BANK OF BAKU
AUDITORS REPORT AND FINANCIAL
STATEMENTS AT
31 DECEMBER 1997 Note 7 - Currency denominations of assets and liabilities
The currency denominations of assets and liabilities as of 31 December 1997
comprised:
Manats
Freely Convertible Currencies
Total
Assets
Cash and due from NBA
1,661,271
62,200
1,723,471
Credit institutions, gross
-
2,786,109
2,786,109
Customers, gross
918,415
511,013
1,429,428
All other assets
153,005
8,776
161,781
2,732,691
3,368,098
6,100,789
Liabilities
Customers
1,751,422
229,471
1,980,893
All other liabilities
62,424
8
62,432
1,813,846
229,479
2,043,325
Net position
918,845
3,138,619
4,057,464
The above table does not include the effect of reserves for
losses, which total AZM 93,153 as of 31 December 1997. The Bank has extended
loans and advances denominated in freely convertible currencies. Although these
loans are generally funded by the same currencies, their appreciation against
the Manat may adversely affect the borrowers repayment ability and therefore
increase the likelihood of future loan losses.
