Independent Auditors’ report and Condensed Interim Financial Statements prepared in
accordance with International Financial Reporting Standards and the requirements of
the Financial and Capital Market Commission for the periods ended 30 June 2006
TABLE OF CONTENTS
2
I. THE BANK’S MANAGEMENT REPORT
Dear shareholders and clients!
JSC “BALTIC TRUST BANK” (further in the text - “the Bank” or “BTB”) is a universal commercial
credit institution, whose goal is to provide banking services to small and medium-sized companies and to
individuals or households. BTB has 110 thousand private individual clients and 10 thousand corporate
clients.
Following a new shares emission announcement in 2005, the Bank’s charter capital was increased by 7
million LVL with a share premium of 5.6 million LVL. A total of 140,000 voting shares were issued. The
nominal value of a share is 50 LVL and the share premium is 40 LVL. The capital increase provides a good
foundation to meet the Bank’s strategic goals – increase its market share of the domestic bank market,
including further development of lending to local clients.
In comparison to the end of last year, Bank’s net assets have increased by 11% (+26 million LVL). The
biggest rise took place in the loan portfolio, which grew by 24% (+21 million LVL). The Bank’s lending to
corporations increased by 12 million LVL and 9 million LVL to individual households. Public deposits
increased by 5% (+7 million LVL).
In the first half of the year, the Bank launched public offering of a subordinated bonds issue. The Bank is
the first credit institution in Latvia to issue public subordinated bonds. The total placed amount as of June
30th was 2.2 million LVL.
The Bank’s net profit for the first half of 2006 constituted 2.2 million LVL, which is 2 times larger than for
the first 6 months of 2005. The base of the profit growth was banking operations – lending and accounts
services. Net interest income increased by 26% and net fee and commission income grew by 39%. The
Bank’s net profit exceeded the plan by 37%. The Expenses to income ratio decreased to 55% (as compared
to 70% a year ago).
In May of 2006, JSC “BALTIC TRUST BANK” concluded an agreement to receive a syndicated loan of
16 million EUR (11 million LVL). The interest rate is Euribor + 1.10% and the loan period is 2 years,
which may be extended by the lenders for another 2 years. The lead arranger of the loan is Raiffeisen
Zentralbank Österreich AG, Austria. The main managers of the loan are Demir-Halk Bank (Netherlands)
N.V. and Hua Nan Commercial Bank, London Branch and its participants are Dresdner Bank; Banif- Banco
Internacional do Funchal, S.A.; The Export-Import Bank of the Republic of China; BRE Bank SA; HSH
Nordbank AG (Copenhagen branch); Hypo Alpe-Adria-Bank International AG and Raiffeisenlandesbank
Niederosterreich-Wien AG. This is the second syndicated loan received by the Bank. The first loan in the
amount of 10 EUR million was repaid in April. The Bank plans to use the syndicated loan to finance
medium and small enterprises. The Bank is the first credit institution in Latvia to receive a 2 years
syndicated loan from RZB.
Mortgage bonds issued by Bank are listed at Riga Stock Exchange. There are a total of 5 emissions, their
total volume is 11.5 mln. LVL.
In connection to the Group, at the 3rd of March 2006, Financial and Capital Markets Commission licenced
Investment Management Company “BTB Asset Management” to manage state funded pension scheme
assets (2nd level pensions). “BTB Active Plan” and “BTB Conservative Plan” were registered in June. 3
investment funds, established by “BTB Asset Management”, continue to operate. The funds aggregate
assets value was 1.6 million LVL.
Sincerely yours,
____________________
Oleg Boiko
Chairman of the Council
____________________
Edgars Dubra
Chairman of the Board
Riga, 4 August 2006
3
II. INFORMATION ON THE BANK’S MANAGEMENT
The Supervisory Council
Name
Position
Election date
Oleg Boiko
Chairman of the Council
19.12.2003.
Mikhail Parinov
Deputy Chairman of the
Council
01.12.2005.
Vadim Naumenko
Member of the Council
30.07.2004.
Andrey Desiatnikov
Member of the Council
27.04.2005.
Saveliy Semyonov
Member of the Council
27.08.1997.
Alexander Kravchenko
Member of the Council
26.04.2006.
Gunta Linde
Member of the Council
26.04.2006.
Igor Kim
Deputy Chairman of the
Council
01.12.2005.
