Page 140 - Annual Report 2022

Banka Kombëtare Tregtare Annual Report 2022 78

Banka Kombëtare Tregtare Sh.a.
Notes to the Consolidated Financial Statements for the year ended
31 December 2022 (Amounts in USD, unless otherwise stated)

15. Right of use asset & Lease Liability (continued)
The recognised right-of-use assets relate to the following types of assets:

31 December 2022 31 December 2021
Buildings 14,838,905 17,683,050
IT Equipment - -
Total 14,838,905 17,683,050
The depreciation expenses of right-of-use assets are amounting at USD 2,499,191 for the financial year 2022 (USD 2,778,513
for the financial year 2021).
The lease liabilities are secured by the related underlying assets. Future minimum lease payments are presented as follows:

31 December 2022 Up to 1 month 1-3 months 3-12 months 1-5 years Over 5 years Total
Lease payments 220,594 438,753 1,842,725 7,056,584 7,955,673 17,514,329
Finance charges (28,527) (55,784) (230,692) (259,216) (2,490,172) (3,064,391)
Net present values 192,067 382,969 1,612,033 6,797,368 5,465,501 14,449,938

31 December 2021 Up to 1 month 1-3 months 3-12 months 1-5 years Over 5 years Total
Lease payments 244,107 487,802 2,153,088 8,503,747 9,191,645 20,580,389
Finance charges (35,020) (68,715) (287,312) (600,910) (1,863,558) (2,855,515)
Net present values 209,087 419,087 1,865,776 7,902,837 7,328,087 17,724,874

16. Other assets
Other assets as at 31 December 2022 and 31 December 2021 are as follows:

31 December 2022 31 December 2021
Assets acquired through legal process, net 35,378,395 33,959,288
Payments in transit 8,780,826 12,413,891
Prepaid expenses 5,356,397 3,585,334
Inventory 3,483,456 601,731
Administration costs receivable from borrowers 1,462,315 1,835,208
Foreign exchange contracts revaluation gain 1,125,118 -
Advances to suppliers 442,151 2,989
Other debtors, net 648,413 7,083,908
56,677,071 59,482,349

Assets acquired through legal process represent the repossessed collaterals of some unrecoverable loans, the ownership of
which was taken on behalf of the Bank. Repossessed collateral represents real estate assets acquired by the Bank in settlement
of overdue loans. The Bank expects to dispose of the assets in the foreseeable future. The Bank has established an Asset Sale
Committee, responsible for the disposal of these assets.