PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
71
21. DEPOSITS FROM OTHER BANKS - TIME DEPOSITS continued
b. By Contract Period continued: Included in deposits from other banks - time deposits are unrestricted investments - mudharabah time
deposits amounting to RpNil and Rp5,433 as of December 31, 2007 and 2006, respectively. c. Average Interest Rates and Range of Profit Sharing Per Annum:
Average interest rates per annum:
2007 2006
Rupiah 7.39
11.12 Foreign Currency
3.71 4.03
Range of profit sharing per annum on mudharabah time deposits:
2007 2006
Rupiah 6.60 - 8.05
5.58 - 8.53 Foreign Currency
2.85 - 3.35 1.20 - 3.55
d. As of December 31, 2007 and 2006, the Bank had no time deposits from related party banks. e. As of December 31, 2007 and 2006, time deposits from other banks which are frozen and blocked as
bank guarantees, loan collateral and trade finance facilities amounted to Rp42,079 and Rp11,721, respectively.
f. In the second quarter of year 2005, Bank has entered into two Callable Parallel Deposit transactions with counterparty bank relating to the sale contract of Government Recapitalization Bonds. Such
contract was initiated when the Bank transferred Government Recapitalization Bonds to Counterpart Bank and received the fund from the proceeds in Rupiah. A portion of the total transfer proceeds
amounting to Rp1,268,000 was placed back as deposit to counterparty bank and then the Bank received US Dollar loan amounting to US100 million full amount.
The details of Callable Parallel Deposits contracts are as follows:
Deposit Effective Date
Maturity Date Beginning
Balance Ending Balance
Interest Rate Rupiah
May 16, 2005 June 20, 2013
634,000 1,493,110
11.17 United States
Dollar May 17, 2005
June 15, 2013 US50 million
full amount US50 million
full amount 3 months
LIBOR + spread Rupiah
June 3, 2005 December 20, 2013
634,000 1,540,310
11.00 United States
Dollar June 8, 2005
December 15, 2013 US50 million
full amount US50 million
full amount 3 months
LIBOR + spread Zero Coupon Deposits
The deposit was funded from a portion of fund received from transfer proceeds of Government Bonds to counterparty bank.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
72
21. DEPOSITS FROM OTHER BANKS - TIME DEPOSITS continued
Based on the agreement counterparty bank has option rights to pre-terminate the transaction by early terminationwithdrawal of the Rupiah and US Dollar deposits on any of the redemption date each
year. The Agreement requires the Bank to add top up Rupiah deposit placement to counterparty bank during the period of transaction based on the movement of Rupiah against US Dollar spot rate.
On June 15, 2006, the Bank has excercised the right to early terminate the facility of US50,000,000 full amount with effective date May 17, 2005. On December 15, 2006, the Bank also has exercised
the right to early terminate the facility of US50,000,000 full amount with effective date June 8, 2005. In the event that counterparty bank excercise the option then the outstanding placement in Callable
Zero Coupon Deposit is not automatically terminated.
Based on the agreement, counterparty bank has option right to early terminate the agreement in effect of unwind events, which is the Bank failed to pay Rupiah deposit top up as required in the
agreement. If counterparty bank exercised their option right to early terminate the agreement due to unwind
events, the Bank has to pay unwind cost to counterparty bank as determined later by the counterparty bank.
In addition counterparty bank has option right to early terminate the transaction if counterparty bank assess the fund received in the form of callable zero coupon deposits has higher interest rate than the
market interest rate, as the counterparty bank has executed on May 28, 2007 and June 25, 2007.
On May 28, 2007, counterparty bank terminated the callable zero coupon deposits with beginning balance amounting Rp634,000 and paid cash as settlement of the transaction on settlement date
June 20, 2007.
On June 25, 2007, counterparty bank terminated the callable zero coupon deposits with beginning balance amounting Rp634,000 and paid cash as settlement of the transaction on settlement date
December 21, 2007. 22. SECURITIES SOLD WITH AGREEMENTS TO REPURCHASE
As of December 31, 2007, securities sold with agreements to repurchase are as follows:
Securities Nominal
Value Commen-
cement Date
Maturity Date
Repurchase Value
Unamortized Prepaid
Interest Expense
Net Value Government Bonds
Rupiah Bonds VR0013
617,500 06072005
01072008 617,500
- 617,500
Bonds VR0031 669,000
12192007 01032008
602,746 259
602,487 Bonds VR0031
446,000 12192007
01032008 401,829
172 401,657
Bonds VR0019 355,652
05182005 05182010
316,356 -
316,356 Bonds FR0040, FR0043
and FR0047 283,000
12282007 01282008
297,527 34
297,493 Bonds FR0019
231,028 11032004
11032009 285,060
- 285,060
Bonds VR0017 289,859
11042004 11042009
284,062 -
284,062 Bonds FR0020, FR0027
and FR0033 100,000
12282007 01112008
110,021 293
109,728
Total 2,992,039
2,915,101 758
2,914,343