26.04.2006.
John MC Naughton
Member of the Council
01.12.2005.
26.04.2006.
Resignation date
Resignation date
The Management Board
Name
Position
Election date
Edgars Dubra
Chairman of the Board
03.05.2001.
Kaspars Krauze
Member of the Board
27.02.2004.
Nikolay Levikov
Member of the Board
27.04.2005.
Andrejs Nilovs
Member of the Board
25.04.2006.
Ieva Racenaja
Member of the Board
15.03.2005.
4
III. STATEMENT OF MANAGEMENT RESPONSIBILITY
The management of JSC “Baltic Trust Bank” (“the Bank”) is responsible for the preparation of the
condensed interim financial statements and ensuring the fair presentation of the financial position as at the
period end, and the profit and loss and cash flows for the period then ended.
While preparing the condensed interim financial statements included on pages 7 to 16 for the periods ended
30 June 2006 and 2005 and the condensed balance sheet as of 30 June 2006 and 31 December 2005, the
management has applied appropriate accounting principles that are based on prudent and reasonable
judgments and estimates. Appropriate accounting principles have been consistently applied.
The Bank’s management is responsible for maintaining proper accounting records and ensuring the
compliance of these condensed interim financial statements with the regulations of the Financial and
Capital Market Commission and International Financial Reporting Standards. The management is
responsible for maintaining the measures necessary for safeguarding the Bank’s assets and for the
prevention and detention of fraud and other irregularities.
On behalf of the Bank’s Management:
____________________
Oleg Boiko
Chairman of the Council
____________________
Edgars Dubra
Chairman of the Board
Riga, 4 August 2006
5
INDEPENDENT AUDITORS’ REPORT
To the Shareholders of JSC “Baltic Trust Bank”
We have audited the accompanying condensed financial statements (page 7 to 16) of JSC “Baltic Trust
Bank” (the “Bank”) and its subsidiaries (“the Group”), which comprise the condensed balance sheet as of
30 June 2006 and the related condensed statements of profit and loss, changes in equity and cash flows for
the six-month period ended 30 June 2006, and a summary of significant accounting policies and other
explanatory notes. These condensed interim financial statements are the responsibility of the Bank’s
management. Our responsibility is to express an opinion on these condensed interim financial statements
based on our audit.
We conducted our audit in accordance with International Standards on Auditing issued by the International
Federation of Accountants. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the condensed interim financial statements referred to above present fairly, in all material
respects, the financial position of the Bank and the Group as of 30 June 2006 and the results of its
operations, changes in equity and its cash flows and for the six-month period ended 30 June 2006 in
accordance with the requirements of the Financial and Capital Market Commission of the Republic of
Latvia and International Financial Reporting Standards as adopted by the EU.
Deloitte Audits Latvia
Licence No. 43
Kenneth Taylor Hansen
Authorized representative
Riga, Latvia
4 August 2006
Silvija Gulbe
Sworn auditor
Certificate No. 142
1.00 EUR = 0.702804 LVL
(000’EUR)
V. CONDENSED BALANCE SHEET AND OFF – BALANCE SHEET ITEMS
Notes
ASSETS
Cash and demand deposits with central banks
2006
31
December
2005
31
December
2005
Bank
Group
Bank
30 June
30 June
2006
Group
26.996
26.996
27.133
27.133
Due from credit institutions and central banks
2
120.829
120.815
131.029
128.803
Loans and receivables
3
154.774
154.774
125.080
124.942
Held for trading financial assets
5.822
6.241
4.404
4.817
Fixed-income securities
3.701
2.302
3.320
2.718
300
2.130
1.071
2.086
1.821
1.809
13
13
21.198
21.198
6.773
6.773
21.000
21.000
5.861
5.861
198
198
912
912
8.308
8.308
11.878
11.878
10.152
10.152
-
-
-
273
-
8.335
1.431
1.427
1.898
1.592
9.272
9.272
9.112
9.099
1.062
1.060
1.688
821
1.498
1.498
2.676
674
361.342
362.014
321.671
324.867
Shares and other non-fixed income securities
Derivatives
Available-for-sale financial assets
Fixed-income securities
Shares and other non-fixed income securities
Held-to-maturity investments
Non-current assets held for sale
4
Investments in subsidiaries
Intangible assets
Fixed assets
Deferred expenses and accrued income
Other assets
Total assets
The accompanying condensed notes on the pages 14 to 16 are an integral part of the condensed financial statements.
