in 2003 amounted to SKK 550.8 million,
which represents a growth on 2002 of SKK 29.5 million, i.e. of 5.7%. The increase
occurred mostly due to the creation of reserves and provisions to cover risks in total
of SKK 322.4 million. Total expenses also included general operating costs in the
volume of SKK 124.2 million. (a fall of 12.3% on 2002). Wage costs in 2003 amounted
to SKK 47.2 million, which is a year-on-year growth of 9.7%.




       in mil. SKK
           600



              500


                     400                                                                               AND INTERNAL ECONOMICS
                      300

                           200
                                                                                                       FINANCIAL RESULTS
                                              280,5




                            100
                                             162,7
                                            39,4



                                                         521,3
                                                                 141,5
                                                                         43,1




                                  0
                                                                                550,8

                                                                                        124,2

                                                                                                47,2




                                         2001
                                                         2002
                                                                                 2003


                             N    total expenses
                             N    general operating expenses
                             N    wage costs

                                                                                                       27
                                 5.
                                 FINANCIAL
                                 STATEMENTS
                                 ACCORDING TO
                                 SLOVAK ACCOUNTING
                                 STANDARDS
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




28
Balance sheet as at 31. 12. 2003 (SKK ‘000)

 Designation   ITEMS                                                        Line     2003        2003         2003    Preceding
                                                                            no.      Gross     Correction      Net accounting period

 a             b                                                             c        1            2           3           4

 x             Assets                                                        x         x           x            x          x

 1.            Cash and cash deposits at the
               National Bank of Slovakia                                     1       136           0          136         213

 2.            State bonds without coupons and
               other securities accepted by the
               National Bank of Slovakia for refinancing                     2        0            0           0           0

 3.            Loans and advances to banks                                   3     5 524 381       0        5 524 381 5 170 345

 a)            payable on demand                                             4      61 057         0         61 057     11 007

 b)            other receivables                                             5     5 463 324       0        5 463 324 5 159 338

 4.            Loans and advances to clients                                 6     1 627 092 171 821 1 455 271 1 374 368

 a)            payable on demand                                             7        0            0           0           0

 b)            other receivables                                             8     1 627 092 171 821 1 455 271 1 374 368

 5.            Receivables from insurance
               and reinsurance of export credits                             9      16 803      2 404        14 399     65 453

 6.            Debt securities of                                           10        0            0           0       182 875

 a)            state bodies                                                 11        0            0           0       182 293

 b)            other entities                                               12        0            0           0          582

 7.            Shares, mutual fund certificates, and other capital stakes   13        0            0           0           0

 8.            Shares and ownership interests in commercial
               companies with substantial influence in                      14        0            0           0           0

 a)            banks                                                        15        0            0           0           0

 b)            other entities                                               16        0            0           0           0

 9.            Shares and ownership interests in commercial
               companies with decisive influence in                         17        0            0           0           0

 a)            banks                                                        18        0            0           0           0

 b)            other entities                                               19        0            0           0           0



                                                                                                                                       TO SLOVAK ACCOUNTING STANDARDS
                                                                                                                                       FINANCIAL STATEMENTS ACCORDING
 10.           Intangible assets                                            20     160 314     149 486       10 828     16 446

 a)            incorporation expenses                                       21        0            0           0           0

 b)            goodwill                                                     22        0            0           0           0

 c)            other intangible assets                                      23     160 314     149 486       10 828     16 446

 11.           Tangible assets                                              24     339 294     161 909      177 385    183 824

 a)            land and buildings for the operating activities              25     198 230      36 367      161 863    168 262

 b)            other tangible assets                                        26     141 064     125 542       15 522     15 562

 12.           Other assets                                                 27      52 335      50 855       1 480      31 162

 13.           Prepaid expenses
               and accrued income                                           28      3 539          0         3 539       2 165

 14.           Clearing with state budget of the claim
               to allocation to entrusted financing funds                   29        0            0           0           0

               Total assets                                                 30 7 723 894 536 475 7 187 419 7 026 851
                                                                                                                                       29
                                 Designation ITEM                                                              Line no.            2003              2002

                                 a               b                                                                c                  5                   6

                                 x               Liabilities                                                      x                  x                   x

                                 1.              Loans from banks                                                31              424 123           218 466

                                 a)              payable on demand                                               32                  0                   0

                                 b)              other liabilities                                               33              424 123           218 466

                                 2.              Liabilities from insurance and reinsurance                      34                9 371            8 837

                                 3.              Liabilities to clients                                          35                  0                   0

                                 4.              Liabilities from debt securities                                36                  0                   0

                                 a)              issued debt securities                                          37                  0                   0

                                 b)              other liabilities from debt securities                          38                  0                   0

                                 5.              Other liabilities                                               39               167 291          201 278

                                 6.              Deferred income and accrued expenses                            40                4 257            11 544

                                 7.              Reserves                                                        41              287 336           244 249

                                 a)              legal reserves                                                  42              192 762           198 534

                                 b)              other reserves                                                  43               94 574            45 715
                                 8.              Subordinated financial liabilities                              44                  0                   0

                                 9.              Registered capital                                              45             3 000 000         3 000 000

                                 10.             Reserve funds and other funds from profit                       46              1 417 632        1 363 572

                                 a)              legal reserve fund                                              47              540 910           534 000

                                 b)              other reserve funds                                             48                  0                   0

                                 c)              special-purpose funds created from own financing resources 49                    875 280          828 938

                                 d)              other funds created from profit                                 50                1 442             634

                                 11.             Capital funds                                                   51             1 707 430         1 840 728

                                 a)              special-purpose funds created from entrusted financing resources 52            1 694 236         1 827 534

                                 b)              other capital funds                                             53               13 194            13 194
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                 12.             Valuation differences from conversion of                        54                  0                   0

                                 a)              hedging derivatives                                             55                  0                   0

                                 b)              shares and ownership interests                                  56                  0                   0

                                 13.             Retained earnings or accumulated losses from previous years 57                   74 238                 0

                                 14.             Profit / loss from the current accounting period                58               95 741           138 177

                                                 Total liabilities                                               59              7 187 419        7 026 851


                                       Signature of the statutory body          Signature of the natural person           Signature of the person responsible
                                      or member of the statutory body           responsible for the preparation                    for bookkeeping:
                                             of EXIMBANKA SR:                        of the balance sheet:


                                                                                                                                Ing. Želmíra Príkazská
                                        Ing. Ladislav Vaškovič, CSc.                  Ing. Milota Kocmundová



                                            Ing. Peter Vlkolinský
30
Profit and loss account as at 31. 12. 2003 (SKK ‘000)

 Designation ITEM                                               Line Expenses Expenses Revenues Revenues
                                                                no.    2003     2002     2003     2002

 a          b                                                    c      1        2        3         4

 1.         Interest and similar income, of which                1      x        x      345 786   407 999
            interest from debt securities                        2      x        x       54 924   75 566

 2.         Interest and similar expenses, of which              3    21 210   22 260      x         x
            interest expenses from debt securities               4     7 712   12 173      x         x

 3.         Income from shares and stakes
            in commercial companies                              5      x        x        0         0

 a)         income from shares and ownership interests in
            commercial companies with a substantial influence    6      x        x        0         0

 b)         income from shares and ownership interests
            in commercial companies with decisive influence      7      x        x        0         0

 c)         income from other shares and stakes                  8      x        x        0         0

 4.         Insurance and reinsurance
            related income                                       9      x        x      41 441    184 604

 5.         Insurance and reinsurance
            related expenses                                    10   13 384    25 430      x         x

 6.         Income from fees and commissions                    11      x        x      21 419    18 295
 7.         Expenses related to fees and commission             12     770      728        x         x

 8.         Net profit / loss
            from financial operations                           13    2 131    3 079       x         x
 9.         Other financial income                              14      x        x        0        385
 10.        Other financial expenses                            15      0        0         x         x
 11.        Other operating income                              16      x        x       263        974
 12.        General operating expenses                          17   106 619 108 847       x         x
 a)         employee-related costs                              18   52 588    55 972      x         x
 aa)        wages and salaries                                  19   40 222    43 070      x         x
 ab)        social insurance and health insurance               20   12 366    12 902      x         x
 b)         other general operating expenses                    21    54 031   52 875      x         x
 13.        Other operating expenses                            22    3 953    2 606       x         x



                                                                                                            TO SLOVAK ACCOUNTING STANDARDS
                                                                                                            FINANCIAL STATEMENTS ACCORDING
 14.        Use of reserves and provisions for tangible
            and intangible assets                               23      x        x        0         0

 a)         use of reserves for tangible assets                 24      x        x        0         0

 b)         use of provisions
            for tangible assets                                 25      x        x        0         0

 c)         use of provisions
            for intangible assets                               26      x        x        0         0

 15.        Depreciation, creation of reserves and provisions
            for tangible and intangible assets                  27    20 277   32 892      x         x

 a)         depreciation of tangible assets                     28    14 032   10 457      x         x
 b)         creation reserves for tangible assets               29      0        0         x         x
 c)         creation of provisions for tangible assets          30      0        0         x         x
 d)         depreciation of intangible assets                   31    3 508    22 435      x         x
 e)         creation of provisions
            for intangible assets                               32    2 737      0         x         x
                                                                                                             31
                                 Designation ITEM                                                      Line Expenses Expenses Revenues Revenues
                                                                                                       no.    2003     2002     2003     2002

                                 a              b                                                        c         1          2          3             4

                                 16.            Use of reserves and provisions for receivables,
                                                guarantees, insurance, income from assigned
                                                receivables and income from depreciated receivables 33             x          x      197 218      13 369

                                 a)             use of reserves for receivables, guarantees, insurance 34          x          x       58 663      13 184
                                 b)             use of provisions for receivables
                                                and receivables from guarantees                         35         x          x      138 555       185
                                 c)             income from assigned receivables
                                                and income from depreciated receivables                 36         x          x          0             0
                                 17.            Depreciation, creation of reserves and provisions
                                                for receivables and receivables from guarantees
                                                for insurance and losses from assigned receivables 37         225 723 267 137            x             x

                                 a)             creation of provisions for receivables
                                                and receivables from guarantees
                                                and losses from assigned receivables                    38    169 521      87 572        x             x

                                 b)             creation of reserves for receivables, for insurance
                                                and for receivables from guarantees                     39     56 135     172 310        x             x
                                 c)             depreciation of receivables and depreciation of receivables from payments
                                                for guarantees, losses from assigned receivables      40       67      7 255             x             x
                                 18.            Use of provisions for shares and ownership
                                                interests in commercial companies with
                                                decisive influence and share and ownership
                                                interests in commercial companies with
                                                substantial influence                                   41         x          x          0             0
                                 19.            Creation of provisions for shares and ownership
                                                interests in commercial companies with
                                                decisive influence and shares and ownership
                                                interests in commercial companies with
                                                substantial influence                                   42         0          0          x             x
                                 20.            Use of other reserves                                   43         x          x       22 360      25 929

                                 21.            Creation of other reserves                              44     93 922      31 642        x             x

                                 22.            Use of other provisions                                 45         x          x         100       7 535

                                 23.            Creation of other provisions                            46         91         0          x             x

                                 24.            Profit / loss for accounting period from
                                                ordinary activity before taxation                       47    144 769 170 627            x             x

                                 25.            Extraordinary income                                    48         x          x          0             0
TO SLOVAK ACCOUNTING STANDARDS




                                 26.            Extraordinary expenses                                  49         0          0          x             x
FINANCIAL STATEMENTS ACCORDING




                                 27.            Profit / loss for accounting period from
                                                extraordinary activities before taxation                50         0          0          x             x

                                 28.            Income tax                                              51     49 028      32 450        x             x

                                 29.            Share in profit / loss in subsidiaries
                                                and affiliated companies                                52         0          0          x             x

                                 30.            Profit / loss for accounting period after taxation      53     95 741     138 177        x             x



                                       Signature of the statutory body          Signature of the natural person         Signature of the person responsible
                                      or member of the statutory body           responsible for the preparation                  for bookkeeping:
                                             of EXIMBANKA SR:                    of the profit and loss account:


                                                                                                                              Ing. Želmíra Príkazská
                                        Ing. Ladislav Vaškovič, CSc.                Ing. Milota Kocmundová



32                                          Ing. Peter Vlkolinský
Notes to the financial statements

1. General information

The Export-Import Bank of the Slovak Republic (“EXIMBANKA SR”) was established
on 1 July 1997 under Act No 80/1997 Coll. The registered office of EXIMBANKA SR is
Grösslingová 1, 813 50 Bratislava. It is a juridical person incorporated in the Commercial
Register of District Court Bratislava I, section Po, entry no. 651/B on 22. 7. 1997.

EXIMBANKA SR in accordance with foreign trade, financial, industrial and monetary
policy supports the export and import activities of exporters and importers. Its primary
role is the financing of export and import credits, the insurance and
reinsurance of export credits, the issuing of guarantees, discounting and rediscounting
of bills of exchange and other activities related to its operations.

EXIMBANKA SR is wholly owned by the state. The statutory body of the bank is the
Bank Council. The supreme control body is the Supervisory Board. The Governor
is the Chairman of the Bank Council and represents EXIMBANKA SR externally.



2. Basis for accounting policies

The financial statements were prepared on the basis of accounting administered in
accordance with Act No 431/2002 Coll. on accounting as amended (hereinafter “the
Accounting Act”) and with Measure of the Ministry of Finance of the Slovak Republic
No 20 360/2002-92, laying down the details on accounting procedures and the
framework chart of accounts for the Export-Import Bank of the Slovak Republic.

The financial statements at 31. 12. 2003 have been compiled in accordance with
Measure of the Ministry of Finance of the Slovak Republic no. 21 833/2002-92,
laying down the details on the arrangement, designation of accounting items
of the individual financial statements, the definition of the content of these items
and the scope of data from the financial statements intended for publication
for the Export-Import Bank of the Slovak Republic.




                                                                                             TO SLOVAK ACCOUNTING STANDARDS
                                                                                             FINANCIAL STATEMENTS ACCORDING
On the basis of changes in the binding accounting methodology a transfer bridge
between the accounts for 2002 and 2003 has been prepared, and which has been
used as the basis in compiling the financial statements at 31. 12. 2003 for the
purpose of achieving comparability of the data between the current and preceding
accounting periods.

Figures stated in brackets represent negative values.

These financial statements have been compiled as annual financial statements un-
der Article 17(6) of the Accounting Act.




                                                                                             33
                                 3. Accounting principles and accounting methods

                                 The financial statements have been prepared in accordance with these principles
                                 and methods:

                                 (a) Date of executing the accounting transaction

                                 Depending on the type of transaction, the date of executing the accounting transaction
                                 is mainly the date of paying out or taking receipt of cash, the date of purchase
                                 or sale of financial resources in a foreign currency or securities, the date of executing
                                 a payment from the client’s account, the date of clearing payment orders
                                 of EXIMBANKA SR with the NBS clearing centre, the date of crediting financial
                                 resources according to a bank statement, the date of agreeing and the settlement
                                 date of a securities trade, the date of issuing or taking receipt of a guarantee.
                                 It may also be the date on which there occurs the acquisition or lapsing of ownership,
                                 the occurrence of a receivable or liability, their change or lapsing, the ascertaining
                                 of losses, a shortage, surplus, a movement in assets within EXIMBANKA SR
                                 and other matters that are the subject of accountancy.
                                 Accounting transactions of the purchase or sale of financial assets with a normal
                                 delivery date (spot operations) and other fixed term and option operations from the
                                 time of the agreement date to the settlement date are accounted for in off-balance
                                 sheet accounts and on the settlement date the off-balance sheet entry is cancelled
                                 and accounted for in balance sheet accounts.

                                 The date of executing the accounting transaction for insurance receivables is the date
                                 designated in the insurance policy, and for insurance liabilities it is the date of
                                 recognising the amount of the insurance indemnity. The date of executing
                                 the accounting transaction for reinsurance receivables and liabilities is the date
                                 designated in the reinsurance policy.

                                 (b) Valuation of assets and liabilities

                                 EXIMBANKA SR uses the asset and liability valuation methods stipulated in the
                                 Accounting Act.

                                 As at the date of executing an accounting transaction it values individual components
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                 of its assets and liabilities in the following ways:

                                 1. acquisition price
                                    - tangible and intangible assets,
                                    - supplies,
                                    - securities,
                                    - receivables upon acquisition against payment,
                                    - liabilities upon being taken over,

                                 2. nominal value
                                    - financial resources and stamps and vouchers,
                                    - receivables upon their occurrence,
                                    - liabilities upon their occurrence,

                                 3. replacement acquisition cost
                                    - intangible and tangible assets newly-ascertained upon inventory and as yet not
34                                    recorded in accounts.
As at the date of compiling the financial statements, the fairness of the valuation
of assets and liabilities is assessed and forecast risks, losses and falls in value
concerning assets and liabilities are taken account of. An adjustment of a valuation
to a fair value is made by means of reserves, provisions and depreciations.

