GENERAL PROVISIONS OF THE MEMORANDUM AGREEMENT Loan Repayment in 22 years with 10 years grace period: Rate of 2.5% - 2.

5% - 2.7% Provision for the granting of assistance until 2016 Elongation of the adjustment program until 2018 Payment of the first installment in May and then quarterly Quarterly monitoring of deviations of revenue and expenditure by Troika Provision that if the loan is repaid earlier, the program may be terminated.

CHANGES TO THE FINAL MEMORANDUM The program envisages a decline of 9% in 2013 Re-hiring of hourly wages and educational servants. Increase financial institutions fee from 0.11% to 0.15% Medical care for civil servants and families with more than 3 children at a fee of 1.5% on wages, pensions and family income CYTA, EAC Ports Authority are more likely to be privatized according to the Portuguese model Future revenues from licensing of plots within the Cyprus EEZ will be used for loan repayment Cancelling of the provision for reviewing gas revenues with Troika review and replacement by an obligation to present their way of distribution.

ADDITIONAL WAGE CUTS INSTEAD OF DISMISSALS Abolition of Easter benefit for pensions above 750 Additional wage cuts in 2013 o 0,8% for salaries of 0 - 2,000 o 1% for salaries of 2,001 - 3,000 o 1,5% for salaries of 3,001 - 4,000 o 2% on salaries above 4,000 o 1.5% on salaries as contribution for health care o Increase of property tax from 70 million to 75 million

Example 1 - Employee a salary of 2000 Reduce of 75 for 2013 Special contribution 0 Additional special contribution 2013 16 Healthcare 30 Total cuts for 2013 121

BENEFITS EARNED FOR LOANS: Non-performing loans with delay in payment of installments for more than 90 days The period of sale of the mortgaged properties (permanent residence) is increased from 24 to 30 months The period of 18 months will remain valid for the remaining mortgaged properties Settlement between banks - borrowers to adjust repayment terms of loans (end of April) Upon the enactment of the legislation, 45 days grace period will be given for adjustment of loans terms Creation of the banking / financial intermediary person Early repayment of loans will be exempted from taxes.

CHANGES IN BANKING Consolidation of Laiki Bank and the Bank of Cyprus In paragraph 1.22 of the memorandum, it was stressed that Laiki Bank and the Bank of Cyprus were insolvent The banking sector is dramatically reduced from 750% of GDP to 350% after the sale of the branches in Greece The tier should be increased to 9% Specific reference that to Pimcos worst scenario ( 8,9 billion) the 1,8 billion state support of Laiki Bank, and the needs of 37% of Cooperative Credit Institutions were not included Supervision of Cooperative Credit Institutions will temporarily be under the supervision of the Central Bank from July 2013 Each Cooperative Credit Institutions will undergo review to determine its viability The Cooperative Credit Institutions will not be restructured, but regrouped through mergers The money of the program will be used for the recapitalization of any other financial institution request Banking institutions receiving state support will provide a report to Troika every 3 months