REPUBLIC OF SERBIA Ministry of Finance I NVESTOR P RESENTATION O - - PowerPoint PPT Presentation

Ministry of Finance

INVESTOR PRESENTATION OCTOBER 2016

REPUBLIC OF SERBIA

• 1. Republic of Serbia – Overview
• 4. Fiscal Policy and Debt Management Strategy
• 3. Banking Sector
• 2. Macroeconomic Background

Serbia at a Glance

Key Facts

Resilient economy on the path to full integration with Europe



Form of Government: Parliamentary Republic



Territory: 88,361 sq. km



Capital: Belgrade



Population: 7.2 million(1,2)



GDP per capita: EUR 4,626(1,2)



Nominal GDP: EUR 32.9bn(1,2)



Credit ratings: BB-/B+/B1



Currency: Serbian Dinar (RSD)



Current exchange rate: EUR/RSD = 123.2139 (3) USD/RSD = 109.6404 (3)

Vilnius

EU Non-EU

SERBIA

Nis Kragujevac Novi Sad

Belgrade

1 National Statistics Office as of 2015 , 2 Excluding Kosovo and Metohija, 3 NBS as of 03 October 2016

Recent Milestones and Progress to EU accession

EU membership application Responses to the European Commission’s Questionnaire

2008 2006 2009 2011 2009 2011 2012

EU candidate status awarded EC agrees to start Serbia’s EU accession negotiations in January 2014

2013

3

Jan 2014

Serbia started EU accession negotiations

April 2014

Formation of new Government

Nov 2014

Serbia reached IMF agreement

Dec 2015

Serbia opened chapters 32 and 35 in the process

• f EU accession

July 2016

Serbia opened chapters 23 and 24 in the process

• f EU accession

Aug 2016

Formation of new Government

Oct-16 Oct-15 Change Oct-16 Oct-15 Change Oct-16 Serbia BB- BB- No Change BB- B+ B1 Bulgaria BB+ BB+ no change BBB- BBB- no change Baa2 Croatia BB BB no change BB BB no change Ba2 Hungary BBB- BB+ BBB- BB+ Ba1 Romania BBB- BBB- no change BBB- BBB- no change Baa3 Latvia A- A- no change A- A- no change A3 Lithuania A- A- no change A- A- no change A3

Serbia’s Rating In Comparative Perspective

Credit Rating History

 Standard and Poor's – In July 2016, the S&P affirmed Serbia’s credit rating at BB-, while outlook remained stable. Main drivers of such decision are the successful implementation of the fiscal consolidation programme and structural reforms which will accelerate economic growth and contribute decreasing budget deficit of the Republic of Serbia.  Fitch Ratings – In June 2016, the Fitch ratings has upgraded the Republic of Serbia credit rating from 'B+' to 'BB-'. The Outlooks have been revised to stable.The main factors which contributed to credit rating upgrade are:

• Successful implementation of fiscal consolidation measures;
• Expected stronger economic growth in following years
• Reduced general government deficit which will support downward path of public debt/GDP ratio

 Moody's – In March 2016, Moody’s Investor Service has changed Serbia’s credit rating outlook to positive from stable and affirmed Serbia’s credit rating at B1. Moody’s decision to raise Serbia’s credit rating outlook reflects primarily the successful implementation of the fiscal consolidation programme and structural reforms, as well as enhancements to the quality of Serbia's institutions and improved economic growth prospects.

4

• 1. Republic of Serbia – Overview
• 4. Fiscal Policy and Debt Management Strategy
• 3. Banking Sector
• 2. Macroeconomic Background

Exports Have Been A Major Driver Of Economic Growth

Source: National Statistics Office, Ministry of Finance Source: Eurostat

Real GDP Growth (Y-o-Y) Real GDP Growth 2011 – 2016 (Y-o-Y)

• In 2015 the Republic of Serbia marked 0.7% growth, while estimated

growth for 2016 is revised up to 2.5%

• In Q1 2016, GDP grew by 3.5% primarily on the basis of better

construction and industrial performance, while real economic growth in Q2 2016 was 2.0%

• The GDP growth in 2015 was dominantly based on investments in fixed

assets 8.3% (Y-o-Y)