Assets and liabilities expressed in a foreign currency are converted to the Slovak
currency at the exchange rate declared by the National Bank of Slovakia as at the date
of executing the accounting transaction and as at the date of compiling the financial
statements. Exchange rate profits or losses from the conversion are stated in the
profit and loss account in the item “Net profit or net loss from financial operations”.

In the purchase or sale of a foreign currency for the Slovak currency in the bank,
EXIMBANKA SR uses the bank’s exchange rate at which these values were bought
or sold.

(c) Tangible and intangible assets

Long-term tangible assets comprise asset components whose entry value is greater
than SKK 30 000 and which have a useful life longer than one year. EXIMBANKA SR
classifies as tangible assets also low-value tangible assets having an acquisition
cost less than SKK 30 000 and a useful life longer than one year.

Long-term intangible assets comprise asset components whose entry value is grea-
ter than SKK 50 000 and which have a useful life longer than one year. EXIMBANKA
SR classifies as intangible assets also low-value intangible assets having an acqui-
sition cost less than SKK 50 000 and a useful life longer than one year.

Assets acquired through a form of financial leasing in preceding accounting periods
are stated in the item “Tangible assets” following the transfer of ownership to
EXIMBANKA SR. EXIMBANKA SR at present does not feature as a lessor or tenant in
financial leasing or in operative asset leasing.

The value of EXIMBANKA SR assets is reduced by depreciation on the basis of a de-
preciation schedule. Accounting depreciation rates of long-term tangible assets are,
with regard to the normal conditions of their use, identical to tax depreciation rates.
Low-value tangible assets and low-value intangible assets are written-off upon being
put into use. Land and works of art are not depreciated.


                                                                                          TO SLOVAK ACCOUNTING STANDARDS
                                                                                          FINANCIAL STATEMENTS ACCORDING



Depreciation periods for individual groups of tangible and intangible assets are
as follows:

                                         Depreciation period:     Depreciation method

 Buildings                                    30 years                straight line

 Technical equipment                        4 až 12 years             straight line

 Means of transport                            4 years                straight line

 Furniture and inventory                       6 years                straight line

 Software                                      4 years                straight line

 Other intangible assets                       4 years                straight line
                                                                                          35
                                 (d) Securities

                                 Securities are grouped, according to the type of their yield, into debt securities
                                 and variable income securities. According to the objective for which they were acquired
                                 they are classified as securities held for trading, available for sale, held to maturity
                                 and acquired in primary issues not intended for trading.

                                 Securities held by EXIMBANKA SR in 2003 comprised debt securities classified
                                 in the portfolio of securities held to maturity and in the portfolio of securities acquired
                                 in primary issues not intended for trading.

                                 Securities acquired in primary issues not intended for trading are stated jointly with
                                 receivables.

                                 Treasury bills, bonds and other debt securities are upon their primary accounting
                                 valued at acquisition cost, including acquisition-related expenses. The acquisition cost
                                 is gradually increased by interest incomes and forms the accumulated value of the
                                 financial asset. Interest incomes are accounted as calculated according to the effective
                                 interest rate method, or in the case of securities having a remaining time period until
                                 maturity on the settlement date of the purchase less than one year according to the
                                 straight line method.

                                 As regards debt securities held to maturity, provisions are created in an amount reflecting
                                 the increase in the credit risk of the issuer, not changes in interest rates on risk-free
                                 financial instruments. They are not created in respect of state bonds and central bank
                                 bonds of states of the Organisation of Economic Cooperation and Development.
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                 EXIMBANKA SR in 2003 did not perform repo trades with securities.

                                 (e) Loans and advances to banks and clients

                                 These receivables are stated in values reduced by provisions.

                                 These receivables are assessed from the aspect of rate of return and are classified
                                 into individual categories.
                                 The procedure of identifying classified receivables is given in point 5 of these Notes.
                                 EXIMBANKA SR accrues interest income from classified receivables without regard
                                 to the length of delay in their repayment. In respect of classified receivables provisions
                                 are created for a temporary reduction in their value. In 2003 reserves were also
                                 created for covering risks contained in receivables from loans.


36
(f) Write-off of receivables

Receivables are written off in the case of a permanent reduction in their valuation,
and this on the basis of a lawful decision of the courts or a decision of the Bank
Council. The Bank Council decides on writing off receivables in these cases:
- if it is clear from all the circumstances of the case that expenses connected with
  recovery (in particular court fees) would evidently exceed the amount of the individual
  receivable,
- if the debtor has died and it is not possible to recover the receivable from his heirs,
- if the receivable has come under the statute of limitations and the debtor has lodged
  an exceptio temporis.
In writing off receivables the provisions created for these receivables are con-
currently applied. Receivables written off, in the case of which the legal claim to their
recovery has not lapsed are recorded in off-balance sheet accounts until the expiry
of the period of limitation.

(g) Creation   of reserves and provisions

Pursuant to the Accounting Act a reserve is a liability of an unspecified amount and
time delimitation. A reserve is created in the case of fulfilling these criteria:
- there exists an obligation to fulfil (legal or actual), which is the result of past events,
- it is likely that the fulfilment will happen and require a decrement of financial
  resources representing economic utility,
- it is possible to make an appropriately reliable estimate of the fulfilments.

The reserves of EXIMBANKA SR in 2003 were legal (created pursuant to Act No
368/1999 Coll. on reserves and provisions for ascertaining the income tax base)
and others. Their cause, the manner of their creation and use have been laid down
in an internal regulation.

The following types of reserves have been created for covering risks and losses
ensuing from banking activities:

Reserves for standard receivables from loans
These were created in the amount of 2% of the average balance of standard loans
and advances to clients and up to 2% of the average balance of standard loans



                                                                                                TO SLOVAK ACCOUNTING STANDARDS
and advances to banks. Pursuant to legislative changes the balances of reserves
for loans that were not created as legal (the reserves for standard loans to clients            FINANCIAL STATEMENTS ACCORDING
with a contractual period to maturity of less than one year and reserves for standard
loans to banks), were as at 31. 12. 2003 cancelled.

Reserves for standard conditioned receivables
These were created up to the amount of 5% of the average balance of standard
conditioned receivables. Pursuant to legislative changes the balance of these
reserves will be transformed in 2004 to a provision by means of the account
Financial result of past years.

Reserves for guarantees issued
These are created in the amount of 2% of the average balance of standard
off-balance sheet liabilities and up to 5% of the average balance of standard
off-balance sheet conditioned liabilities. They are applied partially or fully in the
case of a change to or lapse of a credit risk contained in guarantees issued.
                                                                                                 37
                                 The following types of reserves have been created for covering risks and losses
                                 ensuing from insurance activities:

                                 Unearned premium reserves
                                 Unearned premium reserves are created from part of the premium billing relating to
                                 future accounting periods. They are usually applied by the end of the insurance period,
                                 in the case of the insurance event happening the remaining amount is applied.

                                 Reserves for incurred but not reported claims
                                 Reserves for incurred but not reported claims serve for covering future payment
                                 liabilities from insured events that had not been reported at the balance sheet date.
                                 The reserves are created from part of the premium billing for the whole portfolio of
                                 insurance policies in the estimated amount determined by actuarial methods – the
                                 burden of losses method. They are applied in settling the insurance indemnity.
                                 The balance of reserves is dissolved after four years from their creation, when the
                                 statute of limitations for the exercising insurance rights expires.

                                 Reserves for reported but not yet settled claims
                                 Reserves for reported but not yet settled claims serve for covering future payment
                                 liabilities from insured events that had been reported at the balance sheet date.
                                 They are created from part of the premium billing as the sum of the reserves for
                                 individual insured cases. They are drawn upon payment of the insurance indemnity
                                 or in recovering a receivable prior to the date of indemnification.

                                 Reserves for bonuses and rebates
                                 The reserves for bonuses and rebates serve for covering forecast insurance bonuses
                                 and rebates. The reserves are created from the planned volume of the premium bil-
                                 ling for all clients. They are used in subsequent accounting periods according to the
                                 amount of insurance bonuses and rebates paid out.

                                 Reserves for settlement of extraordinary risks
                                 The reserves for the settlement of extraordinary risks serve for covering fluctuations
                                 in the insurance indemnifications of future years or for covering extraordinary risks.
                                 They are created in an amount determined by the qualified estimate method according
                                 to the level of risk of the insurance administered and the manner of its reinsurance.

                                 The reserves for future liabilities from labour-legal relations and commercial-con-
                                 tractual relations (in particular court disputes against EXIMBANKA SR) serve for
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                 covering risks and losses ensuing from operating activity. They are created up to the
                                 level of risks ascertained. They are used in the case of a change to or lapse of
                                 a liability.

                                 Provisions are created in respect of those asset accounts that are not valued at fair
                                 value, where a fall in the value of the assets accounted for is not of a permanent nature.
                                 Provisions are reduced or cancelled, if the risk for which they were created lapses.




38
   In creating resources for covering risks contained in receivables and off-balance
   sheet liabilities EXIMBANKA SR also takes account of their security, if:
   - in the case of the debtor’s non-performance it can be met from security,
   - it is able to satisfy in an appropriate time following the debtor’s non-performance,
   - the bank takes account of the security at most in the security’s current
     realisable value that it will receive following the deduction of expenses for
     its realisation, only in an amount which does not serve for securing other
     assets or third-party assets, if these third parties are entitled to satisfaction
     prior to EXIMBANKA SR, and at maximum up to the amount of the valuation
     of the secured assets as accounted for.

   In 2003 in creating provisions and reserves it took account of security
   received in the form of state guarantees and financial deposits in favour
   of EXIMBANKA SR.

   (h) Interest, fees, commissions

   Interest, fees and commissions are accounted in the profit and loss account
   up until the period with which they are related temporally and actually. The
   interest income attained and interest expenses relating to assets and liabilities
   are accounted for and stated jointly with these assets and liabilities and are
   a component of the accounting groups in which the assets and liabilities are
   accounted for.




4. Changes to accounting principles and accounting methods

As a result of legislative changes in the field of accounting EXIMBANKA SR in 2003
applied, in comparison to the preceding accounting period, the following new
accounting principles and accounting methods:

(a) Classification and valuation of securities

In the preceding accounting period securities were classified into marketable
(classified in assets for a period of less than one year) and investment. Since
1. 1. 2003 they have been classified according to the objective for which they were


                                                                                            TO SLOVAK ACCOUNTING STANDARDS
                                                                                            FINANCIAL STATEMENTS ACCORDING
acquired: for trading, available for sale, held to maturity and acquired in primary
issues not intended for trading. On the basis of the new security classification
principles EXIMBANKA SR as at 1. 1. 2003 classified the balance of its securities
as at 31. 12. 2002 into the respective portfolios. At the same time it reclassified
from loans to securities securitised assets arisen through the transformation of a loan.

In the preceding accounting period securities were valued at original cost. Since
1. 1. 2003 they have been valued at acquisition cost.

According to the new valuation method the valuation of securities held to maturity
and securities acquired in primary issues not intended for trading is, from
the settlement date of their purchase to their maturity date, progressively increased
by the interest income.

Securities intended for trading and available for sale as at the balance sheet date
are valued at fair value. With regard to the fact that EXIMBANKA SR in 2003 did not         39
                                 own any securities of this type, the transition from historical cost valuation to fair
                                 value has not had an effect on shareholder’s equity.

                                 (b) Classification of assets

                                 In the preceding accounting period the accounting unit accounted for assets to
                                 which it had right of ownership, which applied also in the case of the temporary
                                 acquisition of the right of ownership on the basis of a contract on collateralisation.
                                 Since 1. 1. 2003 the principle applied has been that according to which economic
                                 essence takes precedence over legal form, and in the case of a loan contract during
                                 a period of securing a liability by collateralisation the asset is accounted for by that
                                 accounting unit which uses it.

                                 EXIMBANKA SR secures its receivables ensuing from loans and guarantees provided
                                 also in the form of collateralisation of the liabilities under Article 553 of the Civil
                                 Code or through the assignment of a receivable under Article 554 of the Civil Code.
                                 As at 1. 1. 2003 it transferred the balance of assets acquired into temporary
                                 ownership on the basis of collateral operations in the total volume of SKK 883 067 000
                                 from balance sheet accounts to off-balance sheet accounts, which affected
                                 the amount of the balance sheet total.

                                 (c) Creation and use of reserves

                                 In the preceding accounting period reserves were created for covering risks contained
                                 in assets and liabilities. Under the Accounting Act valid as of 1. 1. 2003 reserves
                                 are liabilities of an unspecified amount and time delimitation; they are thus not
                                 created in respect of balance sheet assets. In 2003 there concurrently applied
                                 for EXIMBANKA SR also Act No 368/1999 Coll. on reserves and provisions for
                                 ascertaining the income tax base, the scope of which related also to reserves
                                 for receivables from loans.

                                 The harmonisation of the mentioned legal regulations was resolved by Methodological
                                 Instruction of the Ministry of Finance SR no. 24 658/2003-92 on the procedure in
                                 the creation and use of reserves, according to which EXIMBANKA SR proceeded
TO SLOVAK ACCOUNTING STANDARDS




                                 in accounting for the balance of reserves created in respect of balance sheet assets
FINANCIAL STATEMENTS ACCORDING




                                 as at 31. 12. 2003.

                                 Pursuant to this methodological instruction EXIMBANKA SR as at 31. 12. 2003
                                 accounted for the balance of reserves at 31. 12. 2002, which had been created
                                 not according to the Accounting Act (other reserves for receivables from loans), in the
                                 total amount of SKK 22 471 000 in favour of account 571 – Undistributed profit from
                                 past years.

                                 (d) Deferred tax

                                 In the preceding accounting period deferred tax was, in the case of entities subject
                                 to consolidation, determined from differences between tax and accounting depre-
                                 ciations of tangible assets. Since 1. 1. 2003 it has been calculated from the tem-
                                 porary differences between the tax base of assets or liabilities and the tangible
                                 assets’ accounting value reported in the balance sheet.
40
   EXIMBANKA SR accounts for a deferred tax receivable, only if it is likely a tax
   base will be achieved that will enable the use of a deferred tax receivable.

   In 2003 EXIMBANKA SR did not account for any deferred tax receivable
   arisen.




5. Financial instruments used

A financial instrument is any legal relationship on the basis of which a financial
asset is created in respect of one contracting party and a financial liability or capital
instrument in respect of another contracting party (for example, loans, deposits, debt
securities, equity securities).

Financial instruments include also derivatives, the value of which is derived from the
value of the instrument secured, an index or reference rate (forwards, futures, swaps,
options). In 2003 EXIMBANKA SR did not use any type of financial derivatives.

Risks connected with financial instruments

The use of financial instruments includes in general the taking over of a risk by or
transfer of a risk to a different entity. The basic types of risk are credit risk, market
risk (interest rate risk and monetary risk), capital risk, liquidity risk.

EXIMBANKA SR devotes extraordinary attention to risk management. It has set clear
and comprehensive principles for risk management, procedures and control
systems, which are regularly re-assessed by the Bank Council.

In the framework of the organisational structure credit risk is monitored by the
strategy and risk management department, the credit committee, the committee for
insurance credit risk and loss events and the Bank Council.

A specific feature of risk management in EXIMBANKA SR is its optimisation (not


                                                                                                TO SLOVAK ACCOUNTING STANDARDS
                                                                                                FINANCIAL STATEMENTS ACCORDING
minimisation) alongside the maximum volume of exports supported.



5.1. Credit risk

Credit risk is the risk that the debtor or counterparty will fail to honour their contractual
obligations. EXIMBANKA SR differentiates direct credit risk (contained in commercial
activities realised in the form of refinancing, direct loans and acceptance credits,
term deposits, bonds) and the risk of credit equivalents (contained in commercial
activities realised in the form of insurance, reinsurance of export credits, the provision
of guarantees).




                                                                                                 41
                                 EXIMBANKA SR manages credit risk:

                                 a) in an active manner, through:
                                     - a comprehensive assessment of the creditworthiness of clients and banks,
                                       territorial and sectoral analyses,
                                     - the setting of individual limits on clients, banks, countries, etc.,
                                     - the acceptance of various forms of security (right of lien, collateralisation,
                                       reinsurance, co-participation of the insured, etc.),
                                     - diversification of assets in the EXIMBANKA SR portfolio,

                                 b) in a passive manner, i.e. through the timely creation of funds for risk coverage.

