PASHA_BANK ANNUAL REPORT 2021

General Information Financial Information and Risk Management Review Information on Management and Corporate Governance Principles Coronavirus pandemic and developments in vaccination process continued to be the main agenda of global economy during the year 2021. Increase in inflation at a global scale has created a prominent downward risk on economic outlook, thus limiting growth. Central banks of developing countries started to take tightening steps in their monetary policies. In addition to Chinese real estate firm Evergrande’s failure in payments of two bond interests, the negative impact of energy crisis in China on expectations for global economic activities placed pressure on global risk perception. Deterioration in risk perception caused an increase in global stock market fluctuations. After low price levels in 2020 with the effect of the pandemic, oil prices rapidly increased in 2021 due to improvement in global demand and decrease in inventories caused by extension of production reduction of OPEC+ countries. Price of a barrel of brent crude oil exceeded USD 86 to reach the highest levels of the last three years. Concerns about current production increase plan of OPEC+ countries not meeting the global oil demand caused the oil prices to cruise around the highest levels of recent years. Overview of 2021 and Expectations for 2022 Global inflation Increasing inflation in global scale created a downward risk on economic outlook and limited growth.