Page 145 - BKT Annual Report 2023 EN

ANNUAL REPORT 2023 76
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
(amounts in USD, unless otherwise stated)

35. CONTINGENCIES AND COMMITMENTS
Guarantees and letters of credit

31 December 2023 31 December 2022
Guarantees in favour of customers 93,129,123 89,325,877
Guarantees received from credit institutions 45,211,250 48,245,325

Letters of credit issued to customers 10,025,513 2,166,373

Guarantees and letters of credit issued in favour of customers mostly are counter guaranteed by other financial institutions or fully
cash collateralised.
The Bank operates as an agent of the Government in the administration and implementation of certain loans to state owned entities
utilising credit lines received from international donors. These donors have received individual guarantees from the Government of
Albania to cover the reimbursement of their lines of credit.

Other
31 December 2023 31 December 2022

Undrawn credit commitments 290,078,945 164,784,323
Outstanding cheques of non-resident banks 326,566 315,525
Spot foreign currency contract 128,493,054 224,560,300
Collaterals for loan portfolio 4,654,093,419 3,861,262,871
Securities pledged as collateral (note 19) 145,749,308 343,225,900

Interest Rate Swaps 103,994,039 -

Legal
In the normal course of business, the Bank is presented with legal claims and litigation; the Bank’s management is of the opinion that
no material losses will be incurred in relation to legal claims outstanding as at 31 December 2023.

36. SUBSEQUENT EVENTS

On February 13, 2024, Anagold Madencilik suspended the operations at the gold mine in Erzincan /Turkey as a result of a significant
slip on the heap leach pad. The mine license has been temporarily suspended by the Turkish Government. The Company is not, at this
time, able to estimate or predict when and under what conditions it will resume operations at Çöpler. The Bank has 1.5% participation
shareholding ratio in Anagold Madencilik company at around USD17 million. Anagold Madencilik is in the process of evaluating the
estimated remediation costs and anticipates recording a material remediation liability during 2024 year. The Bank will reflect the possible
financial losses resulting from such recognition during 2024.

This incident is a non-adjusting subsequent event and did not impact the Financial Statements as of and for the twelve months ended
December 31, 2023.

There are no other subsequent events that would require either adjustments or other additional disclosures in the financial statements.