                                 (a) Concentration of credit risk

                                 A concentration of credit risk arises due to the existence of credit receivables
                                 with similar economic characteristics influencing the debtor’s ability to honour its
                                 obligations. EXIMBANKA SR ensures that its net asset exposure to a single debtor
                                 or a single economically interconnected group of debtors does not exceed 25%
                                 of its own capital and reserves. Significant asset exposure it deems a sum of
                                 receivables to debtors or economically interconnected group of debtors exceeding
                                 10% of its own resources.

                                 With the aim of preventing any concentration of credit risk, EXIMBANKA SR has
                                 created a system of internal limits for the individual banks by means of which
                                 it realises a major part of its deals. These limits are regularly reassessed, taking
                                 also account of the rating from rating agencies – Moody’s Investors Service,
                                 Fitch Ratings, Standard & Poor’s, Capital Intelligence. In measuring credit risk
                                 the bank uses a rating model based on the CAMEL method.

                                 At 31. 12. 2003 there was no concentration of credit risk towards an individual
                                 debtor or economically interconnected group of debtors.
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




42
Classification of assets by the main categories of contractual partners as at 31. 12. 03
                                                                                                    SKK ‘000

 Category of contractual                                     Financial instrument
 partners
                                      Current      Term             Loans           Securities     Total
                                     accounts     deposits         granted

 National Bank of Slovakia               1 411       0                0                 0          1 411

 Komerční banka Bratislava, a. s.          0         0             50 000               0         50 000

 Banka Slovakia a. s.                      0         0             55 000               0         55 000

 HVB Bank Slovakia, a. s.                4 213    159 894         720 000               0        884 107

 Citibank (Slovakia), a. s.              5 989       0            180 542               0        186 531

 ING bank n. v.                           283        0            801 950               0        802 233

 Istrobanka, a. s.                         0         0            315 000               0        315 000

 UniBanka, a. s.                         1 427    12 348          278 267               0        292 042

 Dexia banka Slovensko, a. s.             543     58 301           71 041               0        129 885

 Všeobecná úverová banka, a. s.          6 366      800          1 090 000              0        1 097 166

 Tatra banka, a. s.                        0      77 009         1 073 000              0        1 150 009

 Slovenská sporiteľňa, a. s.               0      340 055         100 000               0        440 055

 OTP Banka Slovensko, a. s.               422        0                0                 0          422

 Československá obchodní banka, a. s. 40 403      80 117              0                 0        120 520

 Loans and advances to banks             61 057   728 524        4 734 800              0        5 524 381

 Public administration – central state     x         x                0             626 920      626 920

 Non-financial private companies           x         x           1 000 172              0        1 000 172

 Loans and advances to clients             x         x           1 000 172          626 920      1 627 092




Assets in the table are stated in the gross amount. At 31. 12. 03 provisions for receivables from
loans to clients were created in the amount of SKK 171 821 000.




                                                                                                               TO SLOVAK ACCOUNTING STANDARDS
                                                                                                               FINANCIAL STATEMENTS ACCORDING




                                                                                                               43
                                 Classification of assets by the main categories of contractual partners as at 31. 12. 2002
                                                                                                                                      SKK ‘000

                                  Category of contractual                                      Financial instrument
                                  partners
                                                                       Current       Term             Loans           Securities     Total
                                                                      accounts      deposits         granted

                                  National Bank of Slovakia                383         0                0                 0          383

                                  Komerční banka Bratislava, a. s.          0          0            220 000               0        220 000

                                  Banka Slovakia a. s.                      0          0            100 000               0        100 000

                                  HVB Bank Slovakia, a. s.                 31      572 579          290 000               0        862 610

                                  Citibank (Slovakia), a. s.                0       80 208          150 639               0        230 847

                                  ING bank n. v.                           115         0            581 936               0        582 051

                                  Istrobanka, a. s.                         0       90 197          464 984               0        555 181

                                  UniBanka, a. s.                          740         0            245 000               0        245 740

                                  Dexia banka Slovensko, a. s.            7 680    150 501           81 075               0        239 256

                                  Všeobecná úverová banka, a. s.          1 772       900          1 003 520              0        1 006 192

                                  Tatra banka, a. s.                        0       73 009          543 700               0        616 709

                                  Slovenská sporiteľňa, a. s.               0      481 090              0                 0        481 090

                                  OTP Banka Slovensko, a. s.               156         0                0                 0          156
                                  Československá obchodní banka, a. s. 130          30 000              0                 0         30 130

                                  Loans and advances to banks             11 007   1 478 484       3 680 854              0        5 170 345

                                  Public administration – central state     x          x                0             915 197      915 197

                                  Non-financial private companies           x          x            782 608             682        783 290

                                  Loans and advances to clients             x          x            782 608           732 904      1 515 512

                                  Debt securities                           x          x                x             182 975      182 975




                                 Assets in the table are stated in the gross amount. At 31. 12. 2002 provisions for receivables from
                                 loans to clients were created in the amount of SKK 141 144 000 and provisions for securities
                                 totalling SKK 100 000.
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




44
Classification of receivables from loans to clients by sector:
                                                                                 SKK ‘000

                                                   2003                   2002

 Agriculture                                      3 722                    593
 Industry                                        993 041                 768 604
 of which:
 food-processing                                  5 490                   5 004
 engineering                                     898 110                 659 391
 electro-technical                                58 275                  91 480
 textile                                          1 169                    284
 wood-processing                                  1 905                     0
 other                                            28 092                 12 445
 Civil engineering                                3 409                   13 411
 Gross receivables                               1 000 172               782 608


All loans granted were to companies incorporated in the Slovak Republic.

Classification of receivables from insurance and reinsurance from the aspect
of contractual partners:
                                                                                 SKK ‘000

                                                           2003           2002

 Private financial companies (the insured)                   0           52 250
 Private non-financial companies (the insured)             8 893          11 151
 Foreign – non-residents (reinsurers)                      7 910          4 149
 Gross receivables                                         16 803        67 550
 Provisions for receivables                                (2 404)        (2 097)
 Net receivables                                           14 399        65 453


Receivables from insured parties arise in the insuring of export credits against
commercial and political risks. The insured were incorporated, or had permanent
residence, in the Slovak Republic.



                                                                                            TO SLOVAK ACCOUNTING STANDARDS
                                                                                            FINANCIAL STATEMENTS ACCORDING
Receivables from reinsurers arise in the reinsuring of export credits. For the purpose
of distributing risk connected with insurance, EXIMBANKA SR had the insured export
credits reinsured on the international reinsurance market (Swiss Re Switzerland,
Partner Re Switzerland, Converium Switzerland, NCM Ireland).


EXIMBANKA SR in 2003 did not operate as an active reinsurer.

(b) Classification of receivables

EXIMBANKA SR classified its receivables according to an internal regulation prepared
in accordance with NBS Measure No 7/2002 on the classification of assets and liabilities
of banks and branches of foreign banks, on the amendment of their valuation, on
the creation and cancellation of reserves and related notifications, taking at the same
time account of the specific features of EXIMBANKA SR. EXIMBANKA SR classifies
receivables and off-balance sheet liabilities as at the last day of a calendar quarter.     45
                                 Loans and advances to banks

                                 Standard receivables
                                 A standard receivable from a bank is a receivable where it is expected that it will
                                 be repaid on time and in the full amount, the bank is not in arrears in repaying
                                 the receivable and is honouring other obligations pursuant to the contract.

                                 Doubtful receivables
                                 A receivable from a bank is deemed doubtful, if an analysis of the debtor indicates
                                 that the receivable will be repaid only partially. A receivable bearing the following
                                 features may also be deemed doubtful:
                                 - the debtor is in arrears with payment of the receivable more than 1 day but less
                                   than 15 days,
                                 - forced administration has been introduced on the debtor.

                                 Bad receivables
                                 A receivable from a bank is deemed bad, if an analysis of the debtor indicates that
                                 the receivable will not be repaid, even partially. A receivable bearing the following
                                 features may also be deemed bad:
                                 - the debtor is in arrears with payment of the receivable more than 15 days,
                                 - the debtor has been granted an extension,
                                 - the NBS has announced the debtor incapable of paying out deposits.

                                 The stated features apply accordingly in the classification of off-balance sheet liabilities.


                                 Receivables from loans and other loans and advances to clients
                                 and receivables from insurance and reinsurance of export credits

                                 Standard receivables
                                 A standard receivable from clients is deemed that in the case of which there is
                                 no doubt as to its full repayment on time. The debtor is in arrears with payment
                                 of the receivable at most 15 days and is honouring other obligations pursuant
                                 to the contract. A receivable from insurance and reinsurance is deemed standard,
                                 if the debtor is not in arrears with payment of the receivable more than 60 days.
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                 Standard conditioned receivables
                                 A standard conditioned receivable from clients is deemed that in respect of which
                                 there is no reason to doubts as to its full repayment, but the client has shown over
                                 the last 360 days economic or financial difficulties. A receivable bearing the follo-
                                 wing features may also be deemed standard conditioned:
                                 - the debtor is in arrears with payment of the receivable more than 15 days, but less
                                   than 60 days,
                                 - the debtor is not honouring an obligation pursuant to the contract other than repayment
                                   of its liability, in particular it has not presented requested statements as to its
                                   economic and financial standing or other data requested pursuant to the contract,
                                 - over the past 180 days the debtor agreed with EXIMBANKA SR a change to the
                                   repayment deadline or its amount without extending the maturity period of the
                                   conditioned receivables, where such a change is a result of an extraordinary instalment.
                                 A receivable from insurance and reinsurance is deemed standard conditioned, if the deb-
46
                                 tor is in arrears with payment of the receivable more than 60 days, but less than 90 days.
Non-standard receivables
A receivable is deemed non-standard, if, on the basis of an analysis of the debtor, its
full repayment is unsure. A receivable bearing the following features may also be
deemed standard:
- the debtor is in arrears with payment of the receivable more than 60 days, but less
  than 90 days,
- EXIMBANKA SR, having performed an assessment of the debtor for the purpose of
  deciding on granting a loan, assigned to the debtor a rating on the basis of which
  EXIMBANKA SR refused the loan application,
- the debtor is in liquidation,
- the receivable arose through performance from security issued for the debtor and
  the debtor’s obligation was payable in instalments.
A receivable from insurance and reinsurance is deemed non-standard, if the debtor
is in arrears with payment of the receivable more than 90 days, but less than
180 days.

Doubtful and disputed receivables
A receivable is deemed doubtful, if an analysis of the debtor indicates that the
receivable will be repaid only partially. A receivable bearing the following features
may also be deemed doubtful:
- the debtor is in arrears with payment of the receivable more than 90 days, but less
  than 360 days,
- the debtor is in settlement proceedings,
- the debtor does not recognise the receivable,
- a proposal for the declaration of bankruptcy has been filed in respect of the debtor’s
  assets and a preliminary bankruptcy administrator appointed,
- the receivable arose as a consequence of an invalid legal act.
A receivable from insurance and reinsurance is deemed doubtful or disputed, if the
debtor is in arrears with payment of the receivable more than 180 days, but less
than 360 days.

Bad receivables
A receivable is deemed bad, if an analysis of the debtor indicates that the receivable
will not be repaid, even partially. A receivable bearing the following features may



                                                                                           TO SLOVAK ACCOUNTING STANDARDS
                                                                                           FINANCIAL STATEMENTS ACCORDING
also be deemed doss-making:
- the debtor is in arrears with payment of the receivable more than 360 days,
- a proposal for the declaration of bankruptcy on debtor’s assets has been rejected
  due to lack of assets,
- bankruptcy has been declared in respect of the debtor’s assets,
- bankruptcy in respect of the debtor’s assets has been cancelled due to a lack of
  assets for covering even the cost of bankruptcy proceedings,
- it is a receivable from an entity having a special relationship to EXIMBANKA SR and
  the arrears with payment are of more than 90 days.
A receivable from insurance and reinsurance is deemed bad, if the debtor is in arrears
with payment of the receivable more than 360 days.


The stated features apply accordingly in the classification of off-balance sheet
liabilities to clients.

                                                                                            47
                                         Receivables from operating activities

                                         Receivables from operating activities are classified into the category standard, if the
                                         debtor is in arrears with payment of the receivable less than 360 days, and into the
                                         category bad, if the debtor is in arrears with payment of the receivable more than
                                         360 days.


                                         The classification system of receivables of EXIMBANKA SR evaluates, besides the
                                         period after maturity, also the quality of management, the debtor’s market standing,
                                         the surrounding environment, security structure and the debtor’s financial indicators.


                                 Classification of receivables and off-balance sheet liabilities by classification category
                                 as at 31. 12. 2003:
                                                                                                                                      SKK ‘000

                                  Type                                                          Category of receivable

                                                                          Standard    Standard Non-standard Doubtful       Bad       Total
                                                                                     conditioned           and disputed

                                  Loans and advances to banks         5 524 381          0           0             0        0      5 524 381

                                  Loans and advances to clients           736 135     98 734      729 520          0      62 703 1 627 092

                                  Receivables from insurance
                                  and reinsurance of export credits       14 398         1          120           241     2 043     16 803

                                  Receivables from operating activities     534          0           0             0      50 855    51 389

                                  Gross receivables                   6 275 448       98 735      729 640         241    115 601 7 219 665

                                  Provision                                  x           x       (116 824)       (241)   (108 015) (225 080)

                                  Net receivables                     6 275 448       98 735      612 816          0      7 586    6 994 585

                                  Off-balance sheet liabilities           315 422     708 967        0             0        0      1 024 389




                                 Classification of receivables and off-balance sheet liabilities by classification category
                                 as at 31. 12. 2002:
                                                                                                                                      SKK ‘000
                                  Type                                                          Category of receivable
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                                                          Standard    Standard Non-standard Doubtful       Bad       Total
                                                                                     conditioned           and disputed

                                  Loans and advances to banks         5 170 345          0           0             0        0      5 170 345

                                  Loans and advances to clients       1 045 363       30 127      383 432          0      56 590 1 515 512

                                  Receivables from insurance
                                  and reinsurance of export credits       65 453         0          55             9      2 033     67 550

                                  Debt securities                         182 293        0          682            0        0      182 975
                                  Receivables from operating activities 2 341            0           0             0      50 764    53 105

                                  Gross receivables                   6 465 795       30 127      384 169          9     109 387 6 989 487

                                  Provision                                  x           x        (84 709)        (9)    (109 387) (194 105)

                                  Net receivables                     6 465 795       30 127      299 460          0        0      6 795 382

                                  Off-balance sheet liabilities       1 611 494          0           0             0        0      1 611 494




48
At 31. 12. 2002 EXIMBANKA SR owned securities arisen through the securitisation
of loans worth SKK 682 000 in gross terms, which were repaid at 31. 12. 2003.


At 31. 12. 2003 EXIMBANKA SR owned a restructured receivable from a client in the
amount of SKK 98 734 000. The receivable was from a discount loan in the case
of which EXIMBANKA SR agreed with the debtor to extend the originally agreed
repayment period. In the restructuring, the receivable was classified into the
category standard conditioned receivables.

(c) Evaluation of security

EXIMBANKA SR requires security for loans and guarantees provided to clients.
Primarily, it accepts the following forms of security:
- cash deposits in favour of EXIMBANKA SR,
- state guarantees,
- securities,
- creditworthy receivables,
- bank guarantees,
- real estate assets,
- movable assets (machinery, equipment, means of transport).


Amount of security accepted by form:
                                                                                SKK ‘000

                                                      2003               2002

 Cash deposits in favour of EXIMBANKA SR            118 571            180 000

 State guarantees                                   284 216            288 090

 Bank guarantees                                   1 052 267               0

 Guarantees from bills of exchange transferred       20 000             20 000

 Bill of exchange collateral                            0                693

 Guarantees on real estate assets                   845 515            905 431

 Guarantees on securities                            92 632            157 000

 Guarantees on movable assets                       950 998            728 307

 ceivables                                          245 200            104 793


                                                                                           TO SLOVAK ACCOUNTING STANDARDS
 Total security accepted                           3 609 399          2 384 314            FINANCIAL STATEMENTS ACCORDING



Accepted cash deposits administered in current accounts and term deposits in
banks are included in balance sheet item “Loans and advances to banks” on the
assets side and in the balance sheet item “Other liabilities” on the liabilities side.
Other forms of security are stated in off-balance sheet liabilities.


In determining the value of a security EXIMBANKA SR relies on independent expert
opinions regularly updated (in the case of real estate assets an expert opinion not
older than 2 years is used, in the case of machinery, equipment, means of transport
not older than 3 years).


