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Cooperation Agreement Between ACLEDA Bank Plc. and AGRIBANK

February 15, 2006

Mr. In Channy, General Manager of ACLEDA Bank Plc. and Kieu Trong Tuyen, Deputy General Director of AGRIBANK are signing an agreement

On February 15, 2006, ACLEDA Bank Plc. has reached an agreement with Vietnam Bank for Agriculture and Rural Development (AGRIBANK).

The main points of cooperation agreement are shown below:

1. Both parties agree to cooperate in providing to clients with various banking services determined in this agreement in compliance with the laws of each country, and with international customs and practices. Modes of payment are commercial payments by SWIFT Network, international trade by letter of credit and collection payment (D/A, D/P).
2. Both parties agree to frequently exchange information on monetary policies, credit, banking business, FX and money market, etc. of each country.
3. Both parties agree to frequently meet and exchange experience and support each other in banking business and technology.
4. Each party shall introduce its clients to the other party and suggest consultative services and new banking products of both parties to clients.
5. Based on this Framework Agreement, both parties agree to authorize their branches at the Vietnam-Cambodia border to sign cooperation agreement at branch level on providing treasury and settlement in VND and Khmer Riel services to their clients at the border.

Cooperation between ACLEDA Bank Plc. and AGRIBANK provides for:

1. Large distribution channels of both parties.
2. Branches at the Vietnam-Cambodia border of AGRIBANK and ACLEDA Bank.
3. Besides commercial services, retailing and wholesaling bank services are also available.
4. Many Vietnamese companies have planned to invest into production in Cambodia for export to third-party countries as Cambodia became an official member of the WTO in 2004, and therefore has tariff advantages.
5. The Vietnamese-Cambodian two-way trade revenue is expected to increase and the two-way trade revenue between the two countries in 2003 was reported at USD 323 million.

Exchanging gifts of ACLEDA Bank and AGRIBANK

ACLEDA ('Association of Cambodian Local Economic Development Agencies') was established in January 1993, by a group of friends as a Micro Finance Institution for micro and small enterprises' development and credit. With technical assistance from USAID, MPDF/IFC and UNDP – to name a few – a three-year program for transformation commenced in 1998, which was completed with the granting of a 'specialized' banking license in October 2000.

On December 1, 2003, after tripling its capital to USD 13 million, ACLEDA Bank was granted a full commercial banking license by the National Bank of Cambodia and re-named ACLEDA Bank Plc.

As at the end of December 2005, the branch network has expanded to 139 offices in 22 provinces and towns of The Kingdom of Cambodia with 2,484 currently employed staff. The value of the loan portfolio has reached more than USD 99.99 million and served more than 140,920 borrowing customers. Deposits have been more than USD 61.93 million with approximately 92,413 accounts. Its total assets have exceeded USD 123.61 million.

Our principal correspondents: Standard Chartered Bank, ING BELGIUM NV/SA, United Overseas Bank (Thai) Public Company Limited, HSBC Bank USA, American Express Bank Ltd., American Express Bank GMBH, Commonwealth Bank of Australia and other 37 International Correspondents banks in 41 countries with 255 corresponding branches.

Vietnam Bank for Agriculture and Rural Development is the largest bank in Vietnam in terms of assets in the amount of USD 11.8 Billion in 2006, and the total staff is 28,500 working in 2,002 branches & transaction offices. The total loan outstanding is USD 11.2 Billion with more customers in Vietnam. AGRIBANK is 9th principal partner of ACLEDA Bank Plc. on providing correspondent account in VND and USD currencies and the first international partner cooperating of ACLEDA Bank Plc., which has Nostro Correspondent Account in USD and KHR currencies.

Address of H.E. Neav Chanthana, Deputy Governor of the National Bank of Cambodia, and Mr. In Channy, General Manager of ACLEDA Bank on the Occasion of Signing an Agreement

Delegation of the agreement signing

In a great pleasure and honour, we have the presence of Deputy Governor of the National Bank of Cambodia; Deputy Governor of Takeo province, Cambodia; Representatives of Governors of Phnom Penh City and Kampong Cham province, Cambodia; Ambassador of Vietnam to Cambodia; Governors of An Giang and Tay Ninh Provinces, Vietnam; Deputy Managers of the Management Department and the International Cooperation Department of the State Bank of Vietnam; Excellencies; Lauk Chumteav; Chairman of ACLEDA Bank; Distinguished Guests; Ladies and Gentlemen; Value Customers; Businessmen and Businesswomen.

On the occasion of signing an agreement, H.E. Neav Chanthana, Deputy Governor of the National Bank of Cambodia said "Under the agreement, each bank will open accounts in their respective currencies with the other side, set up counters in the border areas of both countries and will cooperate in establishing common rules and procedures to provide banking services such as telegraphic transfer, commercial documents, payment orders, letters of credit and payment guaranties. In particular by reducing the need for large quantities of cash to settle commercial transactions, as is the case at present in the border areas risk is reduced, payment will be faster and more efficient and more capital will be mobilised."

From left to right, Mr. Chea Sok, Chairman of ACLEDA Bank, H.E. Neav Chanthana, Deputy Governor of the National Bank of Cambodia, and H.E. Nguyen Chien Thang, Ambassador of Vietnam to Cambodia

She added that "On behalf of the Government, I would like to express our thanks to ACLEDA Bank Plc. and the State Bank of Vietnam for Agriculture & Rural Development for this pioneering agreement which set new standards of interbank cooperation between our two countries and is an example for others to follow. I would also like to take this opportunity to thank the State Bank of Vietnam for Agriculture & Rural Development for showing their confidence in Cambodia by being the first major Vietnamese bank to open an office in Phnom Penh and ACLEDA Bank Plc. for its vision in fostering relationships with such important banks in the region. This is a significant milestone in the development of financial services in Cambodia and will encourage further trade and bring increased economic benefit to the community."

Mr. In Channy, General Manager of ACLEDA Bank Plc. said that "Since ACLEDA Bank Plc. became a full fledged commercial bank in December 2003, it has cooperated with 35 international correspondent banks in 41 countries with 253 branches by the end of December 2005 with the volume of remittance of US$53.4 M a year. Our new relationship with the State Bank of Vietnam for Agriculture & Rural Development, one of Vietnam's 'big four' state-owned banks is especially exciting as we have seen an enormous increase in cross-border payment transactions between our two countries in recent months."

He said "Under the cross-border payment cooperation agreement to be signed today, ACLEDA Bank Plc. expects that there will be the increase with more cross-border payment services such as telegraphic transfer, commercial documents, payment orders, letters of credit and payment guaranties to the both parties' clients, and will provide the extra benefit of reducing the need for large quantities of cash, and the risk that entails, in settlement of business transactions especially in the border areas."