Financing of Agency Activities

The 2006 operating maintenance costs of the Agency were in compliance with the estimate approved by the decision of the Board of Directors of the Agency of 27.12.2005.

In allocating funds to maintain the Agency, the Executive Board proceeded from the principle of reasonable sufficiency and the necessity to minimize costs. Total administrative overheads of the Agency in the period of report comprised 450.4 million rubles, which corresponded to 92% of the approved cost estimate (489.1 million rubles).

Agency maintenance costs were covered according to the Rules for financing expenses and profit use of the Deposit Insurance Agency state corporation approved by the Board of Directors on 15.09.2005 from proceeds earned by investing the property contribution of the Russian Federation. The abovementioned proceeds in the year of report totaled 814 million rubles, including 236 million rubles of proceeds from placing assets other than resources of the obligatory deposit insurance fund.

The yield of invested assets other than resources of the obligatory deposit insurance fund with account of revaluated securities comprised 8.9% p.a.. The placement of the mentioned temporarily surplus funds was carried out in compliance with the limits fixed by the Provisions for investing temporarily surplus monetary funds approved by the Board of Directors of the Agency on February 3, 2004.