                                                                                           49
                                 (d) Calculation of provisions and reserves for receivables andoff-balance sheet liabilities

                                 In calculating provisions EXIMBANKA SR uses as its basis the gross accounting
                                 value of receivables reduced by the realisable value of the security in question. For
                                 the unsecured value of a receivable, it creates provisions in the following amount:


                                                 non-standard                                          20 %

                                                 doubtful and disputed                            50 – 95 %

                                                 bad                                                  100 %


                                 In respect of classified receivables from insurance and reinsurance of export credits
                                 and in respect of bad receivables from operating activities the bank creates provisions
                                 in the amount of 100%.


                                 In 2003 EXIMBANKA SR also created reserves for loans. To cover risks contained in
                                 off-balance sheet liabilities the bank creates reserves according to their classification.
                                 The method of calculating reserves is given in point 3(g) of these Notes.

                                 (e) Recovery of receivables from debtors

                                 EXIMBANKA SR has established a legal services and recovery department by means
                                 of which it performs the recovery of receivables from debtors.


                                 In the case of insured events (claims) receivables from a foreign debtor may be
                                 recovered, depending on the field of influence, level and price of services offered,
                                 via specialised agencies or a legal representative.


                                 In the case of the insurance of medium- and long-term export credits covered from
                                 entrusted funds, EXIMBANKA SR, in recovering receivables, in special case proceeds
                                 in cooperation with the Ministry of Finance SR via the Paris Club.



                                 5.2. Market risk
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                 (a) Interest rate risk

                                 Interest rate risk results from changes in market interest rates. EXIMBANKA SR
                                 manages the interest rate risk through adjusting the structure of its assets and
                                 liabilities so that their sensitivity to changes in interest rates on the market is
                                 approximately balanced, as well as through ensuring an open position with the help
                                 of financial derivatives.


                                 At 31. 12. 2003 EXIMBANKA SR used primarily short-term financial instruments with
                                 a fixed interest rate; in providing loans the bank is entitled to reduce, over the duration
                                 of the loan relationship, the basic interest rate or re-adjust it back to the level of the
                                 basic interest rate according to a decision of the EXIBMANKA SR Bank Council.



50
(b) Currency risk


Currency risk lies in the changing of individual currencies’ exchange rates in the case of different
asset and liability structures in a foreign currency, as well as through the ensuring of an open
position with help of financial derivatives. EXIMBANKA SR maintains the lowest possible open net
foreign exchange position. Limits are set for each currency.

Assets (excluding intangible and tangible assets) and liabilities by balance sheet item
arranged according to individual foreign currencies as at 31. 12. 2003:
                                                                                            SKK ‘000

 type                                     EUR      USD      CHF     other      SKK         total

 Cash                                      53       0        0        7         76         136

 Loans and advances to banks             21 046   39 505     0        0      5 463 830   5 524 381

 Loans and advances to clients          356 960     0        0        0      1 098 311   1 455 271

 Receivables from insurance
 and reinsurance of export credits         32       0       7 876     0        6 491      14 399

 Other assets                              92       20       0        8       1 360       1 480

 Prepaid expenses and accrued income        0       0        0        0       3 539       3 539

 Total assets                           378 183   39 525    7 876    15      6 573 607   6 999 206



 Liabilities to banks                   424 123     0        0        0         0        424 123

 Liabilities from insurance and reinsurance 162     0       8 462     0        747         9 371

 Other liabilities                       22 143   39 509     0        3      105 636     167 291

 Deferred income and accrued expenses 10            3        0        0        4 244       4 257

 Reserves                                11 365   11 911     0       81      263 979     287 336

 Total liabilities                      457 803   51 423    8 462    84      374 606     892 378



 Guarantees issued                      476 006   473 358    0      22 250    52 775     1 024 389

 Total off-balance sheet liabilities    476 006   473 358    0      22 250    52 775     1 024 389




                                                                                                       TO SLOVAK ACCOUNTING STANDARDS
                                                                                                       FINANCIAL STATEMENTS ACCORDING




                                                                                                        51
                                 Assets (excluding intangible and tangible assets) and liabilities by balance sheet item
                                 arranged according to individual foreign currencies as at 31. 12. 2002:
                                                                                                                                    SKK ‘000

                                  type                                     EUR      USD         CHF       other       SKK           total

                                  Cash                                     108       18          0          7          80           213

                                  Loans and advances to banks              132       8           0          0      5 170 205     5 170 345

                                  Loans and advances to clients          172 366     0           0          0      1 202 002     1 374 368

                                  Receivables from insurance
                                  and reinsurance of export credits         5        0         4 144        0        61 304       65 453

                                  Debt securities                           0        0           0          0       182 875       182 875

                                  Other assets                              0        24          0          40       31 098       31 162

                                  Prepaid expenses and accrued income       0        0           0          0        2 165         2 165

                                  Total assets                           172 611     50        4 144        47     6 649 729     6 826 581



                                  Liabilities to banks                   218 466     0           0          0           0         218 466

                                  Liabilities from insurance and reinsurance 22      0         8 455        0         360          8 837

                                  Other liabilities                         21       24          0          13      201 220       201 278

                                  Deferred income and accrued expenses 62            0           0          0        11 482       11 544

                                  Reserves                                4 914    17 812        0          0       221 523       244 249

                                  Total liabilities                      223 485   17 836      8 455        13      434 585       684 374



                                  Guarantees issued                      602 068 1 009 426       0          0           0        1 611 494

                                  Total off-balance sheet liabilities    602 068 1 009 426       0          0           0        1 611 494

                                                                                   Assets are expressed in the amount reduced by provisions.




                                 5.3. Capital risk

                                 Capital risk occurs when the amount of liabilities in market value is higher than market value
                                 of assets. EXIMBANKA SR manages this type of risk through adherence to the limit of the
                                 capital - risk-weighted assets ratio; and through complying with the principles of the classification
                                 of receivables and off-balance sheet liabilities, and through the timely creation of resources for
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                 covering risks (provisions, reserves, special-purpose funds).


                                 A specific insolvency risk in EXIMBANKA SR lies in the risk of insufficient funds in the securing of
                                 potential claims in the case of the maximum adverse burden of loss development. EXIMBANKA SR
                                 manages this risk through the adequate creation of special-purpose funds and insurance reserves
                                 and satisfying the security coverage coefficient of the insurance risks accepted. Special-purpose
                                 funds are applied in those cases where reserves created on an on-going basis for covering risks
                                 will at the moment of paying out insurance indemnities be of an insufficient level.


                                 Capital equipment of EXIMBANKA SR is formed by entrusted funds and own resources.




52
Entrusted resources include state budget funds and are intended for financing export credits and
their insurance. They comprise the following funds:
- export credit financing fund,
- a funds for equalising economic differences from financial market operations,
- a fund for the insurance of short-term export credits against political risks and medium- and
  long-term export credits against political and commercial risks.


Own resources comprise registered capital, the financial result of the current accounting period,
the financial results of past years and the following funds:
- reserve fund,
- guarantee fund,
- fund for covering commercial risks of short-term export credits,
- other special-purpose financial funds (fund for equalising interest rate differences from financial
  market operations).


The capital fund is created from external resources and from resources other than profit.
The balance of and movements in capital, reserves and provisions are given in points 6(f) and (g)
of these Notes.

5.4. Liquidity risk

Liquidity risk results from a lack of resources necessary for fulfilling payable liabilities. EXIMBANKA SR
manages this type of risk through the analysis of asset and liability maturities, of financial
flows, by means of specific ratio liquidity indicators, analysis of daily liquidity, the evaluation of the
liquidity of resources for covering insurance operations.



Remaining time period to maturity of financial assets and liabilities at 31. 12. 2003:
                                                                                                                 SKK ‘000

 Financial assets                                                 Remaining time period to maturity
 and liabilities
                                               Up to 1    1–3         3 months 1 – 5 More than Not              Total
                                               month     months       – 1 year years 5 years specified

 Cash                                           136         0             0        0         0          0       136

 Loans and advances to banks                  821 383    758 158      3 944 840    0         0          0     5 524 381



                                                                                                                            TO SLOVAK ACCOUNTING STANDARDS
                                                                                                                            FINANCIAL STATEMENTS ACCORDING
 Loans and advances to clients                204 402    326 432       919 964     0         0        4 473 1 455 271

 Liabilities from insurance and reinsurance    4 571        0             0        0         0        9 828    14 399

 Other assets                                   375         4             66       0         0        1 035    1 480
 Prepaid expenses and accrued income             47       1 886         1 576      30        0          0      3 539

 Total assets                                 1 030 914 1 086 480     4 866 446    30        0        15 336 6 999 206



 Liabilities to banks                         123 635    111 575       188 913     0         0          0     424 123

 Liabilities from insurance and reinsurance     371        264            0        0         0        8 736     9 371

 Other liabilities                             22 323    33 383        111 585     0         0          0     167 291

 Accrued expenses and deferred income 3                   2 732         1 522      0        0           0      4 257

 Total liabilities                            146 332    147 954       302 020     0        0         8 736   605 042




                                                                                                                            53
                                 Remaining time period to maturity of financial assets and liabilities at 31. 12. 2002:
                                                                                                                                                   SKK ‘000
                                  Financial assets                                                   Remaining time period to maturity
                                  and liabilities
                                                                                Up to 1     1–3         3 months    1 – 5 More than Not            Total
                                                                                month      months       – 1 year    years  5 years specified

                                  Cash                                           213         0             0          0         0         0        213

                                  Loans and advances to banks                  1 267 744   681 926     3 219 775     900        0         0      5 170 345

                                  Loans and advances to clients                 2 253      341 343     1 014 392    13 411      0        2 969 1 374 368
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                  Liabilities from insurance and reinsurance 57 054         4 207          0          0         0        4 192    65 453

                                  Debt securities                                 0         582         182 293       0         0         0      182 875

                                  Other assets                                   858       16 562        11 276       0         0        2 466    31 162

                                  Prepaid expenses and accrued income            279        855          1 022        9         0         0       2 165

                                  Total assets                                 1 328 401 1 045 475 4 428 758        14 320      0        9 627 6 826 581



                                  Liabilities to banks                         218 466       0             0          0         0         0      218 466

                                  Liabilities from insurance and reinsurance     355         0             0          0         0        8 482    8 837

                                  Other liabilities                             34 884      1 864       164 530       0         0         0      201 278

                                  Accrued expenses and deferred income 67                  10 736         741         0         0         0       11 544

                                  Total liabilities                            253 772     12 600       165 271       0         0        8 482   440 125

                                                                                                 Assets are expressed in an amount reduced by provisions.


54
6.
Significant items stated in the balance sheet and profit and loss account

(a) Securities

EXIMBANKA SR acquired, on the primary or secondary market, debt securities issued by the state,
with the intention of holding them to maturity. State bonds were listed on the stock exchange.
In 2002 the bank also owned bills of exchange that originated through the transformation
of loans worth SKK 682 000.
                                                                                              SKK ‘000

 Type of security                                         2003                       2002

                                                 Book            Market     Book            Market
                                                 value           value      value           value

 Treasury bills – primary market                199 369          199 483   313 197          314 728

 Treasury bills – secondary market                0                0       182 293          184 171

 State bonds without coupons – primary market   427 551          428 784     0                0

 State bonds with coupons – primary market        0                0       419 707          422 770

 Other debt securities - securitisation           0                0        682              582

 Gross total securities                         626 920          628 267   915 879          922 251

 Provision                                        0                 x       (100)              x

 Net securities                                 626 920          628 267   915 779          922 251




Securities acquired in primary issues not intended for trading are included in the balance sheet
item “Loans and advances to clients”. Other securities held to maturity are stated in the item
“Debt securities”. The share of debt securities in total assets was 8.7% (in 2002 this figure
was 13%).




                                                                                                         TO SLOVAK ACCOUNTING STANDARDS
                                                                                                         FINANCIAL STATEMENTS ACCORDING




                                                                                                         55
                                 (b) Other assets and other liabilities
                                                                                        SKK ‘000
                                                                           2003       2002

                                  Other cash values                         30         37
                                  Miscellaneous debtors                    1 308      3 022
                                  Receivables from employees                 0       11 275
                                  Operating advances provided             50 081     50 083
                                  Receivables from the state budget          0       16 527
                                  Receivables from social institutions      30         47
                                  Appraisal and redistribution accounts     260        280
                                  Supplies                                  626        655
                                  Gross other assets                      52 335     81 926
                                  Provisions                              (50 855)   (50 764)
                                  Net other assets                         1 480     31 162



                                  Miscellaneous creditors                  5 711      2 190
                                  Liabilities to employees                13 101     14 487

                                  Liabilities to social institutions       1 421      1 602

                                  Other liabilities to clients            120 890    180 114

                                  Liabilities to the state budget         23 463        0

                                  Appraisal accounts                       2 705      2 885

                                  Other liabilities                       167 291    201 278
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




56
(c) Tangible and intangible assets
Summary of tangible assets (TA) and intangible assets (IA) as at 31. 12. 2003:
                                                                                                      SKK ‘000
 Type of asset             Acquisition Additions Disposals Acquisition Adjustments Provision       Net book
                           cost as at     for       for    cost as at as at 31. 12.     as at     value as at
                           1. 1. 2003   2003       2003 31. 12. 2003      2003      31. 12. 2003 31. 12. 2003

 building                  188 230        0         0       188 230      (36 367)       0         151 863

 land                       10 000        0         0       10 000          0           0          10 000

 technical equipment        92 919      7 032       0       99 951       (88 384)       0          11 567

 means of transport         15 031        0         0       15 031       (14 090)       0           941

 furniture and inventory    15 499       37         0       15 536       (13 550)       0          1 986

 works of art                1 028        0         0        1 028          0           0          1 028

 low-value TA                9 030       525       (37)      9 518        (9 518)       0             0

 acquisition of TA             0          0         0          0             x          0             0

 Total TA                  331 737      7 594      (37)     339 294     (161 909)       0         177 385

 software                  146 982       384        0       147 366     (144 748)       0          2 618

 other IA                    1 415        0         0        1 415        (1 415)       0             0
 low-value IA                343         243        0         586         (586)         0             0

 acquisition of IA          10 947        0         0       10 947           x        (2 737)      8 210

 Total IA                  159 687       627        0       160 314     (146 749)     (2 737)      10 828


Summary of tangible assets (TA) and intangible assets (IA) as at 31. 12. 2002:
                                                                                                      SKK ‘000
 Type of asset             Acquisition Additions Disposals Acquisition Adjustments Provision  Net book
                           cost as at     for       for    cost as at as at 31. 12. as at    value as at
                           1. 1. 2002 2002         2002 31. 12. 2002      2002 31. 12. 2002 31. 12. 2002

 building                   188 155      75         0       188 230      (29 968)       0         158 262

 land                        10 000       0         0       10 000          0           0          10 000

 technical equipment         92 927     7 464    (7 472)    92 919       (84 137)       0          8 782

 means of transport          15 970     1 505    (2 444)    15 031       (13 413)       0          1 618

 furniture and inventory     15 206      293        0       15 499       (11 365)       0          4 134

 works of art                 879        149        0        1 028          0           0          1 028




                                                                                                                 TO SLOVAK ACCOUNTING STANDARDS
                                                                                                                 FINANCIAL STATEMENTS ACCORDING
 low-value TA                8 880       558      (408)      9 030       (9 030)        0             0

 acquisition of TA             21         0        (21)        0            0           0             0

 Total TA                   332 038    10 044    (10 345)   331 737     (147 913)       0         183 824

 software                   144 021     3 048      (87)     146 982     (141 483)       0          5 499

 other IA                    1 415        0         0        1 415        (1 415)       0             0

 low-value IA                 319        24         0         343         (343)         0             0

 acquisition of IA           10 947       0         0       10 947          0           0          10 947

 Total IA                   156 702     3 072      (87)     159 687     (143 241)       0          16 446


(d) Write-off of imprescripted receivables

In 2003 EXIMBANKA SR, on the basis of court decisions on the cancellation or rejection of bankruptcy,
wrote off to the debit of other operating costs non-recoverable receivables from insurance activities
accounting for SKK 67 000. In 2002 it wrote off receivables from insurance activities in the value
of SKK 120 000 (of which SKK 107 000 on the basis of court decisions on the cancellation                          57
or rejection of bankruptcy, SKK 13 000 on the basis of decisions of the Bank Council).
                                 In 2003 EXIMBANKA SR did not write off any receivables from banking and operating activities.
                                 In 2002 it wrote off, on the basis of a decision by the Bank Council, a receivable from unpaid
                                 securities in the amount of SKK 7 135 000.

                                 In writing off receivables, provisions created for such receivables were applied.

                                 (e) Loans received

                                 EXIMBANKA SR received a loan from a commercial bank for refinancing and other forms of export
                                 credit refinancing provided by EXIMBANKA SR to its clients. The loan was drawn in the form of
                                 short-term provisions of financial resources in a foreign currency with a maturity of up to 1 year.
                                 The loan was not secured. As at 31. 12. 2003 the liability totalled SKK 424 132 000 (in 2002 the
                                 figure was SKK 218 466 000).

