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OPEN JOINT STOCK COMPANY AMRAHBANK JOINT STOCK BANK 

 

NOTES TO THE FINANCIAL STATEMENTS (Continued) 

FOR THE YEAR ENDED 31 DECEMBER 2008 

(in Azerbaijan Manats) 

27 

 

 

13.  LOANS TO CUSTOMERS 

 

Loans to customers comprise: 

 

 

31 December 

2008 

  31 December 

2007 

Recorded as loans: 

   

 

Loans to customers 

40,346,893   

44,830,976 

Net investment in finance lease 

181,527   

- 

 

 

40,528,420   

44,830,976 

Less: allowance for impairment losses 

 

(1,128,358)   

(6,612,226) 

 

   

 

Total loans to customers 

39,400,062   

38,218,750 

 

 

As at 31 December 2008 and 2007 accrued interest income included in loans to customers amounted 

to AZN 1,075,959 and AZN 1,178,365, respectively. 

 

Movements in allowances for impairment losses for the years ended 31 December 2008 and 2007 are 

disclosed in Note 5.

 

 

The table below summarizes the amount of loans secured by type of collateral, rather than the fair 

value of the collateral itself: 

 

 

31 December 

2008 

  31 December 

2007 

 

   

 

Loans collateralized by real estate 

16,280,272   

13,936,444 

Loans collateralized by vehicles 

9,482,658   

575,493 

Loans collateralized by cash deposit 

6,821,030   

2,811,176 

Loans collateralized by equipment 

2,217,434   

1,992,568 

Loans collateralized by guarantees 

1,420,485   

3,026,784 

Other collateral 

957,280   

2,908,087 

Unsecured loans 

3,349,261   

19,580,424 

 

   

 

 

40,528,420   

44,830,976 

 

   

 

Less: allowance for impairment losses 

(1,128,358)   

(6,612,226) 

 

   

 

Total loans to customers 

39,400,062   

38,218,750 

 

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OPEN JOINT STOCK COMPANY AMRAHBANK JOINT STOCK BANK 

 

NOTES TO THE FINANCIAL STATEMENTS (Continued) 

FOR THE YEAR ENDED 31 DECEMBER 2008 

(in Azerbaijan Manats) 

28 

 

 

 

31 December 

2008 

  31 December 

2007 

 

   

 

Analysis by sector: 

   

 

Individuals 

29,139,869   

32,505,044 

Manufacturing 

4,383,235   

1,101,289 

Construction 

4,075,314   

13,567 

Agriculture 

2,219,651   

2,093,432 

Trade and services 

710,351   

9,117,644 

 

   

 

 

40,528,420   

44,830,976 

 

   

 

Less: allowance for impairment losses 

(1,128,358)    

(6,612,226) 

 

 

   

 

Total loans to customers 

39,400,062   

38,218,750 

 

 

Loans to individuals comprise the following products: 

 

 

31 December 

2008 

  31 December 

2007 

 

   

 

Consumer loans 

14,600,451 

 

23,226,320 

Car loans 

9,266,594 

 

334,560 

Mortgage loans 

4,712,329 

 

4,219,000 

Repair purposes 

287,440 

 

1,954,334 

Corporate business loans 

268,055 

 

2,648,792 

Others 

5,000 

 

122,038 

 

 

 

 

 

29,139,869   

32,505,044 

 

 

 

 

Less: allowance for impairment losses 

(976,570)   

(6,283,533) 

 

 

 

 

Total loans to individuals 

28,163,299 

 

26,221,511 

 

 

As at 31 December 2008 and 2007 all loans were granted to companies operating in the Republic of 

Azerbaijan, which represents a significant geographical concentration in one region. 

 

As at 31 December 2008 and 2007 maximum credit risk exposure of loans to customers amounted to 

AZN 39,400,062 and AZN 38,218,750, respectively. As at 31 December 2008 and 2007 a maximum 

credit risk exposure on loan commitments and overdrafts extended by the Bank to its customers 

amounted to AZN 121,547 and AZN 384,380, respectively. 

 

As at 31 December 2008 and 2007 loans to customers included loans in amount of AZN 4,999,656 

and AZN 6,476,159, respectively, which terms have been renegotiated. Otherwise these loans would 

be past due or impaired. 

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