Ilya Zibareff, the Head of Alfa-Bank’s Mortgages Division, spoke on the dynamic and competitive mortgage market in Russia at the “2nd Annual Achieving Efficiency in CEE Mortgage Business” conference in Vienna, January 18-19, 2007. Experts from the World Bank, Deutsche Bank, HVB, ING Bank, the European Commission and leading regional financial institutions attended the conference hosted by Jacob Fleming Group to share expertise on how to develop product range, traditional and alternative distribution channels, risk management, refinancing and securitization in the mortgage business in Russia and CEE.

Alfa-Bank is one of the largest banks in Russia. The Bank recently opened mortgage-lending centers in Moscow, St. Petersburg, Nizhny Novgorod, Novosibirsk, Ufa, Kazan and Samara and plans to offer mortgage loans in all cities in Russia with more than 1 million residents in 2007. The bank’s clients may receive consulting services, obtain housing loans, finalize deals, pay initial installments, etc in accordance with the highest standards. The Bank’s network of more than 200 branches and offices in Russia and the CIS offers a great opportunity to develop the bank’s retail business and mortgages in particular.

According to Alfa-Bank analysts, priority in the retail lending market shifted to mortgages in 2006. Mortgage growth accelerated, driving the market to a total size of $6.2 billion. In the coming twelve months, they expect Russian banks to focus in particular on mortgages and credit cards.