After more than 22 years of successful operations in Hungary, based on the receipt of all necessary regulatory and court approvals, Citibank Zrt. will merge with Citibank Europe plc ("CEP"), an Irish fully licensed regulated bank, by way of a cross border merger, effective January 1, 2009 ("Effective Time"). The name of the new branch will be Citibank Europe plc Hungarian Branch Office.

• New Branch Data Information Effective January 1, 2009 

  Official Company Name	Citibank Europe plc Magyarországi Fióktelepe
  Official English translation of the Company Name	Citibank Europe plc Hungarian Branch Office
  Address (unchanged)	1051 Budapest, Bank Center, Szabadság tér 7.
  Company Registration Number	01-17-000560 Metropolitan Court acting as Court of Registration
  Tax Number	22574361-2-41
  EU Tax Number	HU22574361
  Statistical Code	22574361-6419-226-01
  Bank Account Number (unchanged)	19017004-00201081-00000000
  IBAN (unchanged)	HU79190170040020108100000000
  SWIFT code (unchanged)	CITIHUHX

• Information on the Irish Deposit Protection Scheme ( 138 KB)
• Information on the Irish Investment Protection Scheme ( 124 KB)

Costumer information letter

• Customer information letter about receipt of regulatory and court approvals for the branch conversion

Questions & Answers

1. Why is this branch conversion taking place?
2. What is the benefit to the clients?
3. How will this branch conversion impact the clients?
4. Will this branch conversion bring any extra administrative burden for me?
5. Will there be any changes to the products and services currently offered by Citibank in Hungary?
6. Will there be any changes in the customer deposit protection?
7. Will the investment protection scheme change?
8. When will the branch conversion become effective?
9. Will Citibank Zrt. and its statutory bodies cease to exist?
10. Will there be any changes to the regulatory and supervisory bodies of the new branch?
11. What kind of company is Citibank Europe plc?
12. In what other European countries does Citibank Europe plc operate?
13. Will other Citi subsidiaries in the region be converted into a branch of Citibank Europe plc?

1. Why is this branch conversion taking place?

The branch conversion is part of a global initiative within Citi to rationalize the legal structure in many countries where we operate, a process that started three years ago in our region.
As a branch of CEP, we will be part of a European entity with a larger balance sheet and a greater lending capacity that will make us an even stronger partner for our clients in Hungary and will allow us to expand more effectively in the market.
A significant advantage consists also in the fact that our Hungarian business will now be backed by Citibank Europe plc which has a credit rating of A2 by external rating agency Moody's.

2. What is the benefit to the clients?

As a branch of CEP, we will be part of a European entity with a larger balance sheet and a greater lending capacity that will make us an even stronger partner for our clients in Hungary and will allow us to expand more effectively in the market.
As Citibank Europe plc Hungarian Branch Office we will remain a member of Citi, the world's leading financial services group and will continue to offer our global products and services as well as leading with our innovations to bring the best financial solutions for our clients in Hungary.

3. How will this branch conversion impact the clients?

4. Will this branch conversion bring any extra administrative burden for me?

We do not anticipate that the branch conversion will bring any administrative burden for our clients.
All existing client contracts will automatically transfer to CEP pursuant to legal succession between Citibank Zrt. as the current service provider and CEP, as general legal successor of Citibank Zrt.

5. Will there be any changes to the products and services currently offered by Citibank in Hungary?

As Citibank Europe plc Hungarian Branch Office we will remain a member of Citi, the world's leading financial services group and will continue to offer our global products and services as well as with our innovations to bring the best financial solutions for our clients in Hungary.
As a branch of CEP, we will be part of a European entity with a larger balance sheet and a greater lending capacity that will make us an even stronger partner for our clients in Hungary and will allow us to expand more effectively in the market.

6. Will there be any changes in the customer deposit protection?

As a branch of an Irish regulated bank and as of the Effective Time, Citibank Europe plc Hungarian Branch Office will be subject to the Irish Deposit Protection Scheme ("Scheme"). The Irish Government issued a declaration stating that, as of 20 September 2008, the cover under the Scheme increased from EUR 20,000 to EUR 100,000, per depositor per institution to which the Scheme applies. This cover will apply to 100% of each deposit (individual and small companies¹), up to the maximum of EUR 100,000.

The regulations effecting this change have not yet been passed into Irish law. Therefore, further changes may be made to the terms of the Scheme. Pending introduction of these regulations, we recommend you access the official website of the Irish Financial Services Regulatory Authority.

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¹ A private company will be treated as small company in respect of any financial year of the company if, in respect of that year and the financial year of the company immediately preceding that year, the company satisfies at least two of the conditions specified below: (i) its balance sheet total for that year shall not exceed IEPL1,500,000 as of October 7, 2008 EUR 1,905,000 (approx. HUF 475.74 million; NBH exchange rate as of October 7, 2008); (ii) the amount of its turnover for that year shall not exceed IEPL3,000,000 as of October 7, 2008 EUR 3,893,000 (approx. HUF 972.2 million; NBH exchange rate as of October 7, 2008); (iii) the average number of persons employed by the company in that year shall not exceed 50.

7. Will the investment protection scheme change?

With regards to investment protection we will follow the Irish regulation in compliance with the applicable European Directive. The compensation will cover 90% of the total invested amount of the eligible customers, up to a maximum payout of EUR 20,000.
Further information on the investment protection scheme will be available on our website at www.citibank.hu.

8. When will the branch conversion become effective?

The effective date is January 1, 2009. All necessary regulatory and court approvals have been obtained.

9. Will Citibank Zrt. and its statutory bodies cease to exist?

Yes, Citibank Zrt. will merge into Citibank Europe plc and Citibank Europe plc Hungarian Branch Office will assume the entire existing organizational and legal structure. As of the Effective Time, the current business of Citibank Zrt. will be conducted in Hungary through a branch of CEP: "Citibank Europe plc Hungarian Branch Office".

10. Will there be any changes to the regulatory and supervisory bodies of the new branch?

Citibank Europe plc Hungarian Branch Office will remain under the supervision of the Hungarian Financial Supervisory Authority (PSZÁF), especially in the area of consumer protection, and the National Bank of Hungary, in accordance with the Hungarian legislation.
In addition, we will be primarily supervised by the Irish Financial Services Regulatory Authority, which supervises the whole Citibank Europe plc, including its branches.

11. What kind of company is Citibank Europe plc?

Citibank Europe plc is a public limited company, a fully licensed bank based in Ireland that is rated A2 by Moody's external rating agency. It is subject to Ireland's financial regulatory body.
CEP had a balance sheet size of EUR 98.5 million and a capital base of EUR 34 million at 31 December 2001, compared with values at year-end 2007 of EUR 6.8 billion and EUR 1.4 billion, respectively.

12. In what other European countries does Citibank Europe plc operate?

Under various legal forms, Citibank Europe plc operates in many countries in the region, including Germany, France, Great Britain, Austria, Belgium, Italy, the Czech Republic and Poland.

13. Will other Citi subsidiaries in the region be converted into a branch of Citibank Europe plc?

We successfully converted the Czech Republic subsidiary into a branch of CEP effective January 1, 2008 and in addition to Citibank Zrt. we will convert, Slovakia and Romania effective January 1, 2009 as all necessary regulatory and court approvals have been obtained for all three jurisdictions.

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