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
87
28. OTHER LIABILITIES continued
Movements of provisions for possible losses on legal cases for the years ended December 31, 2008 and 2007 were as follows:
2008 2007
Balance at beginning of year 205,742
316,227 Reversal during the year Note 37
31,133 106,619
Others 1,707
3,866
Balance at end of year 176,316
205,742
Includes effect of foreign currency translation.
Management believes that the provision for possible losses on legal cases is adequate. 29. SUBORDINATED LOANS
a. By Currency:
2008 2007
Rupiah: Two-Step Loans TSL
Nordic Investment Bank NIB a 181,089
213,724 ASEAN Japan Development Fund-Overseas
Economic Cooperation Fund AJDF-OECF b 58,505
71,506 ASEAN Japan Development Fund-Export-Import
Bank of Japan AJDF-EBJ c 562
1,687 Asian Development Bank ADB d
- 688
240,156 287,605
Bank Indonesia 2,366,859
2,423,859 Total Rupiah
2,607,015 2,711,464
Foreign Currency: Two-Step Loans - Asian Development Bank ADB d
229,635 203,864
Two-Step Loans - Kreditanstalt fur Wiederaufbau, Frankfurt KfW e -
19,947 Total Foreign Currency
229,635 223,811
2,836,650 2,935,275
b. By Type:
2008 2007
Two-Step Loans TSL Nordic Investment Bank NIB a
181,089 213,724
ASEAN Japan Development Fund-Overseas Economic Cooperation Fund AJDF-OECF b
58,505 71,506
ASEAN Japan Development Fund-Export-Import Bank of Japan AJDF-EBJ c
562 1,687
Asian Development Bank ADB d 229,635
204,552 Kreditanstalt fur Wiederaufbau, Frankfurt KfW e
- 19,947
469,791 511,416
Bank Indonesia 2,366,859
2,423,859 2,836,650
2,935,275
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
88
29. SUBORDINATED LOANS continued
Two-Step Loans TSL a Nordic Investment Bank NIB
This account represents a credit facility obtained from NIB to the Government of the Republic of Indonesia, through the Ministry of Finance of the Republic of Indonesia, which re-lent the proceeds to
participating banks to finance projects in Indonesia. The details of these facilities are as follows:
Credit Facility Purpose
Repayment Period
Nordic Investment Bank IV Nordic Investment Bank III
To promote and finance high priority investments in Indonesia, primarily in the
private sector, or joint Indonesian and Nordic interests.
To promote and finance high priority investments in Indonesia, primarily in the
private sector, or joint Indonesian and Nordic interests.
April 15, 1997 - February 28, 2017 with the 1
st
installment on August 31, 2002. August 4, 1993 - August 15, 2008 with
the 1
st
installment on February 15, 1999.
The details of credit facilities from Nordic Investment Bank are as follows:
2008 2007
a Nordic Investment Bank IV NIB IV 181,089
202,394 b Nordic Investment Bank III NIB III
- 11,330
181,089 213,724
The interest rate on the NIB III and IV facility are based on a variable interest rate as determined by Bank Indonesia based on the prevailing average interest rates for the past six months for three-month
Certificates of Bank Indonesia. Bank has settled NIB III loan facility on August 15, 2008.
b ASEAN Japan Development Fund - Overseas Economic Cooperation Fund AJDF-OECF This account represents a credit facility obtained from AJDF-OECF to the Government of the Republic
of Indonesia, through the Ministry of Finance of the Republic of Indonesia, which re-lent the proceeds to participating banks to finance projects in Indonesia. The details of these facilities are as follows:
Credit Facility Purpose
Repayment Period
Pollution Abatement Equipment Program PAE
Small Scale Industry SSI To purchase equipment to prevent
pollution To finance small-scale industry
August 19, 1993 - August 19, 2013, with 1
st
installment on August 15, 1998 August 19, 1993 - August 19, 2013, with 1
st
installment on August 15, 1998
Details of outstanding credit facilities from the International ASEAN Japan Development Fund Overseas Economic Cooperation Fund AJDF-OECF are as follows:
2008 2007
a Pollution Abatement Equipment Program PAE 56,633
69,218 b Small Scale Industry SSI
1,872 2,288
58,505 71,506
