According  to  the information available about the situation in Russia,

Unibank  of  Latvia  has  revalued  its  assets. Unibanka of Latvia has

evaluated its investments in government bonds of Russian Federation and

the  Ukraine,  as well as in other assets whose value can be influenced

by  the crisis in Russia, including loans to the clients whose business

is basically linked to export to Russia.

Based  on  the  Bank`s  traditionally conservative provisioning policy.

Unibank  of Latvia has allocated additional provisions amounting to 3.8

million  lats.  It  should  be  noted  that  these  provisions  can  be

considered as a loss.

Taking  into  account  everything  mentioned  above,  Unibank of Latvia

announces  that  its  adjusted  profit forecast for 1998 is 4.7 million

lats.

Investments  of  Unibank  of  Latvia  in  Russian Federation short term

treasury  obligations  (GKOs) is 9.9 million lats or 3.2 percent of the

Banks total assets.

GKOs  have  been  acquired  through  major Western investment banks and

these  investment banks now represent also the interests of the Unibank

of  Latvia  in  the  negotiations  with  Russian  government  regarding

restructuring the govermment`s internal debt.

In  addition,  the  Unibank  of Latvia had invested 2.9 million lats in

Ministry of Finance US dollars denominated bonds and Russian Federation

eurobonds  which  are  not  subject  to 90 day domestic debt moratorium

announced  by the Russian government. Besides, 1.4 million lats (or 0.5

percent  of  the  Bank`s total assets) are invested in eurobonds of the

govermment of the Ukraine denominated in US dollars and German marks.

It  should  be  noted  that  restructuring  of the internal debt of the

Russian  Federation has no influence on the liquidity of the Unibank of

Latvia,  because  it has attracted syndicated loan and issued eurobonds

which provide the Bank with long term credit resources.