COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2013

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

10. COMMITMENTS AND CONTINGENCIES

Employee Loan Program — Beginning in third quarter of 2006, the Company started to guarantee bank loans for certain of its key employees. Under the conditions of the guarantees, the Company is required to maintain a security deposit of 30% of the value of loans outstanding at each reporting date. While the program had been discontinued, the total commitment of the Company under these guarantees remained at $353 as of June 30, 2013. The Company estimates a probability of material losses under the program as remote, therefore, no provision for losses was recognized for the three and six months ended June 30, 2013.

Construction in progress — On December 7, 2011, the Company entered into an agreement with IDEAB Project Eesti AS for the construction of a 14,071 square meter office building within the High Technologies Park in Minsk, Belarus. The building is expected to be operational in the second half of 2013. As of June 30, 2013, the total outstanding commitment of the Company was $5,129.

Corporate Facilities — In June 2012, the Company entered into an agreement for the construction of corporate apartments located within the High Technology Park in Minsk, Belarus, which it intends to use for general business purposes. In June 2013 the Company amended the agreement to decrease the number of apartments to 12. As of June 30, 2013, the Company had no outstanding commitment related to corporate facilities. The construction is expected to be completed in 2013.

Employee Housing Program —As of June 30, 2013, the Company's total outstanding commitment under the Housing Program was $2,153. The Company estimates a probability of material losses under the program as remote, therefore, no provision for losses was recognized for the three and six months ended June 30, 2013.