Annual Report 2012 - Raiffeisen Bank Kosovo JSC

64
The total outstanding contractual amount of commitments to extend credit and guarantees does not necessarily represent
future cash requirements, as these financial instruments may expire or terminate without being funded.
Interest Rate SWAPs. The main purpose of these instruments is to mitigate the interest rate risk associated to the fixed rate
lending. As of December 31, 2012, the Bank has 45 interest rate SWAP contracts with a notional amount of € 42,000
thousand (December 31, 2011: € 32,700 thousand). The Bank pays fixed and receives variable interest rates. The net
valuation result of these contracts for the year ended 31 December 2012 € 518 thousand (2011: € 1,163 thousand).
25. Related party transactions
For the purposes of these financial statements, parties are considered to be related if one party has the ability to control
the other party or exercise significant influence over the other party in making financial or operational decisions as
directed to the substance of the relationship, not merely the legal form.
Banking transactions are entered into in the normal course of business with significant shareholders, directors, companies
with which the Bank has significant shareholders in common and other related parties. These transactions include
settlements, placements, deposit taking and foreign currency transactions. These transactions are priced at market rates.
The outstanding balances at the year end and related income and expense items during the year with related parties
are as follows:
2012 2011
Other
Other
Parent related Parent related
party
party
Statement of financial position
Cash and cash equivalents and mandatory reserve 5,272 - 6,434 -
Due from other banks - - - -
Loans and advances to customers - 11,708 - 9,029
Other Loans 20,873 - 30,920 -
Investment securities - - - 117
Other assets 53 10 53 14
Liabilities
Customer accounts - 2 - 1
Borrowings 220 100 - 1,206
Other liabilities 3,580 61 2,839 167
Statement of comprehensive income
Interest income 587 344 507 236
Interest expense (808) (4) (597) -
Net fees and commission (162) (38) (118) (18)
Net valuation result financial instruments carried at fair value (518) (1,163) -
Net valuation of equity investments - - - 84
Other operating expenses (1,188) (37) (733) (1)
Purchase of intangible assets 244 - 116 -
Off Balance Sheet
Guarantees - - - -
Letter of credit - - - 120
26. Subsequent events
There are no significant events after the reporting date that may require adjustment or disclosure in the separate financial
statements.