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FINANCIAL INFORMATION
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
NOTES TO UNCONSOLIDATED FINANCIAL STATEMENTS
AT 31 DECEMBER 2015
(AMOUNTS EXPRESSED IN THOUSANDS OF TURKISH LIRA (“TL”) UNLESS OTHERWISE STATED. )
7. Information on provisions
Information on general provisions
Current Period
Prior Period
Provisions for Loans and Receivables in Group I
15,007
15,004
Additional provisions for the loans with extended payment plan
-
-
Provisions for Loans and Receivables in Group II
227
-
Additional provisions for the loans with extended payment plan
-
-
Provisions for Non-Cash Loans
4,836
4,680
Other
-
-
Total
20,070
19,684
Provisions for currency exchange gain/loss on foreign currency indexed loans
Current Period
Prior Period
Foreign Exchange Provisions for Foreign Currency Indexed Loans
(*)
136
30
(*)
Foreign exchange differences of foreign currency indexed loans are netted off with loans.
Special provisions set aside for non-funded and non-cash loans
As of 31 December 2015, special provisions set aside for non-funded and non-cash loans amounting to TL 1,520 (31
December 2014: TL 1,547).
Reserve for employee termination benefits
The Bank reserved for employee severance indemnities in the accompanying unconsolidated financial statements using
actuarial method in compliance with the updated “TAS 19 - Employee Benefits”. Accumulated all actuarial gains and
losses in equity are recognized in other capital reserves.
As at 31 December 2015 and 31 December 2014, the major actuarial assumptions used in the calculation of the total
liability are as follows:
Current Period
Prior Period
Discount Rate
3.12%
2.84%
Expected Rate of Salary/Limit Increase
7.56%
5.00%
Estimated Employee Turnover Rate
5.30%
5.44%
In accordance with existing Turkish Labor Law, the Bank is required to make lump-sum termination indemnities to each
employee who has completed one year of service with the Bank and whose employment is terminated due to retirement
or for reasons other than resignation or as mentioned in related legislation. The computation of the liability is based
upon the retirement pay ceiling announced. The applicable ceiling amount as at 31 December 2015 is TL 3,828 (full TL)
(31 December 2014: TL 3,438 (full TL)). Reserve for employee termination benefits are calculated via net present value
of estimated provision of probable liabilities will be arised in the future and reflected in the financial statements.