BANK OF BAKU AUDITORS REPORT AND
FINANCIAL STATEMENTS AT
31 DECEMBER 2001
Note 4 - Cash and short-term funds
2001
2000
Cash in hand
1,497,520
2,019,934
Balances with the NBAR
584,508
271,827
Blocked nostro accounts
580,517
173,776
Correspondent accounts with other banks
- Azerbaijan Republic
2,630
21,343
- Other countriesc
937,022
1,720,259
Total cash and short-term funds net
3,602,197
4,207,139
According to the regulations of the NBAR, the Bank is required to maintain reserve deposits equivalent to 10% of the statutory balances of its customer accounts, due to banks and other funds borrowed, which are calculated each month by using month-end balances. Accordingly, balances with the NBAR include a mandatory reserve deposit of AZM 415,199 (2000: AZM 261,384). Starting from 2000, the Bank is allowed by the NBAR to utilize 50% of these funds for purchase of short-term treasury bills. The remaining AZM 169,309 (2000: AZM 10,433) with the NBAR represents the balance of a correspondent account through which the Bank makes its AZM settlements with the other banks in the country and no interest is applicable on this balance.
For the purpose of the statement of cash flows, cash and cash equivalents are as follows:
2001
2000
Cash in hand
1,497,520
2,019,934
Loans to banks with original maturities of less than 3 months
835,492
114,125
Investment securities with original maturities of less than 3 months
