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) EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS (Continued) v. Information on interest accruals, rediscounts, valuation differences and their provisions calculated for non- performing loans in accordance with TFRS 9 III. Group IV. Group V. Group Loans with limited collectability Loans with doubtful collectability Uncollectible loans Current period (Net) - - 82 Interest accruals and rediscounts and valuation differences - - 1,519 Provision (-) - - (1,437) Prior Period (Net) - 92 - Interest accruals and rediscounts and valuation differences - 1,498 - Provision (-) - (1,406) - vi. Information on the collection policy of non-performing loans and other receivables and information on the write- off policy of the Bank Non-performing loans and other receivables are collected through legal follow-up and liquidation of collaterals. Credits that have become losses in nature, are attached to the certificate of insolvency or insufficient collateral document, and written off from the Bank’s assets. However, if the Bank’s receivable is an insignificant amount compared to the costs and expenses to be incurred for the preparation of said documents, writing off of assets may be performed if the Board of Directors decides so. 6. Information on financial assets measured at amortized cost a. Information financial assets subject to repurchase agreements and given as collateral/blocked 31 December 2020 31 December 2019 LC FC LC FC Collateral / Blocked - 22,323 - 2,987 Repurchase transaction - 27,016 - 8,110 Total - 49,339 - 11,097 b. Information on government debt securities measured at amortized cost 31 December 2020 31 December 2019 Government bonds 45,092 29,918 Treasury bills - - Other public sector debt securities - - Total 45,092 29,918 c. Information on financial assets measured at amortized cost 31 December 2020 31 December 2019 Debt Securities 116,776 79,975 Quoted in a stock exchange 116,776 79,975 Not quoted - - Impairment provisions (-) (1) - - Total 116,776 79,975 (1) TL 1,755 (31 December 2019 - TL 666) expected credit losses included at line for expected credit losses on financial statements. 200 Annual Report 2020 PASHA Bank Year-End Financial Report