• In the first eight months of 2016 exports of goods increased by 9.3% in

value terms over the corresponding 2015 period, while imports of goods increased by 5.8% (in EUR terms)

• Exports of motor vehicles kept the leading 15.1% share followed by

processed food products with 10.7% share, electrical equipment 8.2% share and basic metals 7.4% share in total exports (in EUR terms)

• In the first eight months of 2016 the export-import ratio was on the level of

77.2%, while in 2015 was 73.4%

Source: National Statistics Office, National Bank of Serbia

Exports of Goods – Nominal Growth (Y-o-Y)

6 3.8% 26.0% 1.4% 7.8% 9.3% 0% 5% 10% 15% 20% 25% 30% 2012 2013 2014 2015 Aug-16

• 3
• 2
• 1

1 2 3 4 5 6 7 2012 2013 2014 2015 QII 2016* Serbia Romania Bulgaria Croatia Hungary *Preliminary Data 33.4 31.7 34.3 33.3 32.9 1.4%

• 1.0%

2.6%

• 1.8%

0.7%

• 3%
• 2%
• 1%

0% 1% 2% 3% 4% 30 31 31 32 32 33 33 34 34 35 2011 2012 2013 2014 2015 GDP, EUR bn GDP growth rate

External Position

Exchange Rate USD/RSD (Sept 2015 – Sept 2016) Exchange rate EUR/RSD (Sept 2015 – Sept 2016)

Source: National Bank of Serbia Source: National Bank of Serbia Source: National Bank of Serbia

• At the end of August 2016 Serbia had a level of FX reserves at EUR

9.6bn (about 6 months of imports coverage) and net reserves at EUR 8.0bn which provide a good cushion for the Serbian external position

• At the end of June 2016 external debt stood at EUR 25.8bn, including

private sector external debt of EUR 10.8bn

• During 2015 EUR/RSD exchange rate showed limited volatility. In

2015 the average exchange rate EUR/RSD was 120.7

Foreign Exchange Reserves (mln EUR)

7 10.9 11.2 9.9 10.4 9.6 8.5 9.0 9.5 10.0 10.5 11.0 11.5 2012 2013 2014 2015 Aug-16 110.0 112.0 114.0 116.0 118.0 120.0 122.0 124.0 126.0 128.0 84.0 88.0 92.0 96.0 100.0 104.0 108.0 112.0 116.0 120.0

Trade Balance

Balance of Payments (% of GDP)

Source: National Statistics Office, National Bank of Serbia Source: National Statistics Office *Projected GDP

Trade Deficit (% of GDP)

Source: National Statistics Office, National Bank of Serbia

External Trade as (% of GDP)

• Current account deficit in 2015 reached historical minimum level of

4.8% of GDP, while estimated CAD in 2016 is established at level of 4.2% of GDP

• In the first half of 2016, CAD was about 20% less compared to the

same period last year and amounted 4.0% of GDP

• The significant growth rates in 2015 were recorded in export of

tobacco products (+84%), furniture (+37%), machinery and equipment(+20%), fabricated metal products (+18%) and textiles (+11%), meanwhile in the first eight months of 2016 significant growth rates were recorded in tobacco products (+63%), electrical equipment (+38%), chemical products (+22%) and furniture (+20%) comparing to the same period last year

• Recovery of euro zone will be very important for further acceleration
• f Serbian exports

8

• 6.1%
• 6.0%
• 4.8%
• 4.0%

2.2% 1.4%

• 1.8%

3.8% 3.7% 5.5% 5.3%

• 8.0%
• 6.0%
• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 2013 2014 2015 Jul-16 Net FDI Financial Account ex.FDI Current Account 27.6% 32.1% 33.5% 36.6% 38.8% 46.4% 45.1% 46.5% 49.8% 50.2% 0% 10% 20% 30% 40% 50% 60% 2012 2013 2014 2015 Aug-16 Export Import 5.9 4.5 4.3 4.4 2.6 18.8% 13.0% 13.0% 13.3% 11.4% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 17.0% 19.0% 21.0% 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2012 2013 2014 2015 Aug-16 Trade deficit (EUR bn) Trade deficit (% of GDP)

