PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
78
25. FUND BORROWINGS continued
f Trade Financing Facilities Trade financing facilities represent short-term borrowings with tenors between 129 to 185 days and
bear interest at LIBOR and SIBOR plus an applicable margin. These borrowings are guaranteed by letters of credit issued by Bank Mandiri. The details of the borrowings are as follows:
2006 2005
Bayerische Landesbank, Munchen 67,523
- Dresdner Bank, AG, Frankfurt
67,523 -
Natexis Banques Popularies 19,808
- Commerzbank, Singapore
- 196,000 154,854 196,600
g Others
2006 2005
i Rupiah
Bank Permata, Jakarta 50,000
- Bank Lippo, Jakarta
25,000 -
Bank Panin, Jakarta - 100,000
HSBC, Jakarta - 105,000
DBS Bank Ltd., Jakarta - 100,000
75,000 305,000
ii Foreign
Currency Others
- 6,895 - 6,895
26. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES
a. Commitment and contingent transactions in the normal course of Bank Mandiri activities that have credit risk are as follows:
2006 2005
Rupiah: Bank guarantees issued Note 45
3,746,502 3,797,255
Outstanding irrevocable letters of credit Note 45 892,418
603,455 4,638,920 4,400,710
Foreign Currency: Bank guarantees issued Note 45
4,535,248 4,695,898
Outstanding irrevocable letters of credit Note 45 3,024,142
3,236,305 Standby letters of credit Note 45
2,866,448 3,557,056
10,425,838 11,489,259 15,064,758 15,889,969
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
79 26. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES continued
b. By Collectibility:
2006 2005
Current 14,456,257 14,419,537
Special mention 469,192 831,259
Sub-standard 911 329,674
Doubtful 12,425 128,710
Loss 125,973 180,789
Total 15,064,758 15,889,969
Less: Estimated losses 514,399
594,084
Commitments and Contingencies - net 14,550,359 15,295,885
c. Movements of estimated losses on commitments and contingencies:
2006 2005
Balance at beginning of year 594,084
565,898 ReversalProvision during the year
37,670 80
Others 42,015 28,106
Balance at end of year 514,399 594,084
includes effect of foreign currency translation.
The minimum estimated losses on commitments and contingencies, under the guidelines prescribed by Bank Indonesia, as of December 31, 2006 and 2005, were Rp300,345 and Rp464,765, respectively.
Management believes that the estimated losses on commitments and contingencies provided for is adequate.
27. TAXATION a.
