Contents - Equity Bank Group

Notes to the Financial StatementsFor the year ended 31st December 200726. Deferred tax assets and liabilities (continued)Movements in temporary differences during the yearIn millions of Kenya Shillings Opening Recognised Recognised ClosingBalance in profit or loss in equity balance2007Property and equipment, and software (41) (12) - (53)Available-for-sale securities - - - -Allowances for loan losses 20 (20) - -Other 10 (2) - 8(11) (34) - (45)2006Property and equipment, and software (15) (57) - (41)Available-for-sale securities - - - -Allowances for loan losses 10 30 - 20Other 1 11 - 10(4) (17) - (11)27. Long-term borrowingsIn millions of Kenya Shillings 2007 2006Dexia Micro Credit Fund 763 485Blue Orchard Loans for Development SA 636 -Growth Management Limited 636 -Deutsche Bank Microfinance Fund 452 -Global Microfinance Facility 477 -Nenderlandse Financierings Maatschappij VoorOntwikelinslanden N.V (FMO) 1,507 -Ministry of Youth Affairs 50 -4,521 485During the year, the Bank obtained the following loans:i) Medium term loan of US$ 12,000,000 from Dexia Micro Credit Fund, a company incorporated in Luxembourg. The loan, whichis secured by directors’ guarantee, accrues interest at the rate at 8% p.a. and will mature on 01th December 2009. The effectiveinterest rate is 8%. Finance cost of KShs 8m has been included in the income statement account.ii)Long term loan of US$ 10,000,000 from Blue Orchard Loans for Development SA, a company incorporated in Luxembourg. Theloan, which is secured by directors’ guarantee, accrues interest at the rate of 8.75% p.a. and will mature on 01th June 2012. Theeffective interest rate is 10.29%. Finance cost of KShs 5m has been included in the income statement.602007 Annual Report and Financial Statements