Serbia’s Exports and Imports in Jan-Aug 2016

Import of Goods Import of Goods Export of Goods

Source: National Statistics Office Source: National Statistics Office

Export of Goods

Source: National Statistics Office Source: National Statistics Office 9 66% 7% 17% 10% EU CIS MEDA Other 63% 10% 7% 20% EU CIS MEDA Other 16% 13% 8% 5% 5% 5% 48% Italy Germany Bosnia and Herzegovina Romania Russian Federation Montenegro Others 10% 13% 8% 8% 5% 5% 51% Italy Germany Russian Federation China Hungary Poland Others

…And By Types Of Products

Source: National Statistics Office

Export Jan-Aug 2016 (FOB) Import Jan– Aug 2016 (CIF)

Source: National Statistics Office

External Trade as % GDP

• Serbia’s exports are reasonably diversified, covering the full range of

products from intermediate inputs, to consumer and capital goods

• This confirms that Serbia is already being integrated into the

European trade system and is able to export goods to multinational companies operating in the global supply chain

• Intermediate and capital goods have been the fastest growing export

product categories in period 2011-2015, one of the positive results of the direct foreign investment that Serbia has attracted in recent years due to the Government of Serbia subsidy program

Source: National Statistics Office * Projected GDP 10 27.6% 32.1% 33.5% 36.6% 38.8% 46.4% 45.1% 46.5% 49.8% 50.2% 0% 10% 20% 30% 40% 50% 60% 2012 2013 2014 2015 Aug-16 Export Import 3% 35% 25% 5% 24% 8% Energy Intermediate goods Capital goods Durable consumer goods Non durable consumer goods Unclassified by MIG destination 9% 32% 23% 2% 14% 20% Energy Intermediate goods Capital goods Durable consumer goods Non durable consumer goods Unclassified by MIG destination

Foreign Direct Investments

Net FDI Diversification by Geography (2015) Net FDI Diversification by Sector* (2015) Net Foreign Direct Investment (EUR mln)

• NFDI’s in 2015 reached the level of above EUR 1.8bn and fully

covered CAD. The biggest FDIs were in manufacturing sector (rubber production, motor vehicles, food production), financial sector, construction, retail trade sector, telecommunication and IT sector

• In the first eight months of 2016 NFDI’s were EUR 1.2bn, while

estimated level of NFDI’s in whole 2016 is revised up to EUR 1.8bn

• FDI projection for the coming years also envisages full coverage of

CAD

• Air Serbia improved performance of the Belgrade Airport Nikola

Tesla which became very attractive to potential investors.

• Belgrade Water Front project started in Q4 2015
• The new legal framework – Law on Investments was adopted in

October 2015 and improvement on the World Bank – Doing Business List (59th position, previous year 68st)

Source: National Bank of Serbia Source: National Statistics Office; National Bank of Serbia Source: National Statistics Office, National Bank of Serbia *2012 data affected by Telekom Srbija’s buyback of its Treasury shares from OTE (EUR 380m) 11 20.1% 19.5% 9.4% 8.0% 6.7% 4.9% 4.8% 4.4% 4.0% 4.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 34.1% 9.9% 12.5% 5.1% 22.9% 3.2% 3.0% 9.3% Manufacturing Wholesale and retail trade Construction Information and communication Financial intermediation Transport and communication Agriculture Other 1,133 3,320 753 1,298 1,236 1,804 1,054 500 1000 1500 2000 2500 3000 3500 2010 2011 2012 2013 2014 2015 Jul-16

Inflation in the Target Band in the first half of 2017

Source: National Bank of Serbia Source: National Bank of Serbia Source: National Bank of Serbia

• Inflation has been moving below the target tolerance band since March

2014 mainly due to movements in food and oil prices

• According to the NBS estimate, y-o-y inflation is expected to rise

moderately since July 2016 and to enter the target tolerance band in the first half of 2017

• Medium-term inflation expectations of financial sector are anchored

within the target tolerance band

• During 2015, the NBS gradually reduced its key policy rate (KPR) by

350 bps and at the end of December 2015 KPR was at the level of 4.5%, meanwhile in 2016 NBS reduced KPR for additional 50 bps to the level of 4.00% in July 2016

Y-o-Y Inflation eop Key Policy Rate and Money Supply Contribution of CPI Components to Y-o-Y Inflation (%)

12 7.0% 12.2% 2.2% 1.7% 1.5% 1.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2011 2012 2013 2014 2015 Aug-16