____________________
Oleg Boiko
Chairman of the Council
____________________
Edgars Dubra
Chairman of the Board
Riga, 4 August 2006
7
1.00 EUR = 0.702804 LVL
(000’EUR)
30 June
30 June
2006
2006
31 December
2005
31 December
2005
Group
Bank
Group
Bank
LIABILITIES
Balances due to credit institutions
49.718
49.718
39.054
39.054
734
734
6
6
734
734
6
6
Financial liabilities at amortised cost
257.800
258.409
248.806
252.292
Deposits
238.668
238.953
225.335
228.579
16.170
16.317
16.357
16.599
2.962
3.139
7.114
7.114
2.443
2.442
2.277
2.271
885
885
583
583
Other liabilities
10.235
10.235
8.813
8.554
Total liabilities
321.815
322.423
299.539
302.760
Share capital
22.198
22.198
12.238
12.238
Share premium
10.347
10.347
2.379
2.379
1.699
1.699
1.699
1.699
378
378
378
378
-
-
(10)
-
Available for sale financial asset revaluation reserve
(677)
(677)
4
4
Accumulated profit from prior years
2.523
2.563
1.860
1.843
Profit for the current period
3.059
3.083
3.557
3.566
Minority interest
-
-
27
-
Total capital and reserves
39.527
39.591
22.132
22.107
361.342
362.014
321.671
324.867
Financial liabilities at fair value trough profit or loss
Derivatives
Debt securities
Subordinated liabilities
Deferred income and accrued expenses
Tax liabilities
Capital and reserves
Reserve capital and other reserves
Fixed asset revaluation reserve
Foreign currencies revaluation reserve
Total liabilities and shareholders’ equity
OFF-BALANCE SHEET ITEMS
Guarantees
7.580
7.580
7.279
7.279
Other commitments
7.379
7.379
7.178
7.178
The accompanying condensed notes on the pages 14 to 16 are an integral part of the condensed financial statements.
____________________
Oleg Boiko
Chairman of the Council
____________________
Edgars Dubra
Chairman of the Board
Riga, 4 August 2006
8
1.00 EUR = 0.702804 LVL
(000’EUR)
VI. CONDENSED STATEMENT OF PROFIT AND LOSS
6 months
ended 30
June 2006
6 months
ended 30
June 2006
6 months
ended 30
June 2005
6 months
ended 30
June 2005
Group
Bank
Group
Bank
Interest income
7.520
7.520
6.094
6.077
Interest expense
(3.014)
(3.017)
(2.496)
(2.504)
Net interest income
4.506
4.503
3.598
3.573
Fees and commission income
4.402
4.398
3.382
3.376
Fees and commission expenses
(666)
(679)
(703)
(700)
Net fee and commission income
3.736
3.719
2.679
2.676
Realised net profit from available-for-sale financial assets
423
423
-
-
Net profit from held for trading financial assets
236
239
(31)
(31)
1.624
1.629
1.382
1.387
23
23
1
1
489
489
713
652
Administrative expenses
(5.828)
(5.792)
(5.684)
(5.638)
Depreciation of fixed assets and intangible assets
Gain from foreign exchange
Dividends
Other operating income
(1.205)
(1.205)
(916)
(915)
Other operating expenses
(142)
(142)
(128)
(61)
Provisions for doubtful debts
(333)
(333)
(112)
(114)
155
155
109
109
Profit before corporate income tax
3.684
3.708
1.611
1.639
Income tax
(625)
(625)
(134)
(132)
Profit for the period
3.059
3.083
1.477
1.507
Basic and diluted earnings per share (LVL)
11.53
11.61
8.58
8.76
Release of provisions for doubtful debts
The accompanying condensed notes on the pages 14 to 16 are an integral part of the condensed financial statements.
