PT BANK MANDIRI PERSERO AND SUBSIDIARIES
Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001
Expressed in millions of Rupiah, unless otherwise stated
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58. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES Continued
c. Swap Agreement for Earning Assets Transferred on September 4, 2001 and Government Bonds with IBRA
Based on notarial deeds No. 7 and 8 dated September 4, 2001 of Mr. Teddy Anwar, S.H., SpN. and in accordance with Bank Mandiri’s letter to IBRA No. Dir.CRU044II2001 dated February
28, 2001, and joint decision letter of Committee of Policy and Finance Sector KKSK No. KEP.02K.KKSK022001 dated February 15, 2001 and Decree of the Minister of Finance No.
SR-110MK.062001 dated May 4, 2001, Bank Mandiri purchased swapped all the assets previously transferred including the related penalties and interest on September 4, 2001 to
IBRA for Government Bonds totaling Rp4,036,275 Seri FR0007 of Rp2,458,417 and Seri FR0009 of Rp1,577,858.
d. Swap Agreement for Loan Purchase and Government Bonds with IBRA Based on notarial deeds No. 17 and 18 dated September 6, 2001 of Mr. Teddy Anwar, S.H.,
SpN., Bank Mandiri has purchased swapped loans of Rp2,129,391 including penalties and interest of Rp951,021 for Government Bonds totaling Rp1,178,370 Government Bonds Seri
FR0007.
e. Transfer of Loans Below Rp5 billion and Loans Written-off Prior to Legal Merger and Related Recoveries to IBRA
Prior to the transfer of earning assets to IBRA as discussed in Note 58.c, there was a joint decision dated March 31, 1999 between the Ministry of Finance, IBRA and other directors of the
legacy banks agreeing to transfer only the loans with principal balance above Rp5 billion and supported by Article 2.1 of the Asset Transfer Agreement between the legacy banks and IBRA
dated March 31, 1999, and Article 3.2 of the Addendum on Temporary Recapitalization Agreement dated December 28, 1999 agreing to transfer only the loans with principal balance
above Rp5 billion.
The total of loans written-off below Rp5 billion and loans written-off prior to the legal merger as of October 31, 1999 and July 31, 1999 supposed to be transferred to IBRA amounted to
Rp1,631,633 and Rp11,326,295, respectively. A part of loans written-off below Rp5 billion amounting to Rp357,000 were transferred to IBRA in 1999, 2000 and 2001.
In 2001 and 2002, there were several meetings between Supreme Audit Board “BPK”, the Ministry of Finance, the Ministry of State-Owned Enterprises, Bank Indonesia BI and several
State-Owned Banks, including the Bank, to discuss the status of loans written-off below Rp5 billion and loans written-off prior to legal merger and related recoveries. BPK in its preliminary
report requires the Bank to return all recoveries before and after legal merger up to December 31, 2001 amounting to Rp2,385,791 to the Government.
The Committee on Financial Sector Policy Komite Kebijakan Sektor Keuangan KKSK issued decree No. Kep.01K.KKSK112002 dated November 26, 2002 stipulating the following:
• All loans written-off below Rp5 billion and loans written-off prior to legal merger should be transferred to IBRA in 2002.
• IBRA would exchange the loans with recapitalization bonds Assets Bond Swap as stipulated by KKSK decision letter No. 01K.KKSK072002 dated July 11, 2002 with a
recovery rate of 20. By executing the Assets Bond Swap, all recoveries related to the loans written-off below Rp5 billion and loans written-off prior to legal merger, belonged to the Bank.
PT BANK MANDIRI PERSERO AND SUBSIDIARIES
Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001
Expressed in millions of Rupiah, unless otherwise stated
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137
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58. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES Continued
