PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
72
21. DEPOSITS FROM OTHER BANKS - TIME DEPOSITS continued
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
11.87 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 of Republic of Indonesia Recapitalization 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.
Based on the agreement, counterparty bank could also pre-terminate the agreement in the event of Trigger Events and Unwind Events, as follows :
a. Spot USDIDR exchange rate, as solely determined by counterparty bank, is at or above Rp11,000USD
b. The Credit Rating of the foreign currency long-term debt of the Republic of Indonesia is lower than specified rating or no longer rated by any rating agency.
c. Any event of default or restructuring on any of the foreign currency long-term debt of the Republic of Indonesia.
d. The Bank default on any of the additional top up deposit requires by the agreement. In the event that counterparty bank exercises its right to early terminate the transactions due to the
occurrence of Unwind Event, the Bank is required to pay Unwind cost to counterpart as will be solely determined by counterparty bank. If the transaction is early terminated due to the occurrence of Trigger
Event, counterparty bank may opt to return the transferred Government Recapitalization Bonds. As of June 30, 2006, on the Bank’s balance sheet the US Dollar deposits from counterparty bank is
recognized as Deposit from Other Banks – Time Deposit, while the Rupiah deposits, considering that the sales has not yet meet the Government Recapitalization Bonds sales recognition requirement, are
presented as Government of Republic of Indonesia Recapitalization Bonds Note 7.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
73
22. SECURITIES SOLD WITH AGREEMENTS TO REPURCHASE