____________________
Oleg Boiko
Chairman of the Council
____________________
Edgars Dubra
Chairman of the Board
Riga, 4 August 2006
9
1.00 EUR = 0.702804 LVL
(000’EUR)
VII. CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (THE BANK)
Share
capital
Share
premium
Revaluation
reserve
Reserve
capital and
other
reserves
Accumulated
profit / deficit
Total
12.238
2.379
378
1.699
1.842
18.536
-
-
-
-
1.507
1.507
30 June 2005
12.238
2.379
378
1.699
3.349
20.043
31 December 2005
Available for sale
financial assets
revaluation
reserve
12.238
2.379
383
1.699
5.408
22.107
-
-
(682)
-
-
(682)
9.960
7.968
-
-
-
17.928
Dividends
-
-
-
-
(2.845)
(2.845)
Profit for the
period
-
-
-
-
3.083
3.083
22.198
10.347
(299)
1.699
5.646
39.591
31 December 2004
Profit for the
period
Share emission *
30 June 2006
* Following a new shares emission announcement in 2005, the Bank’s charter capital was increased by 7 million LVL with a
share premium of 5.6 million LVL. A total of 140,000 voting shares were issued. The nominal value of a share is 50 LVL
and the share premium is 40 LVL.
The accompanying condensed notes on the pages 14 to 16 are an integral part of the condensed financial statements.
____________________
Oleg Boiko
Chairman of the Council
____________________
Edgars Dubra
Chairman of the Board
Riga, 4 August 2006
10
1.00 EUR = 0.702804 LVL
(000’EUR)
CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(THE GROUP)
Share
capital
31 December
2004
Minority interest
Share
premium
Revaluation
reserves
Reserve
capital and
other
reserves
Accumulated
profit /
(deficit)
12.238
2.379
378
1.699
1.860
-
18.554
-
-
-
-
-
27
27
1.477
-
1.477
Profit for the
period
30 June 2005
31 December
2005
Non-consolidation
of subsidiaries
Available for sale
financial assets
revaluation
reserve
Share emission *
Dividends
Profit for the
period
30 June 2006
Minority
interest
Total
12.238
2.379
378
1.699
3.337
27
20.058
12.238
2.379
373
1.699
5.417
27
22.133
-
-
10
-
(49)
(27)
(66)
-
-
(682)
-
-
-
(682)
9.960
7.968
-
-
-
-
17.928
-
-
-
-
(2.845)
-
(2.845)
-
-
-
-
3.059
-
3.059
22.198
10.347
(299)
1.699
5.582
-
39.527
* Following a new shares emission announcement in 2005, the Bank’s charter capital was increased by 7 million LVL with a
share premium of 5.6 million LVL. A total of 140,000 voting shares were issued. The nominal value of a share is 50 LVL
and the share premium is 40 LVL.
The accompanying condensed notes on the pages 14 to 16 are an integral part of the condensed financial statements.
____________________
Oleg Boiko
Chairman of the Council
____________________
Edgars Dubra
Chairman of the Board
Riga, 4 August 2006
11
1.00 EUR = 0.702804 LVL
(000’EUR)
VIII. CONDENSED STATEMENT OF CASH FLOWS
6 months
ended 30
June 2006
Cash flows from operations
Profit before taxes
Effect of non-consolidation of subsidiaries
Depreciation, amortization and write down of intangible and fixed assets
Increase of provision for doubtful debts
Loss/ (profit)from revaluation of foreign currencies
Increase in cash and cash equivalents before changes in assets and
liabilities
(Increase) in due from credit institutions
6 months
ended 30
June 2006
6 months
ended 30
June 2005
6 months
ended 30
June 2005
Group
Bank
Group
Bank
3.684
3.708
1.611
1.639
(39)
-
-
-
1.205
1.205
916
915
178
178
3
3
(1)
(7)
20
14
5.027
5.084
2.550
2.571
(2.740)
(2.726)
(1.659)
(1.659)
(Increase)/ decrease in loans and receivables
(29.742)
(29.880)
(7.980)
(7.974)
(Increase)/ decrease in available-for-sale financial assets
(15.107)
(15.107)
-
-
(Increase)/ decrease in held for trading financial assets
(1.419)
(1.424)
(3.274)
(3.763)
(Increase)/ decrease in non-current assets held for sale
(10.152)
(2.048)
-
-
600
(265)
(7)
(6)
(Increase) in prepaid expenses and accrued income
(Increase) in other assets
1.074
(928)
(36)
(43)
Increase/ (decrease) in due to credit institutions
10.001
10.001
11.714
11.714
Increase/ (decrease) in financial liabilities at fair value through profit or
loss
Increase in deposits
729
729
33
33
13.334
10.374
2.681
2.018
Increase/ (decrease) in deferred income and accrued expenses
166
171
216
213
Increase in other liabilities
1.382
1.641
2.361
2.348
Paid income tax
(283)
(283)
(112)
(111)
(27.130)
(24.661)
6.487
5.341
