Stepan Chernovetskyi

About 15th anniversary history, present and future of PRAVEX-BANK

Date: 26 december 2007

15 anniversary — it is serious term for check of stability and successfulness of this financial institution. PRAVEX-BANK withstood the test of time with dignity, having reached the highest results in the financial sphere of activity. Stainless reputation for 15 years and staying in the first ten Ukrainian banks it is not only successful history but perspective future. Stepan Chernovetskiy, Chairman of Supervisory Board told about it and about a lot of other things.

— Stepan Leonidovich, PRAVEX-BANK is among ten leaders during 15 years, how did you manage to do it?

— PRAVEX-BANK was established in 1992 and has been developing during these years under conditions of high competition. Due to efficient management and professionalism of employees, and also due to stainless reputation, bank has been keeping high indexes among ten leaders of Ukrainian banks till today.

— Can you tell in what spheres PRAVEX-BANK took the first place?

— PRAVEX-BANK — was the first among commercial banks in the middle 90s that started to create its retail network that permitted to approach banking services to each client, and also established feedback with clients, having launched call-centre, and introduced experience of communication with them with the help of book of complaints and offers.

In 1998 it was the first to get NBU license on banking metals transactions performance and in fact opened that market. Since the beginning of activity till today, PRAVEX-BANK sold to Ukrainian consumers more than 33 tones of banking metals and is leader at this field of banking services.

I think that PRAVEX-BANK will be remembered forever as bank that gave mortgage credit firstly in Ukraine. In 1999 many people considered it risky, but as you see it is possible! And at present it is the most called-for service at crediting market.

We showed reliability, competence, honesty and stability — it is indexes that positively characterize financial and banking business all over the world.

Looking back at 15-years history, it is possible to say with confidence that PRAVEX-BANK was and is one of the leaders at financial market that demonstrate clients' base and financial indexes. Year by year PRAVEX-BANK becomes more accessible, reliable and closer for its clients, both in high standard of service and in its geography.

— You remembered about world financial market. Say, please, what activity indexes are paid attention to by foreign investors first of all while taking decision about cooperation with foreign banks?

— While taking decision about cooperation with Ukrainian banks, foreign investors pay special attention to ratings assigned to Ukrainian banks by international rating agencies, as rating shows level of bank's ability to settle in time its obligations. PRAVEX-BANK since 2003 cooperates with rating agency Moody's — rating В2 (forecast — stable). In September 2007 bank got rating form second rating agency Fitch at the level В— (forecast — stable).

Besides, such indexes as transparency, openness, and bank's financial results confirmed by authoritative audit are important for potential investors or creditors.

Annually PRAVEX-BANK undergoes international audit to check compliance to international standards of financial accountability, approach to world markets and maximal understanding of banking business-model at international market. IAS Accountability permits to estimate better real state of business in bank and gives opportunity to take more reasonable administrative decision. Since 2003 till today bank undergoes audit in international audit company Deloitte&Touche USC, which is among 4 leading international audit companies.

— Now US dollar rate is actively discussed in mass media. What do you think, what can be expected from dollar in future?

— I can tell that in fact there is more speculative panic than real case is in American banking system in claims about US dollar decrease against euro. Situation at international financial market, in total, and at American — in particularcan be called expressing by military term — staff. Yes, it is possible to observe insignificant fluctuation of quotations of cross-rates of the main world and minimal increase of monetary resources cost. But this situation is normal, as it is known that world economics, as our life, develops cyclically. At some moment indexes grow showing sometimes practically impressive financial indexes, and then they take short time-out to summon up new energy for new stage of growth. Exactly now world economy took such time-out to do soon break ahead.

Besides, one more significant factor which ensures US dollar stability as world currency is that fact that majority countries of the world including G8 countries save lion's share of their exchange reserve in US dollar and they will not permit sharp decrease of this currency share in its basket.

— Stepan Leonidovich, can US dollar rate influence significantly financial processes in Ukraine?

— Ukraine as the country with developing economics slightly depends on process which takes place in world economics. It is stipulated by still not high interrelation level of Ukrainian economics fields with world.

Consequently, US dollar rate relating to hryvna remains at that level which is set by National Bank of Ukraine, and this rate is confirmed by real gold currency reserve of National regulator, which besides is monthly increased, and has already passed border in USD 30 b. It is very high index which confirms absolute reliability of national currency— hryvna.

Besides, seasonal factor also plays its role. Really, November and December for last several years are characterized by growth of euro rate against dollar, when beginning of a year — traditionally is time of growth of dollar assets attractiveness. Thus, before New Year holidays annually dollar rate against hryvna is decreased, because majority of citizens that save their reserves in dollars, spend considerable amount of such funds by the end of a year. As a result, there is created big dollar mass in economics that slightly decreases dollar rate that we can observe now. And I think that after New Year and Christmas holidays dollar rate will be stabilized.

— Tell, please, about nearest business-plans of PRAVEX-BANK?
— Among bank's plans is further funding base diversification. For the first half of 2008 Eurobonds issue for the total amount about USD 150 m is planned. Also we are planning to continue successful experience of financing involvement into domestic market. Total amount of planned issue of local bonds for 2008 constitutes UAH 500 m. Issue of mortgage bonds that are ensured by mortgage assets for the amount minimum UAH 50 m. will be new for bank in 2008. Issue of these bonds will be the first stage of bank's preparation to assets securitization.

— Due to New Year holidays approach, what would you like to wish our readers?

-— On the eve of New Year I want to wish real energy and spirit strength that would be enough to achieve set aims and desires realization. The most important thing is not to stop at what has been accomplished and fearlessly go ahead overcoming obstacles. Rejoice of your success and be yourself. May this holiday bring you happiness, harmony and warmth in hearts of each person.

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