Annual Report 2010 - ProCredit Bank

74
Annual Report 2010
During the year ended 31 December 2010 and the year ended 31 December
2009 the following transactions were carried out with the
shareholders and other related parties from the group:
in EUR 2010 2009
Loans and advances* 572,461 990,741
Other receivable 25,536 2,277
Total assets 597,997 993,018
Deposits 12,058,918 –
Borrowings 22,972,070 16,948,080
Other liabilities 3,535 3,808
Subordinated liabilities 8,929,648 8,928,206
Total liabilities 43,964,171 25,880,094
Interest income – 9,501
Net fees and commissions (39,037) (29,739)
Other revenue 5,588 21,025
Income (33,449) (787)
Interest expense (2,448,817) (2,857,737)
Other expense (838,528) (551,662)
Expense (3,287,345) (3,409,399)
* The loans and advances granted in 2010, represents current accounts
placed to related parties, which are free of interest.
Transactions with key management personnel
in EUR 2010 2009
Management salaries (i) 383,276 311,833
Total expenses 383,276 311,833
(i) Included in the key management personnel are the Bank’s Managers
and Division Managers.
30. Reconciliation of profit under IFRS and Romanian Accounting
Standards as stipulated in Order No. 13/2008 issued by the
National Bank of Romania
in EUR 2010 2009
Loss for the year under
Romanian Accounting
Standards (i)
Adjustments for impairment
provisions on loans and
(4,463,936) (9,771,055)
advances to customers 1,079,468 3,302,232
Deferred tax income 369,679 1,443,008
Other items (147,288) (167,121)
Loss for the year under IFRS (3,162,077) (5,192,936)
(i) The loss for the year under Romanian Accounting Standards as
stipulated in Order No. 13/2008 issued by the National Bank of
Romania Governor on the approval of accounting regulations compliant
with EU Directives and applicable to credit institutions presented
above may change due to issuance of the statutory financial
statements pursuant to IFRS financial statements approval.
31. Reconciliation of equity under IFRS and Romanian Accounting
Standards as stipulated in Order No. 13/2008 issued by the
National Bank of Romania
in EUR 2010 2009
Equity under Romanian
Accounting Standards (i) 17,133,658 16,674,834
Loans related adjustments 4,245,569 3,362,223
Fixed assets related adjustments (111,611) (115,017)
Deferred tax asset 1,584,165 1,237,293
Equity under IFRS 22,851,781 21,159,333
(i) The equity as at 31 December 2010 under Romanian Accounting
Standards as stipulated in Order No. 13/2008 issued by the
National Bank of Romania Governor on the approval of accounting
regulations compliant with EU Directives and applicable to credit
institutions presented above may change due to issuance of the
statutory financial statements pursuant to IFRS financial statements
approval.
32. Subsequent events
In February 2011 the Bank closed 9 agencies/branches.
On 11 March 2011, the Bank signed a one year prolongation agreement
related to the “Stand-by line agreement (STB29)” with
ProCredit Holding A.G. The Stand-by line agreement specifies a revolving
loan facility amounting to EUR 10,000,000.
In the context of gradual alignment with the standards of European
Central Bank, Board of Administrators of National Bank of Romania
decided to reduce the rates for minimum compulsory reserves from
25% to 20% applied to resources attracted denominated in foreign
currency and with residual maturity lower than two years starting
with the application period 24 April – 32 May 2011. The minimum
compulsory reserves rates applied to resources attracted denominated
in local currency remained unchanged at 15%.
Starting 1 January 2011, the coverage limit per guaranteed depositor,
per credit institution stands at the equivalent in lei of EUR
100,000.