Cash from operating activities
12
1.00 EUR = 0.702804 LVL
(000’EUR)
6 months
ended 30
June 2005
6 months
ended 30
June 2006
6 months
ended 30
June 2006
Group
Bank
Group
Bank
(898)
(1.212)
(2.597)
(1.335)
-
(43)
-
(3.860)
3.570
3.570
3.452
3.452
2.672
2.315
855
(1.743)
17.928
17.928
-
-
2.962
3.138
-
-
(7.114)
(7.114)
-
-
(188)
(282)
3.739
3.981
(2.845)
(2.845)
-
-
(27)
-
27
-
10.716
10.825
3.766
3.981
Net increase in cash and cash equivalents
(13.742)
(11.521)
11.108
7.579
Opening balance of cash and cash equivalents
126.531
124.304
118.972
118.972
1
7
(20)
(14)
112.790
112.790
130.060
126.537
Cash flows from investing activities
Net purchases of fixed and intangible assets
Investments in subsidiaries (purchases)
(Increase)/ decrease in held-to-maturity investments
(Decrease) / increase in cash and cash equivalents as a
result of investing activities
6 months ended
30 June 2005
Cash flows from financial activities
Shares emission
Subordinated liabilities received
Subordinated liabilities (paid)
Fixed-income securities emission
Dividends
Minority interest
Increase in cash and cash equivalents as a result of
financial activities
Net profit from exchange rate differences
Closing balance of cash and cash equivalents
Cash and cash equivalents include the following:
30 June 2006
Cash and claims against the Bank of Latvia
30 June 2006
30 June 2005
30 June 2005
Group
Bank
Group
Bank
26.996
26.996
34.495
34.489
Due from credit institutions including term deposits due
in less than three months
114.691
114.691
107.116
103.599
Due to credit institutions including term deposits due in
less than three months
(28.897)
(28.897)
(11.551)
(11.551)
Total
112.790
112.790
130.060
126.537
The accompanying condensed notes on the pages 14 to 16 are an integral part of the condensed financial statements.
____________________
Oleg Boiko
Chairman of the Council
____________________
Edgars Dubra
Chairman of the Board
Riga, 4 August 2006
13
1.00 EUR = 0.702804 LVL
(000’EUR)
IX. CONDENSED NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
These condensed interim financial statements are prepared in accordance with IAS 34 Interim Financial Reporting. The
accounting policies used in the preparation of the condensed interim financial statements are consistent with those used in the
annual financial statements for the year ended 31 December 2005.
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards
(“IFRS”) as adopted by the European Union (the “EU”) and general practices within the banking industry. IFRS as adopted
by the EU do not currently differ from IFRS as issued by the International Accounting Standards Board (IASB), except for
portfolio hedge accounting under IAS 39, which has not been adopted by the EU. The Group has determined that portfolio
hedge accounting under IAS 39 would not impact the consolidated financial statements had it been adopted by the EU at the
balance sheet date.
Basis of Consolidation
The consolidated financial statements for the year ended 31 December 2005 incorporate the financial statements of
companies mentioned below:
Name of company
Country of
incorporation
Type of activity
Participation, %
IS “BTB Asset management”
Latvia
Financial services
Non-profit JSC “BTB Atklātais pensiju
fonds”
Latvia
Financial services
Non-profit JSC “Baltic Trust Bank
Atklātais pensiju fonds”
Latvia
“BTB Realty “
Latvia
Real estate operations
100
“BTB Real Estate”
Russia
Real estate operations
99
“BTB Investment”
Ukraine
Real estate operations
100
100
100
Financial services
100
The consolidated financial statements for the period ended 30 June 2006 incorporate the financial statements of companies
mentioned below (see Note 4):
Name of company
Country of
incorporation
Type of activity
IS “BTB Asset management”
Latvia
Financial services
Non-profit JSC “BTB Atklātais pensiju
fonds”
Latvia
Financial services
Non-profit JSC “Baltic Trust Bank
Atklātais pensiju fonds”
Latvia
Participation, %
100
100
Financial services
100
The consolidated balances consist of all subsidiary undertakings, which are those companies in which the Group directly or
indirectly has an interest of more than half of the voting rights or otherwise has power to exercise control over operations.
