Annual Report 2010 - ProCredit Bank

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Annual Report 2010
26. Other borrowed funds
Other borrowed funds include long term borrowed funds from International
Financial Institutions and foreign banks. The table below
summarizes other borrowed funds as of 31 December 2010:
Initial loan Carrying value Maturity Interest RSD RSD
in EUR in EUR rate thousand thousand
2010 2010 2009
European Bank for Reconstruction
and Development (EBRD) 10,000,000 10,000,000 2010-2015 ERBR + 4.00% 1,054,982 –
Kreditanstalt
für Wiederaufbau (KfW) 55,000,000 43,571,428 2007-2017 1,75% - ERBR + 4,90% 4,596,707 2,894,472
International Finance Corporation 45,000,000 33,750,000 2007-2014 ERBR + 2,65% - 3% 3,560,564 1,917,776
Instituto de Credito Oficial 15,000,000 14,000,000 2004-2015 ERBR + 2.34% - 2.50% 1,476,975 1,438,332
Financierings - Maatschappij
voor Ontwikkelingslanden (FMO) 63,000,000 21,350,000 2005-2013 ERBR + 2.65% - 6,68% 2,252,387 4,104,041
EFSE 34,183,333 19,642,857 2006-2016 ERBR + 2.3% - 3.10% 2,072,285 843,821
Dexia Micro credit fund 7,000,000 7,000,000 2009-2012 6mERBR + 3.50% 738,487 671,222
PC Finance B.V. 125,000,000 32,850,000 2007-2012 6% 3,465,615 4,506,773
354,183,333 182,164,285 19,218,002 16,376,437
Accrued interest 276,175 330,701
Deferred fees (143,393) (163,708)
Total 19,350,784 16,543,430
The Group is obliged to comply with a number of debt covenants set
in the borrowing contracts, such as risk weighted capital adequacy,
single client exposure ratio, aggregate large exposure ratio, group
exposure ratio, related party exposure ratio, maturity gap to available
capital ratio, open credit exposure ratio, unhedged open foreign
currency position in any currency and in aggregate. One of the
most significant debt covenants is risk weighted capital adequacy
ratio, which as at 31 December 2010 was as follows:
Required (higher than) Actual
International Finance Corporation 12% 17,86%
FMO (loan to ProCredit Bank) 12% 17,31%
FMO (loan to ProCredit Leasing) 10% 17,31%
European Bank for Reconstruction
and Development 13% 17,86%
The methodology of calculation of the risk weighted capital adequacy
ratio is different, based on specific requirements of the loan
agreements.
As at 31 December 2010 and 2009 the Group was not in a breach
of debt covenants with respect to its borrowed funds, except for
the ratios in loan agreement with KfW showing the share of non
performing leases in total lease portfolio of ProCredit Leasing
and coverage of non performing leases with lease loss provisions.
ProCredit Leasing (borrower) has been granted with the waivers
from KfW (lender) for year 2010 and year 2011 based on which the
lender declares that they do not intend to exercise their rights to require
additional securities, or to terminate the loan agreement until
31 December 2010 and 31 December 2011 respectively, provided
that the borrower shall not be at any time in breach of any other
obligation under the loan agreement.
Loan agreement between PC Finance B.V. and ProCredit Bank is
dated on 20 March 2007 with the maturity of five years. Amount
of loan is EUR 47 milion; interest rate is 6% per annum and payable
annually; interest rate is fixed for the period of five years.