PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
71
21. DEPOSITS FROM OTHER BANKS - TIME DEPOSITS continued b.
By Contract
Period:
2005 2004
Rupiah: Less than 1 month
3,993,650 7,959,739
3 months
13,513 254,438 6
months 5,885 185
12 months
880 4,300 4,013,928 8,218,662
Foreign Currency: Less than 1 month
17,707 623,183
3 months
53,559 112,913 6 months
203,565 108,131 12
months 273,370 17,093
Over 12 months 983,000
24,037 1,531,201 885,357
5,545,129 9,104,019
Included in deposits from other banks - time deposits are unrestricted investments - mudharabah time deposits amounting to Rp133,522 and Rp175,800 as of December 31, 2005 and 2004, respectively.
c. Average Interest Rates and Range of Profit Sharing Per Annum:
Average interest rates per annum:
2005 2004
Rupiah 8.27
6.50 Foreign Currency
2.99 0.93
Range of profit sharing per annum on mudharabah time deposits:
2005 2004
Rupiah 6.42 - 8.31
6.61 - 9.01 Foreign Currency
1.40 - 3.46 1.81 - 1.91
d. As of December 31, 2005 and 2004, the Bank had no time deposits from related party banks. e. As of December 31, 2005 and 2004, time deposits from other banks which are frozen and blocked as
bank guarantees, loan collateral and trade finance facilities amounted to Rp4,893 and Rp17,676, respectively.
f. In the second quarter of year 2005, Bank has entered into two callable parallel deposit transactions with Deutsche Bank relating to the sale contract of Government of Republic of Indonesia
Recapitalization Bonds. Such contract was initiated when the Bank transferred Government of Republic of Indonesia Recapitalization Bonds to Deutsche 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 Deutsche Bank and then the Bank received US Dollar loan amounting to US100
million full amount.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 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 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 of Republic of Indonesia Recapitalization Bonds to Deutsche Bank.
Based on the agreement Deutsche 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 Deutsche Bank during the period of transaction based on the movement of Rupiah against US Dollar spot rate.
Based on the agreement, Deutsche 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 Deutsche 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 Deutsche 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 Deutsche Bank as will be solely determined by Deutsche Bank. If the transaction is early terminated due to the occurrence of
Trigger Event, Deutsche Bank may opt to return the transferred Government Recapitalization Bonds. As of December 31, 2005, on the Bank’s balance sheet the US Dollar deposits from Deutsche 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.
