Meeting of the Board of the Bank of Lithuania

1. The Board reviewed the results of the inspection of Sampo bankas carried out from 30 August to 24 September 2004.

Sampo bankas was instructed to remove the shortcomings indicated in the inspection report by 15 December 2004, including the implementation of the procedures for the assessment and classification of doubtful assets and making specific provisions and the rules on the management of the loan risk database approved by the Bank of Lithuania.

2. The Board reviewed the results of the inspection of Ukio bankas carried out from 30 August to 1 October 2004.

Ukio bankas was instructed to remove the violations of legal acts and shortcomings in its operations indicated in the inspection report by 31 January 2005, including the functioning of the Bank’s internal control system, rules on the assessment and classification of doubtful assets, classification of loans granted by the Bank and specific provisions on such loans.The Bank was also instructed to improve its operational risk management system.

In addition, Ukio bankas was instructed to draw up a plan of removing violations of legal acts and the shortcomings established during the inspection.This document is to be presented to the Credit Institutions Supervision Department of the Bank of Lithuania.