PASHA_BANK_ANNUAL REPORT 2022

EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS (Continued) vi. Information on the collection policy of non-performing loans and other receivables and information on the write-off policy of the Bank Loans and other receivables in the nature of loss are collected through legal proceedings and the conversion of guarantees into cash through the court or the collections received based on the payment protocol made with the debtors. If there is still a remaining balance after the collection made through legal proceedings for the loans that have turned into losses, there is a policy of write-off from the Bank’s assets after the approval of the Bank’s Board of Directors on a transaction basis, by attaching it to a certificate of insolvency or a lack of pledge document. In addition, if the Bank’s receivables are insignificant amounts compared to the legal follow-up expenditures to be made for the supply of the aforementioned documents, the write-off from the assets can only be made with the decision of the Board of Directors. 6. Information on financial assets measured at amortized cost a. Information financial assets subject to repurchase agreements and given as collateral/blocked Current Period Prior Period LC FC LC FC Collateral/Blocked - - - 67,479 Repurchase transaction - 302,199 - 105,169 Total - 302,199 - 172,648 b. Information on government debt securities measured at amortized cost Current Period Prior Period Government bonds 324,054 189,860 Treasury bills - - Other public sector debt securities - - Total 324,054 189,860 c. Information on financial assets measured at amortized cost Current Period Prior Period Debt Securities 456,634 361,103 Quoted in a stock exchange 456,634 361,103 Not quoted - - Impairment provisions (-) (1) - - Total 456,634 361,103 (1) TL 8,922 (31 December 2021 - TL 4,224) expected credit losses included at line for expected credit losses on financial statements. d. The movement of financial assets measured at amortized cost during the year Current Period Prior Period Beginning balance 361,103 116,776 Foreign currency differences on monetary assets (1) 164,066 124,452 Purchases during year 211,638 119,875 Disposals through sales and redemptions (280,173) - Impairment provisions (-) - - Total 456,634 361,103 (1) TL (521) (31 December 2021 - TL 3,741) of differences arising from the rediscounts and accruals are shown in the “ Foreign currency differences on monetary assets line. 220 PASHA Bank 2022 Annual Report Notes to Unconsolidated Financial Statements at 31 December 2022 Pasha Yatırım Bankası A.Ş. (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) Convenience translation of publicly announced unconsolidated financial statements originally issued in turkish, see note I of section three