• 4.0
• 1.0

2.0 5.0 8.0 11.0 14.0 Unprocessed Food Processed food Industrial goods excluding food and energy Energy Services

• 15.0%
• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Key Policy Rate (left axis) M2 (YoY) (right axis)

• 1. Republic of Serbia - Overview
• 4. Fiscal Policy and Debt Management Strategy
• 3. Banking Sector
• 2. Macroeconomic Background

Banking Sector Overview

Source: National Bank of Serbia *latest available comparable data Source: National Bank of Serbia

Asset Structure Liabilities and Capital Structure Consolidated Balance Sheet of the Banking Sector

14 Source: National Bank of Serbia Source: National Bank of Serbia *latest available comparable data 54% 17% 14% 7% 2% 6%

Loans and receivables from clients Financial assets available for sale Currency and deposits with the central bank Loans and receivables from banks and other financial

• rganisations

Fixed assets Other assets

11% 65% 2% 13% 7% 2% Deposits to banks, OFO and the central bank Deposits to other customers Subordinated liabilities Share capital and other capital Reserves and unrealised losses Profit Other

Assets 2012 2013 2014 2015 Aug-16

• I. Foreign Assets

35.7% 36.2% 35.2% 34.1% 32.3% Of which NBS 31.4% 32.8% 28.9% 29.3% 26.8%

• II. Domestic credit

56.6% 56.0% 56.9% 58.1% 59.3%

• f which Government

7.3% 8.6% 10.9% 12.4% 13.8%

• f which Companies

28.1% 25.7% 23.2% 22.9% 22.3%

• f which Households

16.4% 17.1% 17.3% 17.5% 18.4%

• III. Other Assets

7.8% 7.8% 7.8% 7.8% 8.3% Total Assets (EUR bn) 35 34.4 34.6 35.7 36.1 Liabilities 2012 2013 2014 2015 Aug-16

• I. Foreign Liabilities

18.8% 14.7% 10.5% 9.1% 7.8%

• II. Government depostis

4.9% 7.3% 8.0% 7.3% 7.2%

• III. Currency in

circulation 2.8% 3.1% 3.1% 3.2% 3.1%

• IV. RSD deposits

9.3% 10.8% 11.6% 13.0% 12.8%

• V. FX deposits

29.2% 29.7% 29.9% 29.9% 30.3%

• VI. Other Liabilities

35.0% 34.4% 37.0% 37.5% 38.7% Total Liabilities (EUR bn) 35 34.4 34.6 35.7 36.1

A Strong Capital Cushion Offsets Relatively High NPLs

Source: National Bank of Serbia Source: National Bank of Serbia Source: National Bank of Serbia

Credit Growth Y-o-Y Capital Adequacy Ratio and NPL’s Banking Sector Ownership by Assets (2015)

15 18.6 21.4 21.5 21.6 19.6 19.9 20.9 20.0 20.9 21.6 17 17.5 18 18.5 19 19.5 20 20.5 21 21.5 22 2012 2013 2014 2015 Jul-16 NPL's CAR

• At the end of July 2016 CAR stands at high level of 21.6%, mainly

due to recapitalization, higher reserves from capital and lower capital requirements for credit risk

• NPLs are fully covered by balance sheet loan loss reserves. IFRS

provision (65.2% in July 2016) cover more than half of NPLs. Among

• thers, NBS regulatory measures allow the sale of NPLs to non

financial entities and better tax treatment on restructured debt

• The share of NPLs has a downward trend - at end of July 2016 it

stood at 19.6%, 2.8 pp lower compared to 12 months ago, and for the first time after 3 years below 20%

• Liquidity ratio of the banking system is higher than the regulatory limit

(2.2 in July 2016) and liquid assets represent 35.0% of total assets in at the end of July 2016

• The loan to deposit ratio for the banking sector remains on a

conservative low level 0.96 in July 2016

14.8% 26.2% 13.1% 10.1% 11.7% 24.1% Austria Italy Greece France Other foreign banks Domesticaly owned banks

• 20.0%
• 10.0%

0.0% 10.0% 20.0% 30.0%

Loans to households Loans to enterprises Total loans

• 1. Republic of Serbia - Overview
• 4. Fiscal Policy and Debt Management Strategy
• 3. Banking Sector
• 2. Macroeconomic Background

