BANK OF BAKU
AUDITORS REPORT AND FINANCIAL
STATEMENTS AT
31 DECEMBER 1997 Note 15 - Financial commitments and contingencies Guarantees and letters of credit
The Bank had no guarantees and letters of credit outstanding as of 31 December 1997.
Undrawn loan commitments
At 31 December 1997 the Bank had no undrawn loan commitments.
Lease obligations
The Bank has no material long or short term lease obligations.
Legal
In the ordinary course of business, the Bank is subject to legal actions and complaints. Management believes that the ultimate liability, if any, arising from such actions or complaints will not have a material adverse effect on the financial condition or the results of future operations of the Bank.
Insurance
The Bank has not currently obtained insurance coverage related to property owned nor liabilities arising from errors or omissions. Liability insurance is generally not available in Azerbaijan at present.
