Page 102 - GTBANK GAMBIA ANNUAL REPORT 2021

Based on the advice of the solicitors, the Directors expects most acceptances to be presented, but
are of the opinion that none of the aforementioned reimbursement by the customer is normally
cases is likely to have a material adverse effect on immediate. Endorsements are residual liabilities of
the Bank and they are not aware of any other the Bank in respect of bills of exchange, which
pending and or threatened claims or litigation have been paid and subsequently rediscounted.
which may be material to the financial statements. Guarantees and letters of credit are given as
security to support the performance of a customer
to third parties. As the Bank will only be required to
Contingent liabilities and commitments
meet these obligations in the event of the
customer’s default, the cash requirements of these
In common with other banks, the Bank conducts
business involving acceptances, performance instruments are expected to be considerably below
bonds and indemnities. The majority of these their nominal amounts.
facilities are offset by corresponding obligations of
third parties. Contingent liabilities and Other contingent liabilities include transaction
commitments comprise acceptances, related customs and performances bond and are,
endorsements, guarantees and letters of credit. generally, commitments to third parties which are
not directly dependent on the customer’s
creditworthiness. Documentary credits commit the
Bank to make payments to third parties, are on
production of documents, which usually
reimbursed immediately by customers. The
Nature of instruments following tables summarise the nominal principal
amount of contingent liabilities and commitments.
An acceptance is an undertaking by a bank to pay
a bill of exchange drawn on a customer. The Bank

Acceptances, bonds, guarantees and other obligations for the account of customers:

In thousands of Dalasi Dec.-2021 Dec.-2020
Contingent liabilities:
Acceptances and guaranteed commercial papers - -
Transaction related bonds and guarantees 105,783 43,449
Customer Bonds - -
105,783 43,449
Commitments
short term foreign currency related transactions
Clean line facilities and letters of credit 464,459 295,598
Other commitments 300,394 413,910
870,636 752,957

30. Related parties

Related party transactions
Parties are considered to be related if one party has the ability to control the other party or exercise influence over
the other party in making financial and operational decisions, or one other party controls both. The definition includes
parent company, affiliates, subsidiaries, associates, and joint ventures as well as key management personnel. Below
are the transactions between the Bank and other subsidiaries in the Group during 2021 All transactions were carried
Annual Report 2021
out at arm’s length.

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