Legal grounds: Paragraph 5.1.8 of the Ordinance of the Council of Ministers of 25 March 2005 on current and periodical information provided by issuers of securities. The report: The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna hereby informs that on 17 August 2005 the Bank entered into an agreement with an affiliate of Kredyt Bank (Ukraina) S.A. with its seat in Lvov (a subsidiary of the Bank) for the granting of a subordinated loan of 7,000,000 (seven million) US dollars with an 8-year term. The subordinated loan was granted without any security and will be repaid with a one-off payment at the end of the financing period. The subordinated loan was granted at arm’s length. The subordinated loan agreement was executed in accordance with requirements of the National Bank of Ukraine as set out in the resolution of the Management Board of the National Bank of Ukraine no. 368 of 28 August 2001, which allows to include the amount of the subordinated loan in the Kredyt Bank (Ukraina) S.A. shareholders’ equity upon approval of the National Bank of Ukraine. The subordinated loan was granted with a view to finance the development of the Kredyt Bank (Ukraina) S.A. operations. Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna holds shares having the total value of the purchase price of PLN 109.53 million which represents 66.65% of the share capital of Kredyt Bank (Ukraina) S.A. and 66.65% of votes at the General Meeting of Kredyt Bank (Ukraina) S.A.
