Monitoring of the Federal Legislation dated 22.11.2005

Decision of the Government of the Russian Federation No. 678 of November 11, 2005 on the Endorsement of the Typical Contracts for the Purpose of Implementation of the Federal Law on the Accumulated Mortgage System of Housing Support for Servicemen

Endorses three forms of typical contracts defining the procedure of trust control of the savings of housing support for servicemen, rendering services by the special depositary to the federal body of executive power in charge of the accumulated mortgage system of housing support for servicemen, as well as the management company providing trust control of the savings of the housing support for servicemen.

Defines the subject of the contracts, rights and duties of the special depositaries and the authorised federal bodies, procedure and amount of payment for the services of the special depositary, as well as the responsibility of the parties.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/95 of October 31, 2005 on the Supplement to the Actual Earnings

The employer assumes the duty to cover the temporary disability allowance at the expense of the organisation for the first two days of employee disability. The mentioned amounts are registered by the employer for taxation purposes as other expenses pertaining to production and sale.

The issue of the amount of supplement to the actual earnings for the bank employees with the length of service less than three years must be solved by the bank itself proceeding from the terms of labour contracts concluded with employees.

Expenses of the employee earnings paid out in supplement to the actual employee earnings during employee temporary disability shall be registered as labour remuneration expenses.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/77 of October 11, 2005

Pursuant to Article 292 of the Tax Code of the Russian Federation, banks may create a reserve for possible losses in loans pertaining to loan and similar debts (including the debts of interbank credits and deposits). Amounts of deductions to the mentioned reserves are recognised as expenses and are taken into account in the determination of the taxable base except for the restrictions envisaged in the legislation (if the reserve has been formed for a standard debt or for promissory notes other than protested ones).

The building of the reserve for a third-party protested bill purchased by the bank under a contract of purchase and sale is considered legal.