                                 The loan is stated in the balance sheet item “Liabilities to banks” and the undrawn principal in the
                                 off-balance sheet item “Liabilities from accrued loans”.

                                 (f) Reserves and provisions



                                 Balance of and movements in reserves in 2003 by type:
                                                                                                                                                 SKK ‘000
                                  type of reserve                           balance as at   creation    use          foreign exchange       balance as at
                                                                             1. 1. 2003                          difference from conversion 31. 12. 2003

                                  Reserve for loans with contractual
                                  maturity of more than 1 year                  308            0        (308)              0                     0

                                  Reserve for standard conditioned
                                  receivables                                   992         16 484 (15 816)              (335)                1 325

                                  Reserve for guarantees issued               22 726         6 624     (7 855)          (2 909)              18 586

                                  Reserve for accrued insurance premiums      151 944        4 282 (27 693)                0                 128 533

                                  Reserve for insurance indemnity
                                  incurred but not reported                   17 300        24 700     (6 727)             0                 35 273

                                  Reserve for insurance indemnity
                                  reported but not yet settled                   0           4 045       0                 0                  4 045

                                  Reserve for insurance bonuses and rebates    5 264           0        (264)              0                  5 000

                                  Total legal reserves                        198 534       56 135 (58 663)             (3 244)              192 762
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                  Reserve for loans with contractual
                                  maturity of less than 1 year to clients      2 417           0       (2 417)             0                     0

                                  Reserve for standard receivables
                                  from banks                                  20 054         2 710 (22 764)                0                     0

                                  Reserve for guarantees issued                  0           6 213     (664)             (232)                5 317
                                  Reserve for accrued insurance premiums        196            0       (196)               0                     0

                                  Reserve for insurance indemnity
                                  incurred but not reported                    5 000           0       (5 000)             0                     0

                                  Reserve for insurance indemnity
                                  reported but not yet settled                 4 029        36 028 (4 915)                 0                 35 142

                                  Reserve for liabilities from operating
                                  activities (court disputes)                 14 019        48 971 (8 875)                 0                 54 115

                                  Total other reserves                        45 715        93 922 (44 831)              (232)               94 574

58                                Total reserves                              244 249       150 057(103 494)            (3 476)             287 336
Reserves from insurance activities in the table are expressed in an amount reduced by assigned
reinsurance.

Expenses for the creation of legal reserves are stated in the profit and loss account, in the item
“Creation of reserves for receivables, for insurance and for receivables from guarantees”,
expenses for the creation of other reserves are in the item “Creation of other reserves”.

Income from the use of legal reserves is stated in the profit and loss account in the item “Use of
reserves for receivables, guarantees, insurance”, income from the use of other reserves is stated
in the item “Use of other reserves” in the amount of SKK 22 360 000.

The balance of other reserves for loans as at 31. 12. 2002 in the amount of SKK 22 471 000,
which were created not pursuant to the Accounting Act, were reclassified as at 31. 12. 2003
in favour of the account Retained profit from the past years.


Balance of and movements in reserves in 2002 by type:
                                                                                                               SKK ‘000
 type of reserve                           balance as at   creation    use         foreign exchange       balance as at
                                            1. 1. 2002                         difference from conversion 31. 12. 2002

 Reserve for loans with contractual
 maturity of more than 1 year                   468           0        (160)              0                 308

 Reserve for standard
 conditioned receivables                         0          992          0                0                 992

 Reserve for guarantees issued                 9 308       15 187        0             (1 769)            22 726

 Reserve for accrued insurance premiums       20 331       137 331    (5 718)             0               151 944

 Reserve for insurance indemnity
 incurred but not reported                     6 000       15 800     (4 500)             0               17 300

 Reserve for insurance bonuses and rebates     5 070        3 000     (2 806)             0                5 264

 Total legal reserves                         41 177       172 310    (13 184)         (1 769)            198 534

 Reserve for loans with contractual
 maturity of less than 1 year to clients         0          2 417        0                0                2 417

 Reserve for standard
 receivables from banks                       17 114        2 940        0                0               20 054

 Reserve for accrued insurance premiums        5 596          0       (5 400)             0                 196

 Reserve for insurance indemnity



                                                                                                                          TO SLOVAK ACCOUNTING STANDARDS
                                                                                                                          FINANCIAL STATEMENTS ACCORDING
 incurred but not reported                    17 060          0       (12 060)            0                5 000

 Reserve for insurance indemnity
 reported but not yet settled                   232        12 266     (8 469)             0                4 029

 Reserve for liabilities from operating
 activities (court disputes)                     0         14 019        0                0               14 019

 Total other reserves                         40 002       31 642     (25 929)            0               45 715

 Total reserves                               81 179       203 952    (39 113)         (1 769)            244 249




                                                                                                                          59
                                 Balance of and movements in provisions in 2003 by the asset for which they were created:
                                                                                                                                                SKK ‘000
                                  type of provision                       balance as at creation      use        foreign exchange         balance as at
                                                                           1. 1. 2003                        difference from conversion   31. 12. 2003

                                  Provisions for classified loans and
                                  other loans and advances to clients       141 144     169 026 (138 367)               18                  171 821

                                  Provisions for classified receivables
                                  from insurance of export credits           2 097        495        (188)              0                    2 404

                                  Provision for
                                  debt securities                             100          0         (100)              0                      0

                                  Provision for receivables
                                  from operating activities                  50 764        91            0              0                   50 855

                                  Provision for
                                  acquisition of IA                            0         2 737           0              0                    2 737

                                  Total provisions                          194 105     172 349 (138 655)               18                  227 817




                                 Expenses for the creation of provisions for loans and advances to clients and for receivables from
                                 insurance and reinsurance are stated in the item “Creation of provisions for receivables
                                 and receivables from guarantees and loss from assigned receivables”. Expenses for the creation
                                 of provisions for debt securities and for receivables from operating activities are stated in the item
                                 “Creation of other provisions”.


                                 Income from the use of provisions is reported accordingly.


                                 Balance of and movements in provisions in 2002 by the asset for which they were created:
                                                                                                                                                SKK ‘000

                                  type of provision                       balance as at creation    use          foreign exchange         balance as at
                                                                           1. 1. 2002                        difference from conversion   31. 12. 2002

                                  Provisions for classified loans and
                                  other loans and advances to clients       53 823      87 321       0                  0                   141 144

                                  Provisions for classified receivables
                                  from insurance of export credits           2 031        251      (185)                0                    2 097

                                  Provision for
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                  debt securities                            7 635         0       (7 535)              0                     100

                                  Provision for receivables
                                  from operating activities                 50 764         0         0                  0                   50 764

                                  Total provisions                          114 253     87 572 (7 720)                  0                   194 105




60
(g) Capital

Balance of and movements in capital in 2003:
                                                                                                         SKK ‘000

 Capital                                                    balance as at   creation     use       balance as at
                                                             1. 1. 2003                            31. 12. 2003

 Export credit financing fund                                 500 000          0          0          500 000

 Fund for equalising economic differences
 from financial market operations                             133 298          0       (133 298)        0

 Fund for insurance of short-term export credits against
 political risks and medium- and long-term export credits
 against political and commercial risks.                     1 194 236         0          0         1 194 236

 Capital fund                                                 13 194           0          0          13 194

 Total capital funds                                         1 840 728         0       (133 298)    1 707 430

 Guarantee fund                                               587 831          0         (95)        587 736

 Fund for covering commercial risks
 of short-term export credits                                 241 107          0          0          241 107

 Fund for equalising interest rate differences
 from financial market operations                                0          56 000      (9 563)      46 437

 Other funds created from profit                                634          8 004      (7 196)       1 442

 Reserve fund                                                 534 000        6 910        0          540 910

 Total reserve funds and other funds from profit             1 363 572      70 914     (16 854)     1 417 632
 Registered capital                                          3 000 000         0          0         3 000 000

 Financial results of past years                                 0          130 238    (56 000)      74 238

 Financial result in approval proceedings                     138 177          0       (138 177)        0

 Financial result of current year                                0          95 741        0          95 741

 Total capital equipment                                     6 342 477      296 893    (344 329)    6 295 041




                                                                                                                    TO SLOVAK ACCOUNTING STANDARDS
                                                                                                                    FINANCIAL STATEMENTS ACCORDING




                                                                                                                     61
                                 Balance of and movements in capital in 2002:
                                                                                                                                          SKK ‘000

                                  Capital                                                    balance as at   creation     use       balance as at
                                                                                              1. 1. 2002                            31. 12. 2002

                                  Export credit financing fund                                 500 000          0          0          500 000

                                  Fund for equalising economic differences
                                  from financial market operations                             145 777          0       (12 479)      133 298

                                  Fund for insurance of short-term export credits against
                                  political risks and medium- and long-term export credits
                                  against political and commercial risks                      1 194 236         0          0         1 194 236

                                  Capital fund                                                 15 540           0        (2 346)      13 194

                                  Total capital funds                                         1 855 553         0       (14 825)     1 840 728

                                  Guarantee fund                                               584 438        3 806       (413)       587 831

                                  Fund for covering commercial risks
                                  of short-term export credits                                 241 107          0          0          241 107

                                  Fund for equalising interest rate differences
                                  from financial market operations                                0             0          0             0

                                  Other funds created from profit                               2 767         2 003      (4 136)        634

                                  Reserve fund                                                 437 159       96 841        0          534 000

                                  Total reserve funds and other funds from profit             1 265 471      102 650     (4 549)     1 363 572

                                  Registered capital                                          2 670 000      330 000       0         3 000 000

                                  Financial results of past years                              224 170       100 000    (324 170)        0

                                  Financial result in approval proceedings                     222 648          0       (222 648)        0

                                  Financial result of current year                                0          138 177       0          138 177

                                  Total capital equipment                                     6 237 842      670 827    (566 192)    6 342 477



                                 (h) Use of profit

                                 use of profit for the preceding accounting period:
                                                                                                                                          SKK ‘000

                                  Profit available for 2002                                                                              138 177

                                  transfer to reserve fund                                                                                6 910
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                  transfer to social fund                                                                                    500

                                  transfer to remuneration fund                                                                          19 000

                                  transfer to representation fund                                                                         4 000

                                  retained profit from 2002                                                                              107 767



                                 The distribution of the profit for 2002 was approved by the Ministry of Finance SR on 19. 8. 2003.
                                 In 2003 retained profit resources of SKK 56 000 000 were transferred to the fund for equalising
                                 interest rate differences from financial market operations.




62
proposal for use of the profit for the current accounting period:
                                                                                                   SKK ‘000

 Profit available for 2003                                                                        95 741

 transfer to social fund                                                                           500

 transfer to remuneration fund                                                                     9 500

 transfer to representation fund                                                                   3 200

 transfer to the fund for equalising interest rate differences from financial market operations   13 400

 transfer to the fund for insurance of medium- and long-term export credits
 against political and commercial risks                                                           20 000

 retained profit from 2003                                                                        49 141



(i) Interest income and expenses
                                                                                                   SKK ‘000

                                                                                  2003             2002

 interest from loans advanced to banks                                          163 983           171 405

 interest from loans provided to clients                                        46 692            40 636

 interest from deposits in banks                                                80 187            120 392

 interest from debt securities                                                  54 924            75 566

 interest income                                                                345 786           407 999



 interest from loans received from banks                                         7 886             8 893

 debit interest from deposits in banks                                              4               0

 interest from debt securities                                                   7 712            12 173

 interest from other financial operations                                        5 608             1 194

 interest expenses                                                              21 210            22 260



(j) Fees and commissions
                                                                                                   SKK ‘000

                                                                                 2003              2002



                                                                                                              TO SLOVAK ACCOUNTING STANDARDS
 loan-related fees                                                               2 053             670        FINANCIAL STATEMENTS ACCORDING
 fees for guarantees issued                                                     19 366            17 625

 income from fees and commissions                                               21 419            18 295



 fees from interbank operations                                                   769              602

 fees for the safe-keeping of valuables in banks                                    1              126

 expenses for fees and commissions                                                770              728




                                                                                                              63
                                 (k) General and other operating expenses
                                                                                                                 SKK ‘000

                                                                                                 2003            2002

                                  Employee costs                                                52 588          55 972

                                  of which:

                                  wages and remunerations to employees                          40 111          42 410

                                  other personnel expenses                                       111              660

                                  social and health insurance                                   12 366          12 902



                                  Other general operating expenses                              54 031          52 875

                                  of which:

                                  severance                                                     2 644              0

                                  managerial severance remuneration                             2 134              0

                                  other social-care expenses                                    1 292            1 537

                                  court and out-of-court settlements                            2 225              0

                                  taxes and fees                                                 393              255

                                  audit costs                                                   1 456            1 466

                                  legal consultancy expenses                                    1 100            1 523

                                  other acts purchased                                          42 787          48 094



                                  Other operating expenses                                      3 953            2 606

                                  of which:

                                  insurance premiums                                            1 124            1 102

                                  remunerations to members of EXIMBANKA SR bodies                626             1 008

                                  contributions to associations                                  721              418

                                  penalties                                                     1 131              0

                                  expenses from transfer of TA                                    0               13

                                  other operating expenses                                       351              65
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                 The average number of employees in 2003 was 96 (in 2002 the figure was 102).


                                 (l) Corporate income tax payable
                                                                                                                 SKK ‘000

                                                                                                2003             2002

                                  Profit for the current accounting period before taxation     144 596          170 627

                                  Non-taxable income                                           (77 120)         (98 770)

                                  Tax non-deductible expenses                                  128 879          58 710

                                  Other items                                                   (935)            (766)

                                  Subtotal                                                     195 420          129 801



                                  Corporate income tax payable at 25%                           48 855          32 450
                                  Additional income tax levies                                   173               0
64                                Total income tax                                              49 028          32 450
7.
Off-balance sheet

(a) Guarantees issued

For the purpose of supporting pro-export activities, EXIMBANKA SR provided exporters the
following types of payment and non-payment guarantees:

                                                                                SKK ‘000

                                                           2003               2002

 for repayment of a loan                                 167 235                0

 for a bid                                                32 234             57 770

 for return of advance payment                           427 183           1 117 465

 for good performance                                    320 612            405 073

 for warranty period                                      70 201             31 186

 for retainer fees                                        6 924                 0

 total guarantees issued                                1 024 389          1 611 494




                                                                                           TO SLOVAK ACCOUNTING STANDARDS
                                                                                           FINANCIAL STATEMENTS ACCORDING




                                                                                           65
                                 (b) Classification of off-balance sheet items


                                  Designation   ITEM                                            Line no.         Accounting period
                                                                                                            current           preceding

                                  a             b                                                  c          1                  2

                                  x             Off-balance sheet assets                           x           x                 x

                                  1.            Receivables from accrued loans and guarantees      1       1 024 389         1 611 494

                                  1.a           receivables from accrued loans                     2          0                  0

                                  1.b           guarantees and collateral issued                   3       1 024 389         1 611 494

                                  2.            Guarantees issued                                  4          0                  0

                                  2.a           real estate assets                                 5          0                  0

                                  2.b           cash                                               6          0                  0

                                  2.c           securities                                         7          0                  0

                                  2.d           other                                              8          0                  0

                                  3.            Receivables from spot operations with              9          0                  0

                                  3.a           interest rate instruments                         10          0                  0
                                  3.b           monetary instruments                              11          0                  0

                                  3.c           equity instruments                                12          0                  0

                                  3.d           commodity instruments                             13          0                  0

                                  3.e           credit instruments                                14          0                  0

                                  4.            Receivables from fixed-term operations with       15          0                  0

                                  4.a           interest rate instruments                         16          0                  0

                                  4.b           monetary instruments                              17          0                  0

                                  4.c           equity instruments                                18          0                  0

                                  4.d           commodity instruments                             19          0                  0

                                  4.e           credit instruments                                20          0                  0

                                  5.            Receivables from operations with options with     21          0                  0

                                  5.a           interest rate instruments                         22          0                  0

                                  5.b           monetary instruments                              23          0                  0

                                  5.c           equity instruments                                24          0                  0
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




                                  5.d           commodity instruments                             25          0                  0

                                  5.e           credit instruments                                26          0                  0

                                  6.            Receivables written off                           27          76                 76

                                  7.            Valuables handed over to safe-keeping,
                                                administration and storage                        28          0                  0

                                  8.            Valuables handed over for handling, of which      29       545 112            778 275
                                                securities                                        30          0                  0




66
Designation   ITEM                                            Line no.         Accounting period
                                                                          current           preceding

a             b                                                  c          3                  4

x             Off-balance sheet liabilities                      x           x                 x

1.            Liabilities from accrued loans and guarantees     31       1 630 848          465 923

1.a           liabilities from accrued loans                    32       274 365            157 140

1.b           guarantees and collateral received                33       1 356 483          308 783

2.            Guarantees received                               34       2 134 345         1 895 531
2.a           real estate assets                                35       845 515            905 431

2.b           cash                                              36          0                  0

2.c           securities                                        37        92 632            157 000

2.d           other                                             38       1 196 198          833 100

2.e           collaterals - securities                          39          0                  0

3.            Liabilities from spot operations with             40          0                  0

3.a           interest rate instruments                         41          0                  0

3.b           monetary instruments                              42          0                  0

3.c           equity instruments                                43          0                  0

3.d           commodity instruments                             44          0                  0

3.e           credit instruments                                45          0                  0

4.            Liabilities from fixed-term operations with       46          0                  0

4.a           interest rate instruments                          47         0                  0

4.b           monetary instruments                              48          0                  0

4.c           equity instruments                                49          0                  0

4.d           commodity instruments                             50          0                  0

4.e           credit instruments                                51          0                  0
5.            Liabilities from operations with options with     52          0                  0

5.a           interest rate instruments                         53          0                  0

5.b           monetary instruments                              54          0                  0



                                                                                                        TO SLOVAK ACCOUNTING STANDARDS
                                                                                                        FINANCIAL STATEMENTS ACCORDING
5.c           equity instruments                                55          0                  0

5.d           commodity instruments                             56          0                  0

5.e           credit instruments                                57          0                  0

6.            Valuables taken into safe-keeping, of which       58          0                  0
              securities                                        59          0                  0




                                                                                                         67
                                 8.
                                 Entities with a special relationship to EXIMBANKA SR

                                 Pursuant to Act No 80/1997 Coll. on Export-Import Bank of the Slovak Republic as later amended,
                                 entities having a special relationship to EXIMBANKA SR are be deemed members of the Bank
                                 Council, members of the Supervisory Board, entities close to the members of the Bank Council
                                 and the Supervisory Board and members of an advisory committee. Over the course of 2003
                                 EXIMBANKA SR did not record any exposure to such entities.
TO SLOVAK ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING




68
9.
Events occurring after 31 December 2003

On 24 February 2004 the international rating agency Moody’s Investors Service granted
EXIMBANKA SR a deposit rating at the level of A3 / Prime-2, this being the same rating given to
the SR. The obtaining of a rating from a renowned agency was part of EXIMBANKA SR’s strategy
and is a prerequisite for facilitating the acquisition of funds on the financial markets.



