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Annual report of the Bank Guarantee Fund
2020
In 2020 the Fund conducted scheduled audits in three banks, the subject of which was the correct implementation
of the terms and conditions of support agreements, the quality of managing the acquired property rights as well as of the
information provided in settlement reports compared to the banks’ books.
Monitoring of aid from the cooperative banks’ restructuring fund
As of 31 December 2020, there were no active loans from the cooperative banks’ restructuring fund.
Throughout 2020, 102 banks benefited from financial aid in the form of loans from the cooperative
banks’ restructuring fund (105 loans), where:
12 loans were fully repaid in June and July 2020; these were loans granted in 2015 for planned
investments unrelated to the merger process and for the purchase of shares in an affiliating bank;
the remaining loans were remitted; in this group, two banks repaid the remaining principal of the
loans from the cooperative banks’ resolution fund, which due to the de minimis limit was not
subject to remission. The last loans were written off on 21 December 2020.
Monitoring of repayments and collaterals
In 2020, the timeliness of repayments of capital and interest instalments on the loan granted
from the banks’ restructuring fund was systematically monitored, and the timeliness and value
of the collateral provided was controlled. The loan was secured by a financial pledge on credit
receivables, assignment of credit receivables, financial pledge on the rights to cash accumulated
on bank accounts, and joint mortgage on real estate.
The documents related to the established collaterals and the form of collaterals complied with the
provisions of the concluded agreements, and their value was higher than the required minimum
level of collateral.
At the end of each quarter, receivables due to the financial aid provided to the bank were reviewed
and classified.
Classification of receivables
As of 31 December 2020, there were no delays in the repayment of principal and interest, and the
economic and financial situation of the beneficiary bank did not indicate any threat to the repayment
of the loan and interest payments. Due to the timeliness of repayments as well as the assessment
of the economic and financial situation of the bank, the receivable was classified in the “normal”
category.
102
Bank’s
Loans
105
Contents
Annual report of the Bank Guarantee Fund
2020
In 2020 the Fund conducted scheduled audits in three banks, the subject of which was the correct implementation
of the terms and conditions of support agreements, the quality of managing the acquired property rights as well as of the
information provided in settlement reports compared to the banks’ books.
Monitoring of aid from the cooperative banks’ restructuring fund
As of 31 December 2020, there were no active loans from the cooperative banks’ restructuring fund.
Throughout 2020, 102 banks benefited from financial aid in the form of loans from the cooperative
banks’ restructuring fund (105 loans), where:
12 loans were fully repaid in June and July 2020; these were loans granted in 2015 for planned
investments unrelated to the merger process and for the purchase of shares in an affiliating bank;
the remaining loans were remitted; in this group, two banks repaid the remaining principal of the
loans from the cooperative banks’ resolution fund, which due to the de minimis limit was not
subject to remission. The last loans were written off on 21 December 2020.
Monitoring of repayments and collaterals
In 2020, the timeliness of repayments of capital and interest instalments on the loan granted
from the banks’ restructuring fund was systematically monitored, and the timeliness and value
of the collateral provided was controlled. The loan was secured by a financial pledge on credit
receivables, assignment of credit receivables, financial pledge on the rights to cash accumulated
on bank accounts, and joint mortgage on real estate.
The documents related to the established collaterals and the form of collaterals complied with the
provisions of the concluded agreements, and their value was higher than the required minimum
level of collateral.
At the end of each quarter, receivables due to the financial aid provided to the bank were reviewed
and classified.
Classification of receivables
As of 31 December 2020, there were no delays in the repayment of principal and interest, and the
economic and financial situation of the beneficiary bank did not indicate any threat to the repayment
of the loan and interest payments. Due to the timeliness of repayments as well as the assessment
of the economic and financial situation of the bank, the receivable was classified in the “normal”
category.
102
Bank’s
Loans
105
Contents