Control is achieved where the company has the power to govern the financial and operating policies of an investee enterprise
so as to obtain benefits from its activities. The subsidiaries are consolidated from the date on which effective control is
acquired by the Group and are no longer consolidated from the date of disposal.
All significant intercompany transactions and balances between Group enterprises are eliminated on consolidation.
On consolidation, the assets and liabilities of the Group’s foreign operations are translated at the exchange rates of Bank of
Latvia prevailing on the balance sheet date. Income and expenses are translated at the average exchange rates for the period.
These condensed interim financial statements should be read in conjunction with the 2005 annual financial statements.
Reclassification
14
1.00 EUR = 0.702804 LVL
(000’EUR)
The classification of certain amounts in the previous year’s financial statements have been changed to conform with the
current year presentation:
31 December 2005
(as previously reported)
Group
Bank
Reclassification
Group
Bank
31 December 2005
(as reclassified)
Group
Bank
ASSETS
Securities to be refinanced in
central banks
13.453
13.453
(13.453)
(13.453)
-
-
Fixed income securities
Shares and other non-fixed
income securities
Derivatives and foreign exchange
contracts
7.605
7.004
(7.605)
(7.004)
-
-
1.984
2,998
(1.984)
(2.998)
-
-
37
37
(37)
(37)
-
-
Other assets
2.652
650
24
24
2.676
674
Held for trading financial assets
-
-
4.404
4.817
4.404
4.817
Available-for-sale financial assets
-
-
6.773
6.773
6.773
6.773
Held-to-maturity investments
-
-
11.878
11.878
11.878
11.878
25.731
24.142
-
-
25.731
24.142
17
17
(17)
(17)
-
-
8.802
8.543
11
11
8.813
8.554
585
583
(585)
(583)
-
-
-
-
6
6
6
6
2.275
2.271
2
-
2.277
2.271
-
-
583
583
583
583
11.679
11.414
-
-
11.679
11.414
Total
LIABILITIES
Derivatives and foreign exchange
contracts
Other liabilities
Provisions for liabilities and
payments
Financial liabilities at fair value
trough profit or loss
Deferred income and accrued
expenses
Tax liabilities
Total
15
1.00 EUR = 0.702804 LVL
2.
(000’EUR)
DUE FROM CREDIT INSTITUTIONS
30 June
2006
30 June
2006
31 December
2005
31 December
2005
Group
Bank
Group
Bank
Demand
Credit institutions in OECD countries
52.722
52.722
74.499
74.499
2.461
2.461
9.980
9.368
Latvian credit institutions
23.936
23.936
411
411
Total
79.119
79.119
84.890
84.278
37.292
37.278
25.216
25.196
-
-
15.651
15.651
Credit institutions in the non-OECD
region
2.726
2.726
3.546
1.951
Credit institutions in OECD countries
1.692
1.692
1.726
1.726
41.710
41.696
46.139
44.524
120.829
120.815
131.029
128.802
Loans and receivables by term are comprised as follows:
30 June
2006
30 June
2006
31 December
Credit institutions in the non-OECD
region
Term
Latvian credit institutions
Bank of Latvia
Total
Total demand and term
3. LOANS AND RECEIVABLES
2005
31 December
2005
Private companies
81.226
81.226
66.306
66.190
Loans to private individuals
56.626
56.626
42.818
42.796
State companies and municipalities
18.052
18.052
17.553
17.553
Total loans and receivables
155.904
155.904
126.677
126.539
Provisions for doubtful debts
(1.130)
(1.130)
(1.597)
(1.597)
154.774
154.774
125.080
124.942
Net value of loans and receivables
4. NON-CURRENT ASSETS HELD FOR SALE
In June 2006 the management of the Group decided to sale the following subsidiaries: “BTB Realty” (Latvia), “BTB Real
Estate” (Russia) and “BTB Investment” (Ukraine). As at the moment of signing these financial statements sale agreements of
subsidiaries were in the process of their agreeing with client. Based on this fact the subsidiaries mentioned above are
presented under non-current assets held for sale as of 30 June 2006 and their balances and financial performance for the
period ended 30 June 2006 is not consolidated.
* * * * *
16