Page 73 - Agib Bank Limited Annual Report 2021
P. 73

32      Off balance sheet contingencies and commitments

               In the ordinary course of business, the bank conducts business involving guarantees, acceptances
               and performance bonds.  These facilities are offset by corresponding obligations of third parties.  At
               the year end, the contingencies were as follows:


                                                                                2021               2020

                 Guarantees and standby letters of credit                           -                  -

                 Letters of credit, acceptances and other documentary credits   793,059          890,135
                 Performance bonds and warranties                                   -                  -
                                                                              793,059            890,135


                      Nature of contingent liabilities

                    Letters of credit commit the Bank to make payment to third parties, on production of documents, which
               are subsequently reimbursed by customers.


               33      Related parties
               Transactions with key management personnel

               Key management personnel and their immediate relatives have transacted with the bank during the
               period as follows:

                                                                                  2021             2020
                                                                               Closing           Closing
                                                                               balance          balance
                 Murabaha                                                                       4,324   4,319
                 Qard Hasan                                                                             -   -
                 Other Loans (non mgt staff)                                          -                -
                                                                                  4,324                      4,319
               Profits charged on balances outstanding are a quarter of the rates that would be charged in an arm’s
               length  transaction.  The  mortgages  and  secured  loans  granted  are  secured  over  property  of  the
               respective borrowers.

               No impairment losses have been recorded against balances outstanding during the period with key
               management personnel, and no specific allowance has been made for impairment losses on balances
               with key management personnel and their immediate relatives at the period end.

               Key management personnel compensation for the period comprised:

                                                                                  2021             2020
                 Short-term employee benefits                                    10,971            9,177
                 Long-service leave                                                   -                -          Annual Report and IFRS Financial Statements
                 Post-employment benefits                                             -                -
                 Share-based payments                                                 -                -
                                                                                 10,971            9,177



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