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) 5. Securities Issued 31 December 2020 31 December 2019 LC FC LC FC Nominal - 644,983 7,900 466,819 Cost - 644,983 7,748 466,819 Book Value - 647,016 7,815 468,149 The Bank netted TL 912 (31 December 2019 - TL 17,766) nominal amount of debt securities that bought backed on its financial statements. 6. Information on other liabilities As of 31 December 2020, other liabilities amount to TL 65,700 (31 December 2019 - TL 17,615) and do not exceed 10% of total balance sheet. 7. Information on financial lease agreements 31 December 2020 31 December 2019 Gross Net Gross Net Up to 1 Year 93 67 88 71 1 - 4 Years 129 111 97 68 Over 4 Years - - 8 8 Total 222 178 193 147 8. Information on hedging derivative financial liabilities None (31 December 2019 - None). 9. Information on provisions a. Information on provisions related with foreign currency difference of foreign indexed loans None (31 December 2019 - None). b. Information on specific provisions for non-cash loans that are non-funded and non-transformed into cash As of 31 December 2020, the Bank has no specific provision (31 December 2019 - None) and TL 9,539 (31 December 2019 - TL 7,387) provision for expected credit loss to the financial statements. Expected Credit Loss for Non-Cash Loans 31 December 2020 31 December 2019 12 Months Expected Credit Loss 1,744 1,591 Significant Increase in Credit Risk 7,795 5,796 Total 9,539 7,387 c. Information on other provisions i. Information on provisions for possible risks None (31 December 2019 - None). ii. Other provisions are explained if they exceed 10% of the total provision balance Other provisions amount of TL 7,250 (31 December 2019 - TL 2,450) is comprising of provisions for bonuses and ongoing lawsuits. iii. Obligations related to employee rights In accordance with Turkish Labour Law, the reserve has been calculated by estimating the present value of the future probable obligation of the Bank arising from the retirement of its employees. 206 Annual Report 2020 PASHA Bank Year-End Financial Report