MARFIN EGNATIA BANK S.A. - Irish Stock Exchange

any portion of the interest that is subsidised by the OEK, the Greek State or Greek State owned entities in
respect of such Subsidised Loan at the same time as the unsubsidised portion of interest paid by the
Borrower. In addition, a Greek State subsidised entity may not pay the subsidy at the same time as
amounts are paid by the Borrower.
Despite the fact that the Greek State, the OEK or any Greek State subsidised entity will not benefit from
sovereign immunity in respect of their respective obligations under Greek law, investors should note that
enforcement of judgments against the Greek State, the OEK or any Greek State subsidised entity may be
subject to limitations. If there is any change in Greek law or in administrative practice of the Greek State,
the OEK or any Greek State subsidised entity affecting the timing and amount of subsidised interest
amounts otherwise payable (but for that change) then this could adversely affect the ability of the Issuer
to make payments in respect of the Covered Bonds.
Default by Borrowers
Borrowers may default on their obligations under the Loans in the Cover Pool for a variety of reasons
which could in turn reduce the Issuer's ability to make payments on the Covered Bonds. Various factors
influence default rates, prepayment rates and the ultimate payment of interest and principal, such as
changes in the national or international economic climate, regional economic conditions, changes in
interest rates, inflation, the availability of financing, loss of earnings, unemployment, illness, divorce and
other similar factors. Other factors in Borrowers' individual or financial circumstances may affect the
ability of Borrowers to repay the Loans.
Suspension of Enforcement Proceedings
Any enforcement proceedings commenced against a borrower could be delayed or suspended as a result
of various provisions of Greek law. For further details see "The Mortgage and Housing Market in Greece
- Enforcing Security".
Following the example of other countries, a new law for the protection of borrowers has been passed by
the Greek Parliament which provides, among other things, that (a) enforced public auctions should be
made by sealed bids and, if there is more than one bidder, be followed by oral bids between the two
highest bidders, (b) the starting price of the auction must be at least equal to the “objective” price of the
property, as assessed for tax purposes, (c) each bid must be accompanied by a bank guarantee or banker’s
draft of an amount equal to the starting price, (d) properties being the sole residence of the debtor may not
be seized and judicially sold by credit or financial institutions for claims not exceeding the amount of
Euro 20,000, in cases where the debtor is in a state of proven impossibility to perform his contractual
obligation through no fault of his own. This restriction would not apply in case of debts secured by
mortgages and pre-notations granted with the consent of the debtor and thus will not apply to any of the
loans in the Cover Pool, which are all secured by such charges.
Auction Proceeds
The proceeds of an auction following enforcement against a property securing a Loan must be allocated
in accordance with Articles 975 and 976 of the Greek Civil Procedure Code. These Articles require the
notary public which acted as the auction clerk to deduct the expenses (including legal, bailiff's and
notarial fees) incurred in connection with the enforcement from the proceeds and then to satisfy, in
priority to other claims, claims against the relevant Borrower pursuant to employment relationships and
contracts for legal and educational services arising in the previous two years. For further details see "The
Mortgage and Housing Market in Greece - Enforcing Security" below.
As such there is the possibility that the Issuer will not receive sufficient proceeds following enforcement
against a property securing a Loan to discharge the amounts that are owed to it by the relevant Borrower.
Consumer Protection Laws
Greece has specific consumer protection legislation (Law 2251/1994 as repeatedly amended, most
recently by Law 3587/2007) following Directives 87/102 as amended by Directives 2002/65, 2005/29.
Furthermore, according to statutory delegation granted by the recent Law 3587/2007, the Ministry of
Development issued a decision in June 2008(No. Z1-798 published in Gov. Gazette 1353/B/11.7.2008),
by which a number of provisions of mortgage loans (such as the calculation of interest on the basis of a
360 day year, certain arrangement fees and prepayment penalties, termination of the mortgage loan and
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