Latvia: Conversion of LVL to EUR and redenomination procedures – Reminder with further cutover details

We hereby remind customers of Clearstream Banking that effective

1 January 2014

Latvia will convert its national currency from the Latvian Lats (LVL) to the Euro (EUR) based on the official (Central Bank) conversion rate fixed at EUR 1.00 = LVL 0.702804.

In addition to the details already provided in the previous announcement A13166 dated 6 November 2013, please take note of the following cutover procedures on the conversion and redenomination into EUR in the Latvian market.

Equities redenomination

As from 1 January 2014, all nominal capital values for equities will be expressed in whole euros. This means that all equities currently denominated in LVL will be redenominated into EUR (one to one as expressed in units).

As all equities will be redenominated into EUR nominal value as from above effective date, the customers should take note that no separate corporate action notification will be sent to the underlying shareholders.

Cash transactions special deadlines

We remind customers that:

• 20 December 2013 is the last day to instruct foreign exchange cash transactions in LVL for value date 27 December 2013.
• 27 December 2013 is the last day to settle Bridge cash transactions in LVL with value date 27 December 2013.
• 30 December 2013 is the last day to settle LVL cash transactions with early closing deadline at 10:30 CET.

Any cash transactions in LVL sent after the above respective deadlines will be rejected.

Cash customer balances conversion and handling of pending transactions

At close of business on 31 December, all remaining LVL cash transactions in LVL and any customer LVL cash balances will be converted into EUR with same day value. Customers will see a debit in LVL and a credit in EUR on their account.

Debit or credit interest will be applied to the customer cash balances in LVL. These will be charged or credited in EUR from 2 January 2014.

As from 1 January 2014, LVL will no longer be accepted as an eligible currency within Clearstream Banking.

As a consequence of the adoption of the EUR, we will no longer have a cash correspondent bank in Latvia. To make Euro payments into Clearstream Banking via CCB, customers are requested to use Deutsche Bank AG, Frankfurt as follows:

or process their payment via TARGET2 as shown in the TARGET2 payment instructions.

Securities settlement and handling of pending transactions

31 December 2013 will be the last day for internal settlement instructions and not 30 December 2013 as previously announced.

We remind customers that:

• 30 December 2013 is the last day for external settlement transactions FoP and DVP in LVL on Latvian equities. No early closing is applicable. Any remaining pending or new external settlement instructions on Latvian equities against payment in LVL sent after the usual deadline on 30 December and onwards will be rejected. Customers must enter new instructions against payment in EUR from 2 January 2014.
• There is a temporary freeze of transactions and acceptance of government bonds denominated in LVL in Clearstream until the above effective date.

Further information

The Creation Link Guide (Latvia) and the Market Profile (Latvia) available on our web site will be updated accordingly effective 2 January 2014. For further specific information or more general information regarding our products and services, please visit www.clearstream.com or contact Clearstream Banking Customer Service or your Relationship Officer.