<strong>Canadia</strong> <strong>Bank</strong> <strong>Plc</strong>.16. BORROWINGS<strong>2009</strong> <strong>2009</strong> 2008 2008US$ Million Riel US$ Million Rielequivalentequivalent(Note 2.1) (Note 2.1)Short-term overdraft with NBC - - 3,105,467 12,674Term borrowing 3,234,615 13,485 3,951,812 16,1273,234,615 13,485 7,057,279 28,801Term borrowing represents loan from KfW through the Ministry of Economy and Finance ("MoEF") that resultedfrom loan and finance agreements between the <strong>Bank</strong>, KfW and MoEF dated 23 April 2003 for Small and MediumEnterprise ("SME") term-lending I and dated 18 October 2005 for SME term- lending II.The agreements stipulatethat the funds borrowed from KfW through MoEF shall be sub-lent to Small and Medium Enterprises to buildSME capacity in Cambodia. The sub-loans are classified as an asset of the <strong>Bank</strong> under loans and advances tocustomers. KfW borrowing is unsecured and bears annual interest at an average rate of 6.98% (2008: 5.81%).17. SUBORDINATED DEBTOn 28 October 2005, the <strong>Bank</strong> entered into an agreement with Mr Pung Kheav Se, a main shareholder of the<strong>Bank</strong> through CIHP, to provide the <strong>Bank</strong> with a subordinated loan of US$7.08 million for the purpose ofacquiring shares in FTB. This subordinated debt is unsecured, non-interest bearing and has no fixed terms ofrepayment. This subordinated debt was approved by the NBC on 28 December 2005.The subordinated debt is treated as a liability for financial <strong>report</strong>ing purposes and included as capital Tier II inthe <strong>Bank</strong>'s net worth calculation in accordance with the guidelines of the NBC (see Note 33).51<strong>Annual</strong> Report <strong>2009</strong>18. PROVISION FOR STAFF GRATITUDE<strong>2009</strong> <strong>2009</strong> 2008 2008US$ Million Riel US$ Million Rielequivalentequivalent(Note 2.1) (Note 2.1)Provision for staff benefits 1,095,550 4,567 810,350 3,307The <strong>Bank</strong> has provided its employees with retirement and resignation benefit plan since August 2006. Movementsin the provision for staff benefits are as follows:<strong>2009</strong> <strong>2009</strong> 2008 2008US$ Million Riel US$ Million Rielequivalentequivalent(Note 2.1) (Note 2.1)At beginning of year 810,350 3,378 - -Provision 356,938 1,488 837,790 3,419Payments (71,738) (299) (27,440) (112)At end of year 1,095,550 4,567 810,350 3,307
<strong>Canadia</strong> <strong>Bank</strong> <strong>Plc</strong>.19. OTHER LIABILITIES<strong>2009</strong> <strong>2009</strong> 2008 2008US$ Million Riel US$ Million Rielequivalentequivalent(Note 2.1) (Note 2.1)Accrued interest payable 7,460,874 31,104 4,989,586 20,363Staff bonus payable 361,075 1,505 288,497 1,177Accounts payable 242,598 1,012 298,845 1,220Other taxes payable 186,991 780 166,921 681Accrued expenses 148,543 619 162,807 664Others 2,030,755 8,467 492,796 2,01110,430,836 43,487 6,399,452 26,11620. SHARE CAPITAL<strong>Annual</strong> Report <strong>2009</strong>52The <strong>Bank</strong>'s total authorised share capital is 40,545,000 shares with a par value of US$ 1 per share. All shares arefully paid and owned by CIHP.21. NET INTEREST INCOME<strong>2009</strong> <strong>2009</strong> 2008 2008US$ Million Riel US$ Million Rielequivalentequivalent(Note 2.1) (Note 2.1)Interest income:Loans and advances to customers 47,069,716 196,234 50,824,983 207,417Other banks 274,633 1,145 1,099,034 4,485NBC 108,719 453 785,224 3,205Total interest income 47,453,068 197,832 52,709,241 215,107Interest expense:Non-bank customers' deposits 18,434,025 76,851 12,419,340 50,683Other banks 1,256,323 5,238 704,617 2,876Borrowings 291,359 1,215 240,071 980Total interest expense 19,981,707 83,304 13,364,028 54,539Net interest income 27,471,361 114,528 39,345,213 160,568