FINANCIAL AND STOCK MARKET

The Banking Sector

The Krasnodar Territory has a developed banking infrastructure, including 126 banking institutions with over 1,000 branches.

The Krasnodar Territory is the leader in the Southern Federal District in terms of the number of lending institutions and certain key banking sector performance indicators.

The 2007 lending portfolio of the banking sector in the Kuban area reached 6.5 billion euros, which is 50% more than last year’s indicator. In terms of the credit portfolio, the region is firmly established among the top ten Russian regions.

Lending to enterprises in the real sector of the economy is a dynamic process and, in 2007, the banks extended 16 billion euros in loans.

House mortgages are burgeoning in the area. During the period under review, more than 8,000 mortgages were issued, which is double the 2006 figure.

The number of bank card users has increased by 30% to reach 1.5 million.

Insurance market

The insurance services market is developing rapidly.

The number of companies working in the regional insurance market is a measure of its attractiveness and development level. There are 133 insurance companies in the region, with a network of 550 offices and agencies.

In terms of active insurance companies, the Krasnodar Territory is among the top five regions in the country.

In 2007, insurers collected 500 million euros in premiums, up 30% on 2006.

One positive trend last year was a substantial growth in voluntary types of insurance to reach 72% of the total (excluding mandatory medical insurance).

The stock market

Development of stock market instruments is an important factor in attracting investments into the economy of the Kuban area and, in these terms, the Krasnodar Territory was the absolute leader in the Southern Federal District in 2007.

Securities issues topped 1.6 billion euros, which is 2.8 times more than in 2006.

The corporate bond sector is growing fast, accounting for over 34% of total issues.

This is aided by a developed stock market infrastructure, which includes 74 professional securities market participants.

In 2007, the first ever Eurobonds to the tune of $300 million were issued by OAO Novorossiysk Marine Commercial Port, and an SPO of $980 million took place.

For more detail, see http://finmarket.kubangov.ru/