   Signature of the statutory body   Signature of the natural person    Signature of the person responsible
  or member of the statutory body    responsible for the preparation             for bookkeeping:
         of EXIMBANKA SR:             of the profit and loss account:


                                                                              Ing. Želmíra Príkazská
    Ing. Ladislav Vaškovič, CSc.        Ing. Milota Kocmundová



        Ing. Peter Vlkolinský




                                                                                                              TO SLOVAK ACCOUNTING STANDARDS
                                                                                                              FINANCIAL STATEMENTS ACCORDING




                                                                                                              69
                                     6. FINANCIAL
                                     STATEMENTS
                                     ACCORDING TO
                                     INTERNATIONAL
                                     ACCOUNTING
                                     STANDARDS
INTERNATIONAL ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING TO




70
Balance sheet at 31 December 2003

                                                           Notes            2003           2002
                                                                           Sk ‘000        Sk ‘000

 Assets

 Cash and cash equivalents                                   3           1 461 106       1 769 381

 Loans and advances to banks                                 4           3 944 840       3 200 620

 Loans and advances to customers                             5            888 465        723 385

 Held-to-maturity securities                                 7            626 920        915 197

 Tangible fixed assets                                       8            180 006        200 098

 Corporate income tax refundable                                              -           16 527

 Deferred tax asset                                          9             8 548           2 981

 Other assets                                               10             15 876         80 263

 Accrued income                                                            3 539           2 165

                                                                         7 129 300       6 910 617



 Liabilities

 Loans from banks                                           11            424 123        218 466

 Corporate income tax payable                                              23 463            -

 Technical provisions for export credit insurance           12            207 993        183 733

 Provisions for liabilities                                 13            129 104         36 745

 Other liabilities                                          14             49 270         55 044

 Deferred revenues                                                         4 257          11 544

                                                                          838 210        505 532



 Shareholder’s equity

 Registered capital                                         15           3 000 000       3 000 000

 Funds                                                      16           3 123 620       3 203 666

 Profit and loss account                                    17            167 470        201 419




                                                                                                     INTERNATIONAL ACCOUNTING STANDARDS
                                                                         6 291 090       6 405 085



                                                                                                     FINANCIAL STATEMENTS ACCORDING TO
                                                                         7 129 300       6 910 617



 Off balance sheet items                                    18           1 024 389       1 611 494



The financial statements, which include the notes on pages 74 to 95, were signed on behalf of the
Bank Board on 17 May 2004 by:




               Ing. Ladislav Vaškovič, CSc.                      Ing. Peter Vlkolinský
                         Governor                                   Vice Governor


                                                                                                      71
                                     Profit and loss account Year ended 31 December 2003

                                                                                                            Notes     2003        2002
                                                                                                                     Sk ‘000     Sk ‘000

                                      Interest receivable and similar income arising from debt securities    19     345 785     396 304

                                      Interest payable                                                       20      (7 783)     (8 832)



                                      Net interest income                                                           338 002     387 472



                                      Fees and commissions receivable                                                20 544      27 310

                                      Insurance premiums, net                                                        28 055     173 621

                                      Dealing profits                                                                2 131       3 079

                                      Other operating (expense)/income                                              (13 634)      525



                                      Operating income                                                              375 098     592 007



                                      Administrative expenses                                                21     (123 726)   (155 489)

                                      Depreciation and impairment losses                                     8      (27 565)    (32 359)



                                      Operating expenditure                                                         (151 291)   (187 848)



                                      Operating profit before provisions                                            223 807     404 159



                                      Provisions for losses on loans and advances                            6      (31 798)     (8 620)

                                      Increase in technical provisions for export credit insurance           12     (24 260)    (129 446)

                                      Provisions for liabilities                                             13     (95 500)    (29 206)



                                      Profit before taxation                                                         72 249     236 887
INTERNATIONAL ACCOUNTING STANDARDS




                                      Taxation                                                               22     (43 288)    (29 469)
FINANCIAL STATEMENTS ACCORDING TO




                                      Profit after taxation                                                          28 961     207 418



                                     The notes on pages 74 to 95 form part of these financial statements.




72
Statement of recognized gains and losses
Year ended 31 December 2003

                                                              Notes      2003        2002
                                                                        Sk ‘000     Sk ‘000

 Payments from the guarantee fund                              16        (95)        (412)

 Payments from the foreign transactions
 equalisation fund                                             16      (133 298)   (12 479)

 Payments from the interest rate
 equalisation fund                                             16       (9 563)        -

 Capitalisation of miscellaneous non-capital funds             15          -        3 484

 Total losses not recognised in the profit and loss account            (142 956)    (9 407)

 Profit after taxation for the year                                     28 961     207 418

 Total recognised (losses)/gains                                       (113 995)   198 011


The notes on pages74 to 95 form part of these financial statements.


Cash flow statement Year ended 31 December 2003

                                                              Notes      2003        2002
                                                                        Sk ‘000     Sk ‘000

 Cash flows from operating activities

 Profit before changes in operating assets and liabilities     23      248 231     435 647

 Increase in loans and advances to banks                               (724 166)    (5 891)

 Increase in loans and advances to customers                           (216 381)   (65 684)

 Decrease/(increase) in other assets                                    62 462      (4 917)

 Decrease in other liabilities                                         (13 061)    (150 027)

 Corporate income tax paid                                              (8 865)    (60 560)

 Net cash (used in)/ from operating activities                         (651 780)   148 568




                                                                                               INTERNATIONAL ACCOUNTING STANDARDS
 Cash flows from investing activities



                                                                                               FINANCIAL STATEMENTS ACCORDING TO
 Proceeds on redemption of held-to-maturity securities                 288 277     302 309

 Purchase of tangible fixed assets                                      (7 473)    (13 406)

 Net cash from investing activities                                    280 804     288 903



 Cash flows from financing activities

 Loans received from banks                                             205 657         -

 Repayment of loans from banks                                             -       (132 166)

 Payments from funds                                                   (142 956)    (9 407)



 Net cash from/(used in) financing activities                           62 701     (141 573)

 Net (decrease)/ increase in cash and cash equivalents                 (308 275)   295 898

 Cash and cash equivalents at beginning of year                        1 769 381   1 473 483

 Cash and cash equivalents at end of year                      3       1 461 106   1 769 381


The notes on pages 74 to 95 form part of these financial statements.
                                                                                               73
                                     Notes to the financial statements
                                     Year ended 31 December 2003

                                     1. General information

                                     The Export-Import Bank of the Slovak Republic (“EXIMBANKA SR” or “EXIMBANKA”) was established
                                     on 1 July 1997 as a corporate entity under Act No. 80/1997. EXIMBANKA is wholly owned
                                     by the State.


                                     The primary role of EXIMBANKA is to support exports and imports in the context of the requirements
                                     of government foreign, trade, monetary and industrial policies. EXIMBANKA’s principal activities
                                     are the financing of export and import credits and insuring of export credits.


                                     EXIMBANKA is not a bank within the definition of Article 2 of the Act on Banks No 483/2001
                                     and is not subject to the supervision of the National Bank of Slovakia.



                                     2. Accounting policies

                                     The significant accounting policies adopted by EXIMBANKA are as follows:


                                     (a) Basis of preparation

                                     The financial statements have been prepared in accordance with International Financial Reporting
                                     Standards (‘IFRS’) issued by the International Accounting Standards Board.


                                     Financial assets held for trading and liabilities incurred on trading, derivative financial instruments
                                     and available-for-sale assets are all stated at fair value. Recognised assets and liabilities that
                                     are hedged are stated at fair value in respect of the risk that is hedged. Other financial
                                     and non-financial assets and liabilities are stated at amortised cost or historical cost.
INTERNATIONAL ACCOUNTING STANDARDS




                                     The financial statements are reported in Slovak crowns (Sk) and all amounts are presented
FINANCIAL STATEMENTS ACCORDING TO




                                     in thousands, except where otherwise stated.


                                     (b) Comparative figures

                                     The comparative figures have been regrouped or reclassified, where necessary, on a basis
                                     consistent with those of the current period.


                                     (c) Foreign currencies

                                     Transactions denominated in foreign currencies are translated into Slovak crowns at the exchange
                                     rates ruling on the date of the transaction. Monetary assets and liabilities are translated at the
                                     rates of exchange ruling on the balance sheet date. All resulting gains and losses are recorded
                                     in Dealing profits in the profit and loss account.



 74
(d) Provisions for losses on loans and advances

Loans and advances to customers and loans and advances to banks are stated net of provisions
for losses.

Provisions are made for probable losses on identified loans following detailed appraisal of the
loan portfolio. Provisions are recognised so as to reduce the carrying value of the loans to the
amount estimated to be recoverable.

Provisions for loan losses are reversed when it is subsequently determined that there will be an
increase in the estimated recoverable amount.

(e) Technical provisions for export credit insurance

Provisions are made to cover losses arising from insurance of commercial and political risks on
short, medium and long term export credits.

Provisions are made for the following:

Unearned premiums
The unearned premium reserve (‘UPR’) is created in respect of premiums written before year-end
relating to insurance coverage provided after the balance sheet date.

Incurred but not reported claims
The incurred-but-not-reported-claims reserve (‘IBNR’) is created to cover future payment obligations
under insurance claims which have occurred but have not yet been reported at the balance sheet
date and where, therefore, the amount of the benefit to be paid has not yet been formally
determined. The reserve is calculated taking into account past experience, current and anticipated
economic factors and experience in the industry.

Reported but not yet settled claims
The reported-but-not-settled-claims reserve (‘RBNS’) is created to cover future payment obligations
under insurance claims which have been reported at the balance sheet date.

Bonuses and rebates




                                                                                                       INTERNATIONAL ACCOUNTING STANDARDS
The bonuses and rebates reserve is created to cover premium refunds and other bonuses payable


                                                                                                       FINANCIAL STATEMENTS ACCORDING TO
to policyholders.

Movements in the UPR, the IBNR, the RBNS and the provisions for bonuses and rebates are
recorded in the profit and loss account, net of reinsurance amounts ceded.




                                                                                                       75
                                     (f) Debt and equity securities

                                     Debt securities and equity shares are classified as trading, held-to-maturity or as available-for-sale.
                                     All securities are accounted for at settlement date.

                                     Trading securities are marketable securities that are acquired and held with the intention of resale
                                     in the short term. Trading securities are stated at fair value.

                                     Gains and losses arising from changes in the fair value of trading securities are recorded in Dealing
                                     profits in the profit and loss account.

                                     Available-for-sale securities are those securities not held for trading or intended to be held
                                     to maturity. Available-for-sale securities are stated at fair value.

                                     Gains and losses arising from changes in the fair value of available-for-sale securities are recorded
                                     in Dealing profits in the profit and loss account.

                                     Held-to-maturity securities have fixed or determinable payments and fixed maturity which
                                     EXIMBANKA has the intent and ability to hold to maturity. Held-to-maturity securities are stated
                                     at amortised cost. Premiums or discounts on acquisition are amortised on a straight-line basis
                                     over the period to maturity. Provision is made for any impairment in value.



                                     (g) Repurchase and reverse repurchase agreements

                                     Securities sold under repurchase agreements are retained within either the held-to-maturity,
                                     available-for-sale or trading portfolios and accounted for accordingly. The related repurchase
                                     obligation is included in liabilities. Securities held under reverse repurchase agreements are
                                     included in Other assets.

                                     The difference between the sale and repurchase price is accrued evenly over the life of the
                                     transaction and credited or charged to the profit and loss account as interest receivable or
                                     interest payable.
INTERNATIONAL ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING TO




                                     (h) Tangible fixed assets

                                     Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is not
                                     provided on land. On other fixed assets, it is provided on a straight line basis over the expected
                                     remaining useful lives as follows:


                                                                                                                Years

                                                           Buildings                                         30 years

                                                           Furniture, fittings and equipment            4 to 12 years

                                                           Motor vehicles                                     4 years

                                                           Software                                           4 years



                                     Depreciation commences when assets are first put into use.

 76
(i) Impairment

The carrying amounts of assets are reviewed at each balance sheet date to determine
whether there is any indication of impairment. If any such indication exists, an
estimate is made of the asset’s recoverable amount. For intangible assets that are
not yet available for use, the recoverable amount is estimated at each balance
sheet date. An impairment loss is recognised in the profit and loss account when
the carrying amount of an asset exceeds its recoverable amount.


(j) Provisions for liabilities

A provision is recognized when EXIMBANKA has a legal or constructive obligation
as a result of a past event, and it is probable that an outflow of economic benefits will
be required to settle the obligation. If the effect is material, provisions are determined
by discounting the expected cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks specific
to the liability.


(k) Funds

Funds which represent present obligations arising from past events, which can be
reliably measured and which are expected to result in outflows of economic benefits
are liabilities and are so treated in the balance sheet. Payments from these funds are
recognized as expenses in the profit and loss account. At 31 December 2003, funds
which met these criteria were the bonus fund, the social fund and the representation
fund.


All other funds which do not qualify as liabilities are treated as appropriations of retained
profits. Contributions to, or payments from these funds, are disclosed in the statement
of recognized gains and losses.


(l) Interest, fees and commissions




                                                                                                INTERNATIONAL ACCOUNTING STANDARDS
                                                                                                FINANCIAL STATEMENTS ACCORDING TO
Interest, fees and commissions are recognized in the period in which they are
earned or incurred.


(m) Income tax

Income tax on the profit for the year comprises current tax and deferred tax.


Current tax is the expected tax payable on the taxable income for the year using tax
rates enacted at the balance sheet date, together with any adjustment to tax payable
in respect of previous years.


Deferred tax is provided using the balance sheet liability method, on temporary
differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. The amount of
deferred tax provided is based on the expected manner of realisation or settlement

                                                                                                 77
                                     of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the
                                     balance sheet date.


                                     A deferred tax asset is recognized only to the extent that it is probable that future taxable profits
                                     will be available against which the unused tax losses and credits can be utilised. Deferred tax
                                     assets are reduced to the extent that it is no longer probable that the related tax benefit will be
                                     realised.



                                     (n) Operating lease costs

                                     Operating lease costs are charged to the profit and loss account as incurred.



                                     (o) Cash and cash equivalents

                                     Cash and cash equivalents comprise cash balances, treasury bills and loans and advances to
                                     banks with remaining maturity of up to three months.


