PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
76
21. DEPOSITS FROM OTHER BANKS - TIME DEPOSITS continued
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 counterparty 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.
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 exercised 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 exercise 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 its 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 early terminated the callable zero coupon deposits with beginning balance amounting to Rp634,000 and paid cash as settlement of the transaction on
settlement date on June 20, 2007. On June 25, 2007, counterparty bank early terminated the callable zero coupon deposits with
beginning balance amounting to Rp634,000 and paid cash as settlement of the transaction on settlement date on December 21, 2007.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
77
22. SECURITIES SOLD WITH AGREEMENTS TO REPURCHASE
As of December 31, 2008, 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 VR0019 355,652
05182005 05182010
316,356 -
316,356 Bonds FR0019
231,028 11032004
11032009 285,060
- 285,060
Bonds VR0017 289,859
11042004 11042009
284,062 -
284,062
Total 876,539
885,478 -
885,478
Non Government Bonds
Rupiah Bonds
50,000 09052008
03042009 50,997
350 50,647
ORI 004 26,000
09222008 01222009
24,076 189
23,887 ORI 004
11,000 09232008
01232009 10,602
83 10,519
Bonds 7,000
12092008 02022009
6,335 9
6,326 Bonds
5,000 12092008
02022009 5,102
66 5,036
Total 99,000
97,112 697
96,415 Total
975,539 982,590
697 981,893
As of December 31, 2007, securities sold with agreements to repurchase were 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
The agreements to repurchase Government Bonds with counterparty banks serial numbers VR0013, VR0017, FR0019 and serial numbers VR0019 are associated with cross currency swap transactions with
the respective counterparties. There is no premium or discount on these contracts.
23. ACCEPTANCES PAYABLE
a. By Currency, Related Parties and Third Parties:
2008 2007
Rupiah: Payable to other banks
Third parties 85,168 74,688
Payable to debtors Third parties
8,783 118,195
Total Rupiah 93,951
192,883