Page 73 - Agib Bank Limited Annual Report 2021
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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
Agib Bank Annual Report 2021 www.agib.gm 73