PASHA BANK ENG 20

PASHA Yatırım Bankası A.Ş. Notes to Unconsolidated Financial Statements at 31 December 2020 (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) (Convenience Translation of Publicly Announced Financial Statements Originally Issued in Turkish, See Note I of Section Three) INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT(Continued) d.2) CR2 - Changes in stock of defaulted loans and debt securities Current period Prior Period 1 Beginning Balance 35,454 2,663 2 Additions 53 33,485 3 Receivables that are not re-default - - 4 Write-offs - - 5 Other changes 1 570 (694) Ending Balance (1+2-3-4±5 ) 36,077 35,454 1) Includes collection from the non-performing loans. d.3) CRB - Additional explanations on credit quality of assets Bank details calculate expected loss provisions within the scope of TFRS’9, as explained in the account policies and disclosures related to impairment of Financial assets and expected credit loss calculation. The Bank evaluates whether there is a significant increase in the credit risk of the Financial instrument within the scope of impairment since it was first included in the Financial statements. In making this assessment, it uses the change the expected default risk of the Financial instrument. Loans that have overdue above 90-day in delay in the relevant month are included in the follow-up accounts and are subject to specific provisions. Refinancing or restructuring; One or more loans extented by the Bank due to financial difficulties that the customer or group is expected to be present for future, is subject to a new loan that will cover the principal or interest payment completely or partially, or the conditions in exising loans are changed to ensure that the debt can be paid. The breakdown of assets by geographic, sector and time to maturity is provided on Section Four, Note II. Non-Performing loans and specific provision by geographic breakdown Current Period Prior Period NPL Specific Provision Write-offs NPL Specific Provision Write-offs Domestic 36,077 19,831 - 35,454 22,279 - European countries - - - - - - USA, Canada - - - - - - OECD countries - - - - - - Off-shore banking regions - - - - - - Other - - - - - - Total 36,077 19,831 - 35,454 22,279 - Annual Report 2020 PASHA Bank Year-End Financial Report 173