Annual Report - Raiffeisen Bank Kosovo JSC

Financial Statements
The table below summarises the effective interest rates by major currencies for major monetary
financial instruments. The analysis has been prepared using year end effective rates.
In percentage 31 December 2006 31 December 2005
EUR USD CHF GBP EUR USD CHF GBP
Assets
Placements on call
with other banks 2.9 5.0 1.5 N/a 2.3 4.3 N/a N/a
Term deposits with
other banks 3.1 4.9 N/a N/a 2.4 4.0 N/a N/a
Loans and advances
to customers 14.8 N/a N/a N/a 15.3 N/a N/a N/a
Liabilities
Customer accounts
Term deposits 3.4 1.6 0.7 3.4 3.0 1.3 0.8 3.7
Savings accounts 1.7 0.3 0.3 0.3 1.7 0.5 N/a N/a
21. Contingencies and Commitments
Legal proceedings. From time to time and in the normal course of business, claims against the Bank
are received. As at 31 December 2006 the Bank had no legal claims against it that were not
both minor and in the ordinary course of business. On the basis of internal and external advice,
Management is of the opinion that no material losses will be incurred and accordingly no provision
has been made in these financial statements.
Tax regulations. As disclosed in Note 2, the legal and regulatory framework in Kosovo is currently
at an early stage of development. The Regulation on Profit Taxes in Kosovo was passed on 20
February 2002 and an improved version was presented in December 2004, and as such there
is no established practice of tax assessments and there is no formal guidance as to how specific
rules should be applied in practice. Due to the presence in Kosovo’s commercial regulations (and
tax regulations in particular), of provisions allowing more than one interpretation, Management’s
judgement of the Bank’s business activities may not coincide with the interpretation of the same
activities by tax authorities.
Capital commitments. As at 31 December 2006 the Bank has no capital commitments in respect of
the purchase of equipment and software (31 December 2005: Nil).
Glossary Macroeconomic Environment Overview Segment Reports Financial Statements Addresses
www.raiffeisen-kosovo.com
65