Annual Report 2010 - ProCredit Bank

Financial Statements 65
(b) Loans and advances past due but not impaired
Loans and advances less than 90 days past due are not considered
impaired, unless other information is available to indicate the contrary.
Gross amount of loans and advances by class to customers
that were past due but not impaired were as follows:
31 December 2010 Business Agriculture Consumer Housing Other Finance Total
loans loans loans improvement leases
and housing loans
Past due up to 30 days 747,581 313,063 213,835 151,482 1,220 152,005 1,579,186
Past due 31 to 90 days 149,552 42,853 22,446 47,380 1,306 42,745 306,282
Total 897,133 355,916 236,281 198,862 2,526 194,750 1,885,468
Fair value of collateral 140,225 66,154 25,276 51,171 633 290,899 574,358
31 December 2009 Business Agriculture Consumer Housing Other Finance Total
loans loans loans improvement leases
and housing loans
Past due up to 30 days 303,909 120,941 6,241 32,292 148,209 133,603 745,196
Past due 31 to 90 days 106,854 37,600 5,086 15,212 15,825 60,873 241,451
Total 410,763 158,541 11,328 47,504 164,035 194,477 986,647
Fair value of collateral 246,339 124,457 2,329 23,316 7,523 303,191 707,155
For certain types of loans and advances to customers the Group is
well collateralized, with fair value of collateral exceeding amounts
of claims that are past due. This is particularly the case with financial
lease since it bears down-payment which protects the Group
against the depreciation of the leasing subject. In such a manner
the bank is protected against the potential default of the client.
The disclosed fair value of collateral is determined by local certified
evaluator and represents value realizable by the legal owners of
the assets. The impairment provisions reflect the probability that
management will not be able to enforce its rights and repossess
collateral on defaulted loans. Despite of the length in the process of
enforcing repossession of collateral, the Bank’s management will
vigorously pursue the outstanding debts with all possible means
at their disposal.
This applies to long-term loans to business or agriculture clients
exceeding EUR 50,000 and loans for housing purposes.
c) Loans and advances to customers individually impaired
Loans that are overdue by 91 or more days are considered to be impaired.
This includes in addition individually impaired loans. Those
are loans disbursed in the original amount of over EUR 50,000 that
are overdue by less than 90 days, but related to clients with identified
significant financial problems.
For year 2010 individually impaired loans amounted to RSD
1,053,380 thousand, with fair value of the collateral amounting to
RSD 899,557 thousand. For year 2009 individually impaired loans
amounted to RSD 412,565 thousand, with fair value of the collateral
amounting to RSD 381,652 thousand.
The following table shows composition of individually impaired
loans, allowances and fair value of collateral.
Business Agriculture Consumer Housing Finance Total
loans loans loans improvement leases
and housing loans
31 December 2010
Individually Impaired loans 699,077 153,881 793 83,710 115,919 1,053,380
Allowance 273,403 69,681 231 15,200 40,858 399,373
Fair value of collateral 570,737 135,004 295 77,602 115,919 899,557
31 December 2009
Individually Impaired Loans 226,800 46,748 45 21,260 117,712 412,565
Allowance 87,365 18,485 – 1,788 58,337 165,975
Fair value of collateral 216,192 28,263 76 19,409 117,712 381,652
(d) Loans and advances renegotiated
Renegotiation of loans and advances includes all activities undertaken
by the Group which alter any of the important conditions under
which the loans and advances were originally approved to a customer.
This includes change of the loan maturity, interest rate, change
of the due date of instalment, change of the instalment amount etc.
Renegotiation of the loans and advances to customers is not only
done in case that the customer is facing financial difficulties.
In case that the customer is facing financial difficulties that might
seriously jeopardise his/her loan repayment capacity, renegotiation
can be done only under the circumstances described in the
Credit Standards of the Group. Renegotiation is possible only if the
client is still able to generate sufficient cash flow to repay new –
restructured loan. Regardless of the loan amount disbursed and
regardless of the type of customer all loan renegotiation requests
include on-site visit to client and execution of monitoring on his/her
financial position. All renegotiation requests for loans originally