Fiscal Policy Measures – New IMF Agreement

In September 2014 Government announced new fiscal consolidation measures and structural changes:  Public sector wage bill (including public enterprises) reduced by about 10%  Average reduction of pensions by up to 10% with progressive rates starting from pensions above EUR 210 per month (25.000 RSD)  Decrease in subsidies: to agriculture, Srbijagas, Railways, RTS  Reduction of discretionary expenditures (goods and services)  Reform of tax administration and public revenue system  Reform of public enterprises  Public administration reform and rightsizing  Improvement of capital expenditure planning and execution  New set of measures introduced in January 2016  Three successful IMF program reviews during 2015

Source: Ministry of Finance Source: Ministry of Finance * projected Source: Ministry of Finance

Consolidated Fiscal Balance (% of GDP) Central Government Budget (RSD bn) Tax Revenues (as % of GDP)

17 0% 5% 10% 15% 20% 25% 2010 2011 2012 2013 2014 2015 Other tax revenues Duties Profit tax Personal income tax Excises VAT 745 789 812 881 948 997 881 1,002 1,013 1,128 1,063 1,119

• 136
• 213
• 201
• 247
• 115
• 122
• 400
• 200

200 400 600 800 1,000 1,200 2011 2012 2013 2014 2015 2016* Revenues Expenses Balance

• 1.5% -1.9%
• 2.6%
• 4.4%
• 4.6% -4.8%
• 6.8%
• 5.5%
• 6.6%
• 3.8%

0.3%

• 8.0%
• 7.0%
• 6.0%
• 5.0%
• 4.0%
• 3.0%
• 2.0%
• 1.0%

0.0% 1.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Aug-16

 The IMF completed the first review of Serbia’s economic performance under the SBA on 26 June 2015 – The economy has stabilized, inflationary pressures remained subdued, the external position has strenghtened and credit growth remained slow  The IMF completed the second review of Serbia’s economic performance under the SBA on 23 October 2015 – The economic growth has remained positive despite the significant fiscal tightening, the current account deficit has narrowed to a sustainable level, confidence has improved and gradual easing of monetary policy by the NBS has been appropriate in view of still low inflation  The IMF completed the third review of Serbia’s economic performance under the SBA on 18 December 2015 – The economy has continued to recover on the back of efforts to strengthen public finances, address structural weaknesses and improve the business climate  The IMF completed the fourth and fifth reviews of Serbia’s economic performance under the SBA on 31 August 2016 – Serbia’s economic recovery has exceeded expectations, supported by efforts to strengthen public finances, advance structural reforms and boost investment confidence, while authorities indicated their intention to continue treating the arrangement as precautionary

Serbia Reiterates the Importance of Cooperation with the IMF

18

Completed first review of Serbia’s Stand-By Arrangement Completed second review of Serbia’s Stand-By Arrangement

2008 2006 2009 2011 June 2015 Oct 2015 Dec 2015

Completed third review

• f Serbia’s Stand-By

Arrangement Completed fourth and fifth reviews of Serbia’s Stand-By Arrangement

Aug 2016

Active Debt Management Has Produced Stable Funding Base

Total foreign debt 62% Total domestic debt 38%

Other 15% IMF, 2% IDA, 2% Paris Club, 5% IBRD, 8% Other 2% T-bills and T-bonds 33% Frozen FX bonds 3% Guaranteed external debt 7% Eurobond, 19% EIB, 4%

Source: Ministry of Finance Source: Ministry of Finance Source: Ministry of Finance (RSD bn) Source: Ministry of Finance *In accordance with the Fiscal Strategy for 2016 with projections of 2017 and 2018

Public Debt Public Debt Service (RSD bn) Description of the Debt Structure (As of 31 August 2016) Development of the Currency Structure