                                     3. Cash and cash equivalents

                                                                                                                     2003           2002
                                                                                                                    Sk ‘000        Sk ‘000

                                      Loans and advances to banks with remaining
                                      maturity up to 3 months (note 4)                                            1 461 106       1 769 381




                                     4. Loans and advances to banks

                                                                                                                     2003          2002
                                                                                                                    Sk ‘000       Sk ‘000
INTERNATIONAL ACCOUNTING STANDARDS




                                      Repayable on demand                                                           61 193         11 219
FINANCIAL STATEMENTS ACCORDING TO




                                      Other loans and advances by remaining maturity:

                                      - 3 months or less                                                          1 399 913      1 758 162

                                      - 1 year or less but over 3 months                                          3 944 840      3 220 674

                                                                                                                  5 405 946      4 990 055



                                      Provisions for losses                                                            -          (20 054)



                                                                                                                  5 405 946      4 970 001

                                      Less amounts with remaining maturity up to 3 months (note 3)                (1 461 106)   (1 769 381)



                                                                                                                  3 944 840      3 200 620




78
Loans and advances to banks include amounts totalling Sk 4 734 800 thousand (2002: Sk 3 680 854
thousand) which were provided for the purpose of financing the export and import activities of designated
customers of those banks. The credit risk on these loans is borne by the counterparty banks.


The movements on the provision for losses on loans and advances to banks during the year were
as follows:

                                                                                2003          2002
                                                                               Sk ‘000       Sk ‘000

 At 1 January                                                                  20 054         17 114

 (Reversal)/charge for the year (note 6)                                      (20 054)        2 940

 At 31 December                                                                   -           20 054




5. Loans and advances to customers

                                                                                2003           2002
                                                                               Sk ‘000        Sk ‘000

 Repayable on demand                                                           59 589         59 559

 Other loans and advances to customers by remaining maturity:

 - 3 months or less                                                           590 946         439 336

 - 1 year or less but over 3 months                                           349 637         281 488

 - 5 years or less but over 1 year                                                -            3 408

                                                                             1 000 172        783 791

 Provisions for losses (note 6)                                               (111 707)       (60 406)

                                                                              888 465         723 385


Loans and advances were made to customers in the following sectors:


                                                                                2003           2002




                                                                                                            INTERNATIONAL ACCOUNTING STANDARDS
                                                                               Sk ‘000        Sk ‘000



                                                                                                            FINANCIAL STATEMENTS ACCORDING TO
 Manufacturing companies                                                      993 041         769 787

 Other industries                                                              7 131          14 004

                                                                             1 000 172        783 791



All loans and advances were made to Slovak-resident companies.




                                                                                                            79
                                     6. Provisions for losses on loans and advances

                                     The movements on the provisions for losses on loans and advances were as follows:


                                                                                          At 1 Jan 2003          Charge/ (reversal)      At 31 Dec 2003
                                                                                                                   for the year
                                                                                              Sk ‘000                Sk ‘000                    Sk ‘000

                                      Loans and advances to banks (note 4)                    20 054                 (20 054)                      -

                                      Loans and advances to customers (note 5)                60 406                  51 301                  111 707

                                      Other assets (note 10)                                  52 861                   551                      53 412

                                                                                             133 321                  31 798                  165 119



                                     7. Held-to-maturity securities

                                                                                                                               2003                2002
                                                                                                                              Sk ‘000             Sk ‘000

                                      Slovak treasury bills and other similar bills                                           199 369            495 490

                                      Slovak government bonds                                                                 427 551            419 707

                                                                                                                              626 920            915 197

                                     At 31 December 2003, the market value of held-to-maturity securities was Sk 628 million
                                     (2002: Sk 922 million).


                                     8. Tangible fixed assets

                                                                            Land     Furniture fittings    Motor     Software    Assets      Total
                                                                        and buildings & equipment         vehicles            not yet in use
                                                                          Sk ‘000        Sk ‘000          Sk ‘000     Sk ‘000   Sk ‘000 Sk ‘000

                                      Cost

                                      At 1 January 2003                    198 230        109 447         15 031     148 376          10 794      481 878
INTERNATIONAL ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING TO




                                      Additions                                -              -              -            -           7 473            7 473

                                      Transfers                                -           7 068             -          405           (7 473)            -



                                      At 31 December 2003                  198 230        116 515         15 031     148 781          10 794      489 351



                                      Depreciation and impairment losses

                                      At 1 January 2003                    29 968          95 501         13 414     142 897             -        281 780

                                      Charge for the year                   6 399          6 431            676        3 265             -         16 771

                                      Impairment loss                          -              -              -            -           10 794       10 794



                                      At 31 December 2003                  36 367         101 932         14 090     146 162          10 794      309 345



                                      Net book value

                                      At 31 December 2003                  161 863         14 583           941        2 619             -        180 006
80                                    At 31 December 2002                  168 262         13 946          1 617       5 479          10 794      200 098
9. Deferred tax asset

The deferred tax asset relates to temporary differences arising from the following:


                                                Assets             Liabilities                    Net
                                           2003       2002     2003          2002       2003         2002
                                          Sk ‘000   Sk ‘000   Sk ‘000      Sk ‘000     Sk ‘000      Sk ‘000

 Provisions for losses
 on loans to customers                       -      5 618        -       (21 139)           -       (15 521)

 Provisions for losses on other assets       -      12 691       -           -              -       12 691

 Technical provisions for export
 credit insurance                         6 897     2 306        -           -            6 897         2 306

 Other liabilities                        2 156     3 505      (505)         -            1 651         3 505

                                          9 053     24 120     (505)     (21 139)         8 548         2 981


At 31 December 2003, the deferred tax asset has been calculated using a corporate income tax
rate of 19% (2002: 25%).



10. Other assets

                                                                                  2003              2002
                                                                                 Sk ‘000           Sk ‘000

 Insurance premiums receivable                                                   16 803            67 550

 Other receivables                                                               50 081            61 379

 Other assets                                                                     2 404             4 195

                                                                                 69 288            133 124



 Provisions for losses (note 6)                                                  (53 412)          (52 861)

                                                                                 15 876            80 263




                                                                                                                INTERNATIONAL ACCOUNTING STANDARDS
                                                                                                                FINANCIAL STATEMENTS ACCORDING TO
11. Loans from banks

                                                                                  2003              2002
                                                                                 Sk ‘000           Sk ‘000

 Loans from banks by remaining maturity

 - 1 year or less but over 3 months                                              188 913                 -

 - 3 months or less                                                              235 210           218 466

                                                                                 424 123           218 466



Loans from banks comprises drawdawns totalling 10 304 thousand under a long term loan
facility provided by ING Bank. The total facility available under the contract amendment dated
29 May 2001 is        16 900 thousand. The loan, which was obtained to finance export loans
to EXIMBANKA’s clients, bears interest at an annual rate of EURIBOR plus 0.3% p. a. and is                       81
unsecured.
                                     12. Technical provisions for export credit insurance

                                     The movements on the technical provisions for export credit insurance during the year were as follows:



                                                                                           At 1 Jan 2003       Charge/(credit)        At 31 Dec 2003
                                                                                                                  for year
                                                                                             Sk ‘000              Sk ‘000                Sk ‘000

                                      Unearned premium reserve                               152 166              (23 343)               128 823

                                      Less: reinsurance ceded                                  (26)                 (264)                 (290)

                                                                                             152 140              (23 607)               128 533


                                      Incurred but not reported claim reserve                 56 000               28 479                84 479

                                      Less: reinsurance ceded                                (33 700)             (15 506)               (49 206)

                                                                                              22 300               12 973                35 273



                                      Reported but not settled claim reserve                  12 801              36 154                 48 955

                                      Less: reinsurance ceded                                 (8 772)               (996)                (9 768)

                                                                                              4 029               35 158                 39 187



                                      Bonuses and rebates reserve                             5 264                 (264)                 5 000

                                                                                             183 733               24 260                207 993



                                     13. Provisions for liabilities

                                                                                At 1 Jan        Charge for     Foreign exchange         At 31 Dec
                                                                                 2003            the year    translation difference       2003
                                                                                Sk ‘000          Sk ‘000            Sk ‘000              Sk ‘000

                                      Provisions for guarantee liabilities      22 726           49 750             (3 141)              69 335

                                      Provisions for other liabilities          14 019           45 750                -                 59 769
INTERNATIONAL ACCOUNTING STANDARDS




                                                                                36 745           95 500             (3 141)              129 104
FINANCIAL STATEMENTS ACCORDING TO




                                     14. Other liabilities

                                                                                                                            2003            2002
                                                                                                                           Sk ‘000         Sk ‘000

                                      Social expenses, bonuses and other amounts payable to employees                      24 315          33 762

                                      Other liabilities                                                                    24 955          21 282

                                                                                                                           49 270          55 044




82
15. Registered capital

At 31 December 2003, EXIMBANKA’s total registered capital, which is wholly-owned by the State,
amounted to Sk 3,000 million (2002: Sk 3,000 million).


The movements in registered capital during the year were as follows:


                                                                             2003           2002
                                                                            Sk ‘000        Sk ‘000

 At 1 January                                                              3 000 000     2 670 000

 Capitalisation of retained profits (note 17)                                  -          324 170

 Capitalisation of miscellaneous non-capital funds                             -           3 484

 Capitalisation of transfer from capital fund                                  -           2 346

                                                                           3 000 000     3 000 000



The capitalisation of retained profits, non-capital funds and capital funds in 2002 was approved
by the Slovak government under decree No. 975, issued on 4 September 2002.



16. Funds

                                                     1 Jan 2003   Transfers Payments   31 Dec 2003
                                                       Sk ‘000     Sk ‘000 Sk ‘000       Sk ‘000

 (a) Reserve fund (note 17)                           534 000      6 910       -        540 910
 (b) Capital fund                                     13 194         -         -         13 194

 (c) Guarantee fund                                   587 831        -       (95)       587 736

 (d) Commercial
     risks fund                                       241 107        -         -        241 107

 (e) Export fund                                      500 000        -         -        500 000




                                                                                                      INTERNATIONAL ACCOUNTING STANDARDS
 (f) Foreign transactions



                                                                                                      FINANCIAL STATEMENTS ACCORDING TO
     equalisation fund                                133 298        -     (133 298)        -

 (g) Export loans
     insurance
     fund                                            1 194 236       -         -       1 194 236

 (h) Interest rate equalisation fund
     (note 17)                                           -        56 000    (9 563)      46 437

                                                     3 203 666    62 910 (142 956)     3 123 620



The funds have been established in accordance with the requirements of Article 30 of Act
No. 80/1997 which outlines their sources and purposes. The Act makes no provision for any distri-
bution from funds to the shareholder.


(a) The reserve fund is to be used to cover any losses or any future adverse financial conditions.
    The reserve fund is created by an allocation of 5% of the annual net profit until the aggregate
    amount reaches a level equal to 20% of the registered capital.
                                                                                                      83
                                     (b) The capital fund is to be used to cover losses arising from banking and insurance activities.


                                        The fund is created from external contributions and sources other than from annual net profits.


                                     (c) The guarantee fund is to be used to guarantee exports or imports in accordance with approved
                                         conditions.


                                        The fund is created from allocations from annual net profits and specifically designated
                                        contributions from the State.


                                     (d) The commercial risks fund is to be used to cover reinsurable commercial and other risks
                                         arising on insuring short-term export credits. The fund is to be utilised when provisions created
                                         for such risks are insufficient to cover claims.


                                        The fund is created from allocations from annual net profits and specifically designated
                                        contributions from the State.


                                     (e) The export fund is to be used to finance export loans provided by EXIMBANKA to exporters,
                                         exporters’ banks, foreign customers or foreign customers’ banks.


                                        The fund is created from specifically designated contributions from the State.


                                     (f) The foreign transactions equalisation fund is to be used to equalise differences between
                                         the interest rate on loans received directly by EXIMBANKA on the capital market and the interest
                                         rate on loans provided. The fund is also to be used to equalise losses arising on the movement
                                         in exchange rates when a loan is provided in a different currency from that in which it is
                                         financed.


                                        The fund is created from specifically designated contributions from the State.


                                        Payments of Sk 133 298 thousand were made from this fund to exporters during the year
                                        ended 31 December 2003 (2002: Sk 12 479 thousand).
INTERNATIONAL ACCOUNTING STANDARDS




                                     (g) The export loans insurance fund is to be used to cover non-reinsurable political and other risks
FINANCIAL STATEMENTS ACCORDING TO




                                         arising on insuring short term export credits and political and commercial risks arising
                                         on insuring medium and long term export credits. The fund is to be utilised when provisions
                                         created for such risks are insufficient to cover claims.


                                        The fund is created from specifically designated contributions from the State.


                                     (h) The interest rate equalisation fund is to be used to equalise differences between the interest
                                         rate on loans received directly by EXIMBANKA on the capital market and the interest rate
                                        on loans provided.


                                        The fund is created from allocations from annual net profits.


                                        Payments of Sk 9 563 thousand were made from this fund to exporters during the year ended
                                        31 December 2003 (2002: nil).

84
17. Profit and loss account

                                                                        2003          2002
                                                                       Sk ‘000       Sk ‘000

 At 1 January                                                          201 419       418 818

 Transfer to share capital (note 15)                                      -         (324 170)

 Transfer to reserve fund (note 16)                                    (6 910)       (96 841)

 Transfer to guarantee fund                                               -          (3 806)

 Transfer to interest rate
 equalisation fund (note 16)                                           (56 000)         -

 Profit for the year                                                   28 961        207 418

 At 31 December                                                        167 470       201 419



The Bank Board will propose the following allocation of the statutory profit for the year ended
31 December 2003:


                                                                                     Sk ‘000

 Transfer to interest rate equalisation fund                                         13 400

 Transfer to social, bonus and representation funds                                  13 200

 Transfer to export loans
 insurance fund                                                                      20 000

 Profit retained                                                                     49 141

                                                                                     95 741



18. Off balance sheet items


                                                                        2003          2002
                                                                       Sk ‘000       Sk ‘000




                                                                                                  INTERNATIONAL ACCOUNTING STANDARDS
                                                                                                  FINANCIAL STATEMENTS ACCORDING TO
 Contingent liabilities:

 Guarantees issued                                                    1 024 389     1 611 494




19. Interest receivable and similar income arising from debt securities


                                                                        2003          2002
                                                                       Sk ‘000       Sk ‘000

 Interest receivable and similar income arising from:

 Loans and advances to banks                                           244 170       291 798

 Loans and advances to customers                                       46 691        40 636

 Debt securities                                                       54 924        63 870

                                                                       345 785       396 304

                                                                                                  85
                                     20. Interest payable


                                                                                                            2003      2002
                                                                                                           Sk ‘000   Sk ‘000

                                      Loans from banks                                                      7 783     8 832




                                     21. Administrative expenses


                                                                                                            2003      2002
                                                                                                           Sk ‘000   Sk ‘000

                                      Employee costs:

                                      Wages and salaries                                                   40 222    43 058

                                      Social insurance                                                     12 366    14 259

                                      Bonuses and other benefits                                           11 034    18 294

                                                                                                           63 622    75 611



                                      Other administrative expenses                                        60 104    79 878



                                                                                                           123 726   155 489




                                     The average number of employees during the year was 96 (2002: 102).



