Page 151 - Annual Report 2022

89 Banka Kombëtare Tregtare Annual Report 2022

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

34. Contingencies and commitments
Guarantees and letters of credit

31 December 2022 31 December 2021
Guarantees in favour of customers 89,325,877 58,334,441
Guarantees received from credit institutions 48,245,325 9,507,118
Letters of credit issued to customers 2,166,373 6,908,425

Guarantees and letters of credit issued in favour of customers mostly are counter guaranteed by other financial institutions or
fully cash collateralised.
At present the Bank is operating 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 2022 31 December 2021
Undrawn credit commitments 164,784,323 150,795,791
Outstanding cheques of non-resident banks 315,525 335,009
Spot foreign currency contract 224,560,300 148,265,797
Collaterals for loan portfolio 3,861,262,871 2,419,027,674
Securities pledged as collateral (note 19) 343,225,900 320,678,295

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 2022.

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