PASHA_BANK ANNUAL REPORT 2021

183 Annual Report 2021 PASHA Bank (Convenience Translation of Publicly Announced Financial Statements Originally Issued in Turkish, See Note I of Section Three) (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) PASHA Yatırım Bank A.Ş. Notes to Unconsolidated Financial Statements At 31 December 2021 INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT (Continued) Aging analysis of performing loans with overdue and non-performing loans Current Period Prior Period Up to 3 Months 661 538 3-12 Months 11,766 - 1-3 Years 34,058 36,077 3-5 Years - - Over 5 Year - - Total 46,485 36,615 Information on loans that have been restructured or rescheduled Current Period Prior Period Standard Loans that have been restructured or rescheduled - - Loans Under Close Monitoring that have been restructured or rescheduled 117,845 83,244 Non-performing loans that have been restructured or rescheduled 20,207 30,581 Total 138,052 113,825 d.4) Qualitative requirements to be disclosed regarding Credit risk mitigation techniques and CR3 - Explanations on Credit risk mitigation techniques In order to ensure timely and complete fulfilment of all obligations arising from the loan, it is essential to obtain appropriate collaterals. The main purpose of collateralization of any loan is to minimize the credit, foreign exchange and maturity risk. Within this scope, the minimum margin of guarantee is determined and the guarantees suitable for the loan types are obtained. There is collateral matching in the system for each loan. In addition, the appropriateness of the margin for each guarantee is also checked. The Bank discounts the collaterals by using some fixed ratios and calculates the expected cash equivalent of the collaterals in case they are transformed into cash. The difference between the credit and the cash equivalent of the collateral is defined as the net risk. In calculation of the net risk, the coefficients in the facility rating model are taken into account.