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
75
21. DEPOSITS FROM OTHER BANKS - TIME DEPOSITS
a. By Currency:
2008 2007
Rupiah 2,763,817
1,724,286 Foreign Currency
1,801,966 1,221,373
4,565,783 2,945,659
b. By Contract Period:
2008 2007
Less than 1 month 2,684,933
1,703,249 3 months
44,421 7,640
6 months 12,971
2,300 12 months 21,192 11,097
Over 12 months 300
- Total Rupiah
2,763,817 1,724,286
Foreign Currency: Less than 1 month
166,917 1,197,890
6 months 1,635,049
23,483 Total Foreign Currency
1,801,966 1,221,373
4,565,783 2,945,659
Included in deposits from other banks - time deposits are unrestricted investments - mudharabah time deposits amounting to Rp218,412 and RpNil as of December 31, 2008 and 2007, respectively.
c. Average Interest Rates cost of fund and Range of Profit Sharing Per Annum: Average interest rates cost of fund per annum:
2008 2007
Rupiah 7.56
7.39 Foreign Currency
3.29 3.71
Range of profit sharing per annum :
2008 2007
Rupiah 6.09 - 8.54
6.60 - 8.05 Foreign Currency
2.36 - 3.28 2.85 - 3.35
d. As of December 31, 2008 and 2007, the Bank had no time deposits from related party banks. e. As of December 31, 2008 and 2007, time deposits from other banks which are frozen and blocked as
bank guarantees, loan collateral and trade finance facilities amounted to Rp772,530 and Rp42,079, respectively.
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.
