MEETING OF THE BOARD OF THE BANK OF LITHUANIA 1. On the results of the inspection of AB DnB NORD bankas

1. On the results of the inspection of AB DnB NORD bankas

At its meeting, the Board of the Bank of Lithuania was presented information on the inspection of AB DnB NORD bankas. The inspection focused on the bank management, internal control and the management of individual risks (credit, liquidity, market and operational) as well as on the compliance with the legal acts regulating banking activities and the bank’s internal regulations.

The AB DnB NORD bankas was instructed to draw up a plan for removing the drawbacks established during the inspection and present it to the Bank of Lithuania. The bank was instructed to remove the shortcomings indicated in the inspection report by 1 December 2007.

2. On the inclusion of a subordinated loan in the capital of AB Sampo bankas and permission to repay two subordinated loans before maturity

The Board of the Bank of Lithuania granted permission to AB Sampo bankas to include the subordinated 10-year loan of EUR 19,694,100 (LTL 67,999,788) received from Danske Bank A/S in Tier 2 capital of the bank.

It also issued permission for AB Sampo bankas to repay before maturity two subordinated loans of EUR 14,481,000 (LTL 49,999,997) and EUR 5,213,100 (LTL 17,999,792), respectively, received from Sampo Bank Plc in 2004 and 2005.

3. On the compliance of the participants of the Republic of Lithuania Government securities auction with the requirements raised to them and performance of their obligations

The Board acknowledged that the participants of the Republic of Lithuania Government securities auction - AB bankas Hansabankas, AB DnB NORD bankas, AB Sampo bankas, financial brokerage company AB Finasta, AB bankas Snoras, AB SEB Vilniaus bankas and AB PAREX bankas - met the relevant requirements and criteria and performed their obligations.

The Bank of Lithuania performs an annual review of compliance by auction participants with the relevant requirements and criteria, and performance of their obligations.

4. On graphic designs of the commemorative coin from the series dedicated to mark the millennium anniversary of the mention of the name of Lithuania

The Board approved the results of the graphic (artistic) design competition for the 100 litas commemorative gold coin from the series dedicated to mark the millennium anniversary of the mention of the name of Lithuania.The first place was awarded to the designs of Liudas Parulskis.

The Board approved the graphic (artistic) designs of the obverse and the reverse of the 100 litas commemorative gold coin by Liudas Parulskis. The Board also approved the inscription on the edge of the coin: LIETUVOS VARDO T

The other two gold coins dedicated to mark the millennium anniversary of the mention of the name of Lithuania will be issued in 2008 and 2009.

5. On the Financial Stability Report (2006)

The Board of the Bank of Lithuania was presented the Financial Stability Report for 2006 and approved it. The Report was prepared by the Economics Department of the Bank of Lithuania.

The new Financial Stability Report will be available on the website of the Bank of Lithuania.

When preparing and publishing the Financial Stability Report, the purpose of the Bank of Lithuania is to review the development of the financial system of Lithuania and evaluate its capacity to operate in a less favourable macroeconomic environment.

The first Financial Stability Report was prepared and published a year ago.