Page 139 - BKT Annual Report 2023 EN

ANNUAL REPORT 2023 70
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
(amounts in USD, unless otherwise stated)

Dividend payable represents the dividend payment suspended based on the respective decision of the Supervisory Council of Bank
of Albania until 2022 end, paid in February 2023 respectively, following Bank of Albania decisions (See note 1).

Creditors mainly represent balances that relate to old transactions of the Albanian Government and are pending on the future
determination of the rightful owner of these amounts.

Bonus payable represents the accrued yearly performance bonus for the Bank’s staff and management, which is expected to be paid
within the first quarter of 2024.

Liability for retiring employees represents a specific fund created in 2002 by the Bank, which will be paid to staff on their retirement.
The investment in this fund has been stopped by the Bank on 30 September 2010 (See note 3(s).ii.).

22. DEBT SECURITIES ISSUED

On December 4 , 2023 BKT issued a 4-year term bonds with a total nominal value of EUR 30,720,000 and a coupon rate of 4%.
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Pursuant to the approvals granted by Bank of Albania, the bond is classified as “Eligible Liability” for MREL purposes based on Law
no. 133/2016 “On the recovery and resolution of Banks in the Republic of Albania” and Bank of Albania Regulation nr 78/2020.

23. SUBORDINATED DEBT

Subordinated debt of USD 52,182,032 (31 December 2022: USD 50,319,179) represents the equivalent amount of a ten-year facility
of EUR 25 million, bearing an interest rate of 9.095% and payable on its maturity date with bullet payment. Subordinated debt was
obtained from the Green for Growth Fund Southeast Europe, under the Subordinated Term Loan Facility Agreement, signed on 22
December 2015 with the purpose of granting loans related to Energy Efficiency and Renewable Energy investments. Pursuant to
the approvals granted by Bank of Albania, the subordinated debt was classified as second-tier capital and included in the regulatory
capital of the Bank. Moreover, during 2022, BKT Kosova obtained the same ten-year facility instrument from Green for Growth Fund
Southeast Europe and European Fund For Southeast Europe amounting in total at EUR 22 milion, bearing an interest rate of 7.85%.

24. SHAREHOLDER’S EQUITY AND RESERVES

Share Capital
At 31 December 2023 the authorised share capital comprised 24,291,498 ordinary shares (31 December 2022: 24,291,498). The
shares have a par value of USD 12.35. All issued shares are fully paid. The holder of ordinary shares is entitled to receive dividends, if
declared. All shares rank equally with regard to the Bank’s residual assets.

Reserves
Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign
operations as well as from the translation of consolidated financial statements from functional currency to presentation currency.

Fair value reserve and impairment of FVOCI
c) Fair value reserve
The fair value reserve includes the cumulative net change in the fair value of available-for-sale investments (investment securities
measured at FVOCI), excluding impairment losses, until the investment is derecognised or impaired.

d) Impairment of FVOCI
Following the requirements of the standard “IFRS 9-Financial Instruments”, impairment of FVOCI represents the impairment provision
for debt securities measured at FVOCI recognised in other comprehensive income.
The impairment of FVOCI at USD 44,415,974 (31 December 2022: USD 33,023,800) for the financial year 2023 is composed of