19 125 139.9 151.6 157 501 567.6 702.7 668.6 100 200 300 400 500 600 700 800 900 2015 2016* 2017* 2018* Principal Interest 1547.5 2014.8 2309.0 2753.2 3018.6 2990.2 45.4% 56.2% 59.6% 70.4% 76.0% 72.1% 25.0% 35.0% 45.0% 55.0% 65.0% 75.0% 85.0% 0.0 500.0 1000.0 1500.0 2000.0 2500.0 3000.0 3500.0 2011 2012 2013 2014 2015 Aug-16 Public debt (in RSD bn) Public debt (% of GDP) 18.3% 20.3% 21.4% 22.2% 21.5% 51.0% 45.9% 41.7% 39.8% 40.6% 23.1% 27.7% 31.5% 32.9% 33.0% 5.7% 4.6% 4.2% 3.9% 3.7% 1.9% 1.5% 1.2% 1.2% 1.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 2013 2014 2015 Aug-16 Other SDR USD EUR RSD

Debt Mix and Currency Structure

Source: Ministry of Finance, as of 31 August 2016 Source: Ministry of Finance, as of 31 August 2016 Source: Ministry of Finance, as of 31 August 2016 0,6% 0,6% Source: Ministry of Finance, as of 31 August 2016

Internal vs External Debt Interest Rate Mix Currency Breakdown Public Debt Residual Maturity Structure

20 61.8% 38.2% Total foreign debt Total domestic debt 21.5% 40.6% 33.0% 3.7% RSD EUR USD CHF SDR Others 78.8% 21.2% Fixed interest rate Variable interest rate 0.9% 2.0% 7.9% 20.8% 17.7% 13.9% 10.0% 13.4% 13.5% Up to 6 months Between 6 months and 1 year Between 1 and 2 years Between 2 and 5 years Between 5 and 7 years Between 7 and 10 years Between 10 and 15 years Between 15 and 20 years Over 20 years

Government Financing Needs

Source: Ministry of Finance Source: Ministry of Finance

• The improvement in fiscal position of the Government decreased the

level of gross financing needs in 2015

• As of November 2015, Government bonds are listed on the Belgrade

Stock Exchange

• Total financing needs in 2016 are EUR 5.4bn while in 2015 were EUR

4.6bn due to significantly lower budget deficit than initially planned

• Financing plan for 2016:

√ EUR 3.7bn government securities domestic market, of which: * EUR 2.7bn denominated in dinars * EUR 1.0bn denominated in euros √ EUR 1.0bn Eurobond √ EUR 0.7bn IBRD and Abu Dhabi Emirate concessional loan

• In February 2016 3Y RSD 110bn benchmark bond issued
• Improved secondary market trading of government dinar securities due to

benchmark size issues in 2015 of 3Y and 7Y bonds and new 3Y and 7Y benchmark size issues in 2016

• In the first nine months of 2016 Government recorded budget surplus of

0.9% of GDP, while primary surplas amounted 4.3% of GDP

Maturity Distribution of Local Currency Government Securities (As of 31 August 2016) Maturity Distribution of EUR Denominated Government Securities (As of 31 August 2016)

21 0% 11% 22% 38% 8% 19% 1% 6M 53W 2Y 3Y 5Y 7Y 10Y 11% 27% 27% 17% 12% 5% 53W 2Y 3Y 5Y 10Y 15Y

Government Securities – Domestic Market

Source: Ministry of Finance Source: Ministry of Finance 22

RSD securities-domestic market (Jan-Sept 2016) EUR securities-domestic market (Jan-Sept 2016) ATM of Government securities RSD weighted average accepted rate on primary auctions

Source: Ministry of Finance Source: Ministry of Finance

0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 53W 2Y 3Y 5Y 10Y EUR Millions Redemptions New Issuance

9.52% 9.38% 10.10% 10.71% 11.02% 12.15% 12.49% 7.35% 7.54% 8.49% 9.21% 10.16% 10.93% 11.99% 12.99% 4.96% 4.42% 5.94% 7.06% 8.62% 6.50% 11.99% 2.78% 3.13% 3.93% 4.78% 5.53% 5.98% 2.5% 3.5% 4.5% 5.5% 6.5% 7.5% 8.5% 9.5% 10.5% 11.5% 12.5% 13.5% 3M 6M 53W 2Y 3Y 5Y 7Y 10Y 2013 2014 2015 2016

0.0 20.0 40.0 60.0 80.0 100.0 3M 6M 53W 2Y 3Y 5Y 7Y RSD Billion Redemptions New Issuance

2.2 3.0 1 2 3 4 5 6 In years ATM RSD Securities ATM EUR Securities