Revizorski izvjestaj 2006 (pdf) - Montenegro berza

NOTES TO THE FINANCIAL STATEMENTS
December 31, 2006
CRNOGORSKA KOMERCIJALNA BANKA A.D., PODGORICA
10. CASH AND BALANCES WITH THE CENTRAL BANK (Continued)
The obligatory reserve is to be calculated by applying the aforementioned ratios on a weekly
basis, two days prior to the expiration of the maintenance period.
The Bank’s obligatory reserves represent the minimum deposits set aside into domestic accounts
and/or into Central Bank of Montenegro (“CBM”) accounts abroad, which may contain up to 10%
of the Bank’s obligatory reserve requirements by restricting the Treasury bills issued by the
Government of the Republic of Montenegro (Note 11). The Central Bank pays interest to the
banks on 40% of the obligatory reserve requirement deposited, at the annual rate of 1% up to the
eighth day of the month for the preceding month. The obligatory reserve is held in euro amounts.
11. TREASURY BILLS
Treasury bills are debt securities issued by the Central Bank of Montenegro on the behalf of the
Ministry of Finance of the Republic of Montenegro for a term of two months, three months and
six months.
Treasury bills stated at December 31, 2006 in the amount of EUR 1,461 thousand (2005: EUR
3,831 thousand) represent a portion of the obligatory reserve held with the Central Bank of the
Republic of Montenegro (Note 10) placed for a period of three to six months, at annual interest
rates ranging from 0.99 to 2.99 percent.
Treasury bills in which the bank invested funds during 2006 bear an annual interest rate of 0.49 to
5.5. percent with a declining tendency.
12. LOANS AND ADVANCES TO BANKS
December 31,
2006
(thousands of €)
December 31,
2005
Accounts with domestic banks 609 172
Accounts with foreign banks 1,894 10,225
Nostro-covered letters of credit and guarantees with foreign
banks 5,938 -
Placements with foreign banks 72,254 66,038
80,695 76,435
As of December 31, 2006, accounts with foreign banks, mostly from EU member countries, in the
amount of EUR 72,254 thousand are granted for periods from four to thirty days, at annual interest
rates ranging from 5.25 to 5.43 percent for placements in USD and from 3.40 to 3.55 percent for
placements in EUR.
Nostro-covered letters of credit and guarantees with foreign banks stated at December 31, 2006 in
the amount of EUR 5,938 thousand primarily relate to cash placed with Commerzbank, AG,
Frankfurt in the amount of EUR 5,273 thousand based on the loan approved by Kreditanstalt fur
Wiederaufbau ("KfW"), Frankfurt am Main, at annual interest rates ranging from 3.40 to 3.55
percent.
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