                                     22. Taxation

                                                                                                            2003      2002
                                                                                                           Sk ‘000   Sk ‘000
INTERNATIONAL ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING TO




                                      Corporate income tax

                                      Current year                                                         48 855    32 450

                                      Deferred tax (note 9)                                                (5 567)   (2 981)

                                                                                                           43 288    29 469




86
The accounting profit before taxation is reconciled to the tax base as follows:


                                                                             2003       2002
                                                                            Sk ‘000    Sk ‘000

 Profit before taxation                                                     72 249     236 887

 Non-deductible expenses                                                    128 879    73 675

 Non-taxable income:

 Income from securities                                                     (39 638)   (63 870)

 Release of non tax-deductible provisions                                   (33 359)   (26 087)

 Other                                                                      (5 060)    (1 678)

 Other:

 Provisions deducted from the tax base
 to be reversed in subsequent period                                        82 411     (84 554)

 Miscellaneous                                                              (10 064)   (4 572)



 Tax base                                                                   195 418    129 801



 Tax at 25%                                                                 48 855     32 450




23. Profit before changes in operating assets and liabilities

                                                                             2003       2002
                                                                            Sk ‘000    Sk ‘000

 Profit before taxation                                                     72 249     236 887

 Adjustments for non-cash items:

 Depreciation and impairment losses                                         27 565     32 359

 Provisions                                                                 151 558    167 272

 Loss on disposal of tangible fixed assets                                     -         899




                                                                                                  INTERNATIONAL ACCOUNTING STANDARDS
 Translation difference on provisions for liabilities                       (3 141)    (1 770)


                                                                                                  FINANCIAL STATEMENTS ACCORDING TO
                                                                            248 231    435 647



 Net cash used in operating activities includes the following cash flows:

 Interest received                                                          320 200    406 654

 Interest paid                                                              (13 147)   (6 702)



                                                                            307 053    399 952




24. Lease commitments


                                                                             2003       2002
                                                                            Sk ‘000    Sk ‘000

 Non-cancellable commitments under operating leases                            -        1 610
                                                                                                   87
                                     25. Assets and liabilities denominated in foreign currencies

                                     EXIMBANKA had the following foreign currency-denominated assets and liabilities at 31 December 2003:


                                                                                    Euro   Swiss franc Other Slovak crown       Total
                                                                                   Sk ‘000  Sk ‘000    Sk ‘000  Sk ‘000        Sk ‘000

                                      Assets

                                      Cash and cash equivalents                      295         -        22     1 460 789   1 461 106

                                      Loans and advances to banks                     -          -         -     3 944 840   3 944 840

                                      Loans and advances to customers              389 976       -         -      498 489     888 465

                                      Held-to-maturity securities                     -          -         -      626 920     626 920

                                      Corporate income tax refundable                 -          -         -         -            -

                                      Deferred tax                                    -          -         -       8 548       8 548

                                      Other assets                                   124      7 876       28       7 848       15 876

                                      Accrued income                                  -          -         -       3 539       3 539

                                                                                  390 395     7 876       50     6 550 973   6 949 294



                                      Liabilities

                                      Loans from banks                            424 123        -         -         -        424 123

                                      Corporate income tax payable                    -          -         -      23 463       23 463
                                      Other liabilities                             1 176     8 462        -      39 632       49 270

                                      Deferred revenue                               10          -         3       4 244       4 257

                                                                                  425 309     8 462        3      67 339      501 113



                                     EXIMBANKA had the following foreign currency-denominated assets and liabilities at 31 December 2002:



                                                                                    Euro   Swiss franc Other Slovak crown       Total
                                                                                   Sk ‘000  Sk ‘000    Sk ‘000  Sk ‘000        Sk ‘000

                                      Assets
INTERNATIONAL ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING TO




                                      Cash and cash equivalents                      239         -        32     1 769 110   1 769 381

                                      Loans and advances to banks                     -          -         -     3 200 620   3 200 620

                                      Loans and advances to customers              221 215       -         -      502 170     723 385

                                      Held-to-maturity securities                     -          -         -      915 197     915 197

                                      Corporate income tax refundable                 -          -         -      16 527       16 527
                                      Deferred tax                                    -          -         -       2 981       2 981

                                      Other assets                                    5       4 144       64      76 050       80 263

                                      Accrued income                                  -          -         -       2 165       2 165

                                                                                  221 459     4 144       96     6 484 820   6 710 519



                                      Liabilities

                                      Loans from banks                            218 466        -         -         -        218 466

                                      Other liabilities                              43       8 455       37      46 509       55 044

                                      Deferred revenues                              62          -         -      11 482       11 544
88
                                                                                   218 571    8 455       37      57 991      285 054
26. Related party transactions

EXIMBANKA did not enter into any transactions during the year with directors or senior management,
their close relatives or companies in which they have a substantial interest.


As set out in IAS 24 Related Party Disclosures, no disclosure is required of transactions with other
state-controlled enterprises.



27. Maturity analysis

The remaining period to maturity of monetary assets and liabilities at 31 December 2003 was as
follows:



                                           Within      1-5      More than   Not specified     Total
                                           1 year      years     5 years
                                          Sk ‘000     Sk ‘000    Sk ‘000      Sk ‘000        Sk ‘000

 Monetary assets
 Cash and cash equivalents               1 461 106       -          -             -         1 461 106

 Loans and advances to banks             3 944 840       -          -             -         3 944 840

 Loans and advances to customers          883 992        -          -          4 473        888 465

 Held-to-maturity securities              626 920        -          -             -         626 920

 Corporate income tax refundable              -          -          -             -             -

 Deferred tax                                 -          -          -          8 548         8 548

 Other assets                              14 994        -          -           882          15 876

 Accrued income                            3 509        30          -             -          3 539

                                         6 935 361      30          -         13 903        6 949 294



 Monetary liabilities
 Loans from banks                         424 123        -          -             -         424 123




                                                                                                        INTERNATIONAL ACCOUNTING STANDARDS
 Corporate income tax payable              23 463        -          -             -          23 463



                                                                                                        FINANCIAL STATEMENTS ACCORDING TO
 Other liabilities                         49 270        -          -             -          49 270

 Deferred revenues                         4 257         -          -             -           4 257

                                          501 113        -          -             -         501 113


Loans and advances to customers and other assets are stated net of provisions for losses.




                                                                                                        89
                                     The remaining period to maturity of monetary assets and liabilities at 31 December 2002 was as
                                     follows:



                                                                                  Within     1-5       More than   Not specified     Total
                                                                                  1 year     years      5 years
                                                                                 Sk ‘000    Sk ‘000     Sk ‘000      Sk ‘000        Sk ‘000

                                      Monetary assets

                                      Cash and cash equivalents                1 769 381        -          -             -         1 769 381
                                      Loans and advances to banks              3 200 620        -          -             -         3 200 620

                                      Loans and advances to customers           712 757      3 305         -          7 323        723 385

                                      Held-to-maturity securities               915 197         -          -             -         915 197

                                      Corporate income tax refundable            16 527         -          -             -          16 527

                                      Deferred tax                                  -           -          -          2 981          2 981

                                      Other assets                               80 263         -          -             -          80 263

                                      Accrued income                              2 165                                              2 165

                                                                               6 696 910     3 305         -         10 304        6 710 519



                                      Monetary liabilities

                                      Loans from banks                          218 466         -          -             -         218 466

                                      Other liabilities                          55 044         -          -             -          55 044

                                      Deferred revenues                          11 544         -          -             -          11 544

                                                                                285 054         -          -             -         285 054



                                     Loans and advances to customers and to banks and other assets are stated net of provisions for losses.


                                     28. Financial instruments

                                     EXIMBANKA uses a wide range of financial instruments. A financial instrument is a contract that
                                     gives rise to both a financial asset of one enterprise and a financial liability or equity instrument
INTERNATIONAL ACCOUNTING STANDARDS




                                     of another enterprise. Examples include loans, deposits, debt securities and equity shares.
FINANCIAL STATEMENTS ACCORDING TO




                                     Derivatives are also financial instruments which are so called because their value is derived from
                                     the value of an underlying instrument, index or reference rate. The principal categories of derivatives
                                     are forwards, including futures, options and swaps.


                                     Risks associated with financial instruments

                                     The use of financial instruments generally involves the assumption or transfer of risk. The main
                                     types of risks are credit risk, market risk (including interest rate risk and foreign exchange risk)
                                     and liquidity risk.


                                     The management of EXIMBANKA assign the highest priority to risk management and have
                                     established clear and comprehensive risk policies, procedures and control systems, which are
                                     reviewed regularly by the Bank Council.


90
Credit risk


Credit risk is the risk that a borrower or counterparty will fail to honour their contractual
obligations.


Credit risk is strictly controlled through a structure involving the strategy and risk management
department, the credit committee, the committee for insurance credit risk and the Bank Board.


EXIMBANKA’s procedures for managing credit risk include the establishment of concentration
limits by borrower, counterparty, industrial sector and product. Credit appraisal procedures
are performed before individual borrower and counterparty limits are approved and collateral
is obtained to reduce credit risk. EXIMBANKA also continually monitors performance of the portfolio
to ensure that prompt action can be taken to minimise potential losses.

Interest rate risk


Interest rate risk is the potential impact on the value of financial assets and liabilities arising from
changes in market interest rates.

Interest rate risk is regularly monitored by EXIMBANKA’s strategy and risk management department.
Most of the financial instruments used are short term in nature and have variable interest rates.


The average effective interest rates at 31 December 2003 and the periods in which interest-bearing
assets and liabilities reprice was as follows:



                                  Effective       Total     3 months    1 year or less but 1 – 5      over
                                interest rate                or less     over 3 months      years    5 years
                                      %          Sk ‘000     Sk ‘000        Sk ‘000        Sk ‘000   Sk ‘000

 Interest-bearing assets

 Cash and cash
 equivalents                       4,55         1 461 106   1 461 106           -            -          -

 Loans and advances to banks       3,62         3 944 840       -         3 944 840          -          -




                                                                                                               INTERNATIONAL ACCOUNTING STANDARDS
                                                                                                               FINANCIAL STATEMENTS ACCORDING TO
 Loans and advances to customers 5,96           888 465     595 421        293 044           -          -

 Debt securities                   5,56         626 920         -          626 920           -          -

                                                6 921 331   2 056 527     4 864 804          -          -



 Interest-bearing liabilities

 Loans from banks                  2,56         424 123     235 210         188 913          -          -

 Interest rate repricing gap                    6 497 208   1 821 317      4 675 891         -          -

 Cumulative interest rate
 repricing gap                                  6 497 208   8 318 525     12 994 416 12 994 416 12 994 416




                                                                                                                91
                                     The average effective interest rates at 31 December 2002 and the periods in which interest-bearing
                                     assets and liabilities reprice was as follows:


                                                                       Effective       Total     3 months    1 year or less but 1 – 5      over
                                                                     interest rate                or less     over 3 months      years    5 years
                                                                           %          Sk ‘000     Sk ‘000        Sk ‘000        Sk ‘000   Sk ‘000

                                      Interest-bearing assets

                                      Cash and cash
                                      equivalents                       5,53         1 769 381   1 769 381           -            -          -

                                      Loans and advances to banks       5,00         3 200 620       -         3 200 620          -          -

                                      Loans and advances to customers 7,58           723 385     444 136        275 944         3 305        -

                                      Debt securities                   7,73         915 197         -           915 197          -          -

                                                                                     6 608 583   2 213 517      4 391 761       3 305        -


                                      Interest-bearing liabilities

                                      Loans from banks                  3,43         218 466     218 466             -            -          -

                                      Interest rate repricing gap                    6 390 117   1 995 051      4 391 761       3 305        -

                                      Cumulative interest rate
                                      repricing gap                                  6 390 117   8 385 168     12 776 929 12 780 234 12 780 234
INTERNATIONAL ACCOUNTING STANDARDS
FINANCIAL STATEMENTS ACCORDING TO




92
Foreign exchange risk


Foreign exchange risk arises from the impact on the value of financial assets and liabilities from
changes in foreign exchange rates.


The policy of EXIMBANKA is to maintain minimal net exposures to foreign exchange risk and sets
limits for individual foreign currencies.


Assets and liabilities denominated in foreign currencies are set out in note 25.

Liquidity risk


Liquidity risk is the risk that there will be insufficient funds to meet normal operating
requirements.


Liquidity risk is managed as part of EXIMBANKA’s asset and liability management process and
procedures include the regular monitoring of the timing of future cash flows.


The remaining maturity of assets and liabilities at the balance sheet date is set out in note 27.




                                                                                                     INTERNATIONAL ACCOUNTING STANDARDS
                                                                                                     FINANCIAL STATEMENTS ACCORDING TO




                                                                                                     93
                                     29. Fair values

                                     Fair value is the amount at which an asset could be exchanged, or a liability settled, between
                                     knowledgeable, willing parties in an arm’s length transaction. The estimated fair values of
                                     EXIMBANKA’s financial assets and liabilities at year end were as follows:


                                                                                     Carrying         Fair         Carrying        Fair
                                                                                      value          value          value         value
                                                                                      2003           2003           2002          2002
                                                                                     Sk ‘000        Sk ‘000        Sk ‘000       Sk ‘000

                                      Financial assets

                                      Cash and cash equivalents                     1 461 106      1 461 106     1 769 381      1 769 381

                                      Loans and advances to banks                   3 944 840      3 944 840     3 200 620      3 181 322

                                      Loans and advances to customers                888 465        888 465       723 385        720 615

                                      Held-to-maturity securities                    626 920        628 267       915 197        921 669

                                      Other assets                                    15 876        15 876         80 263        80 263



                                      Financial liabilities

                                      Loans from banks                               424 123        424 123       218 466        218 466

                                      Other liabilities                               49 270        49 270         55 044        55 044



                                     The following methods and assumptions were used in estimating the fair values of the financial
                                     assets and liabilities:

                                     Cash and cash equivalents
                                     The fair values of cash and cash equivalents approximate to the carrying values.

                                     Loans and advances to banks
                                     Loans and advances to banks are stated net of provisions for non-recoverable amounts. As all loans
                                     reprice within relatively short time periods, this is a reasonable approximation of fair value.
INTERNATIONAL ACCOUNTING STANDARDS




                                     Loans and advances to customers
FINANCIAL STATEMENTS ACCORDING TO




                                     Loans and advances to customers are stated net of provisions for non-recoverable amounts. As all
                                     loans reprice within relatively short time periods, this is a reasonable approximation of fair value.

                                     Held-to-maturity securities
                                     The fair value of held-to-maturity securities is calculated by discounting the future cash flows using
                                     current market rates.

                                     Other assets
                                     Other assets are stated net of provisions for non-recoverable amounts. As the other assets are
                                     short-term in nature, their fair value approximates to the carrying value.

                                     Loans from banks
                                     The fair value of loans from banks is calculated by discounting the future cash flows using current
                                     interbank rates.

                                     Other liabilities
94
                                     As other liabilities are short-term in nature, their fair value approximates to the carrying value.
30. Reconciliation to Slovak statutory financial statements

The profit after taxation, shareholder’s equity and total assets prepared under Slovak accounting
regulations and reported in the statutory financial statements can be reconciled to these financial
statements prepared under IFRS as follows:


                                                                               Profit after   Share-holder’s Total
                                                                                taxation         equity      assets
                                                                                 2003             2003       2003
                                                                                Sk ‘000         Sk ‘000     Sk ‘000

 Reported under Slovak accounting regulations                                   95 741         6 295 041 7 187 419



 Items recorded in prior years under IFRS:

 Release of provision

 on fully paid loan                                                             (84 554)            -          -

 Other                                                                           2 193              -          -

 Cash collateral for loans removed from assets                                      -               -      (118 571)

 Additional deferred tax asset                                                   5 567           8 548      8 548

 Reclassification of liability funds                                                -            (1 442)       -

 Release of provisions on repaid loans                                          61 439           61 439     60 114

 Release of provisions for losses on loans to banks                             22 471              -          -

 Additional provisions for liabilities                                          (51 086)        (51 086)       -

 Impairment loss on tangible fixed assets                                       (8 210)          (8 210)    (8 210)
 Accrual for bonus and other liability fund expenses                            (13 200)        (13 200)       -

 Underprovision for bonus and other liability fund expenses in prior year       (1 400)             -          -



 Reported under IFRS                                                            28 961         6 291 090 7 129 300




                                                                                                                       INTERNATIONAL ACCOUNTING STANDARDS
                                                                                                                       FINANCIAL STATEMENTS ACCORDING TO
                                                                               Profit after   Share-holder’s Total
                                                                                taxation         equity      assets
                                                                                 2002             2002       2002
                                                                                Sk ‘000         Sk ‘000     Sk ‘000

 Reported under Slovak accounting regulations                                   138 177        6 354 139 7 909 919



 Collateral for loans and guarantees issued                                         -               -      (883 067)
 Term deposit held as collateral for loans provided to customers                    -               -      (180 000)

 Release of provision in respect of loan fully repaid after the balance sheet date 84 554       84 554      84 554

 Reclassification of provisions                                                     -               -      (23 770)

 Deferred tax asset                                                              2 981           2 981      2 981

 Reclassification of bonuses and other liability funds                          (22 100)        (36 589)       -

 Overprovision for bonus and other liability fund expenses in prior year         3 806              -          -



 Reported under IFRS                                                            207 418        6 405 085 6 910 617     95
Grösslingová 1, 813 50 Bratislava



telephone                                  + 421 - 2 - 59 398 111
e-mail: informacie@eximbanka.sk
http://www.eximbanka.sk

Banking Division
Secretariat to the Vice-Governor           + 421 - 2 - 59 398 205
Corporate client department                + 421 - 2 - 59 398 610
SMEs department                            + 421 - 2 - 59 398 709
Bill of exchange transactions department   + 421 - 2 - 59 398 322

Insurance Division
Secretariat to the Vice-Governor           + 421 - 2 - 59 398 603
Commercial risk insurance department       + 421 - 2 - 59 398 302
Non-commercial risk insurance department   + 421 - 2 - 59 398 513

Finance-Economic Division
Secretariat to the Vice-Governor           + 421 - 2 - 59 398 201

								
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