savings deposit insurance fund annual report

Transcription

SAVINGS DEPOSIT
INSURANCE FUND
2008
AN N U AL
REPORT
SAVINGS DEPOSIT
INSURANCE FUND
2008
AN N U AL
REPORT
March 2009
According to Article 124 of the Banking Law No. 5411, Annual Activity Report concerning
the activities of Savings Deposit Insurance Fund includes assessment and comparison of
performance objectives of the Fund and the actual results. Annual accounts of the Fund are
audited by an independent audit company and independent audit report is incorporated
into the annual activity report and published.
Fund informs the public every three months through reports published concerning the
lawsuits, receivables, prosecutions, collection, re-structuring and other activities and gives
information to the Plans and Budget Committee of the Turkish Grand National Assembly
about its activities once a year.
SAVINGS DEPOSIT INSURANCE FUND
BÜYÜKDERE CAD. NO: 143 ESENTEPE/ISTANBUL - TURKEY
CONTACT INFO: FINANCE DEPARTMENT
PHONE: +90 (212) 340 22 00, FACSIMILE: +90 (212) 340 18 12
www.tmsf.org.tr
MARCH 2009
ISSN: 1308-9463
CONTENTS
MESSAGE FROM THE CHAIRMAN………………………………….…………………… 4
I-
ABOUT THE FUND...................................................................................... 7
1.
DUTIES AND ACTIVITIES OF THE FUND.............................................. 9
1.1. Duties………………. ………………………………............………................... 9
1.2. Activities ………………………............…...…………………………………….... 10
2. ORGANIZATIONAL STRUCTURE OF THE FUND..................................... 10
2.1. The Fund Board …………………………………………………………………... 10
2.2. Organizational Structure ………………………………………………………... 11
3. STRATEGIC GOALS AND OBJECTIVES OF THE FUND........................... 14
3.1. SDIF Corporate Performance Management System............. ………....... 14
3.2. Corporate Scorecard for 2008........................................................ ..... 16
II-
PERFORMANCE OBJECTIVES AND ACTIVITIES OF THE FUND IN 2008......19
1. DEPOSIT INSURANCE ACTIVITIES........................................................ 21
1.1.
1.2.
1.3.
1.4.
1.5.
1.6.
Development of Insured Deposits and Participation Funds……………. 22
Regulations Regarding Deposit Insurance........................................... 24
Insurance Premium Revenues.............................................................26
Other Revenues Regarding Deposit Insurance.................................... 27
Budget Expenses of the Fund ………………………………………............. 28
Deposit Insurance Reserve Management ……………………………......... 29
2. RESOLUTION ACTIVITIES.................................................................... 31
2.1.
2.2.
2.3.
2.4.
2.5.
2.6.
Banks whose Operating Permissions have been Revoked.......…......... 33
Banks Transferred to the Fund …………............................................ 36
Recovery Activities ………………………………………….......................... 36
Lawsuits of which the Fund is Litigator ………………...............……….. 46
Debt Payments to the Undersecretariat of Treasury …………………..... 49
Payments to Institutions and Corporations ….................................... 51
3. OTHER ACTIVITIES.............................................................................. 52
3.1. International Activities.................................................. .................... 52
3.2 Media and Public Relations ……………….……………......……................ 53
3.3. Relations with Other Institutions............................................ ........... 54
III-
INDEPENDENT AUDITORS’ REPORT AND FINANCIAL STATEMENTS.......... 55
1. INDEPENDENT AUDITOR’S REPORT FOR THE PERIOD
1 JANUARY - 31 DECEMBER 2008........................................................ 58
2. SAVINGS DEPOSIT INSURANCE FUND BALANCE SHEET....................... 60
3. SAVINGS DEPOSIT INSURANCE FUND INCOME STATEMENT................ 62
4. IMPORTANT DEVELOPMENTS REGARDING THE FINANCIAL
ACCOUNTS OF THE FUND………………………………………………………….. 63
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Annual Report- 2008
TABLES
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
1:
2:
3:
4:
5:
6:
7:
8:
Distribution of Fund personnel according to their titles as of December 31, 2008
Financial objectives and realizations for deposit insurance activities in 2008
Number of total and insured depositors
Premium categories and premium rates
Insurance premium revenues for the year 2008
The distribution of budget appropriations and expenditures for the year 2008
Financial objectives and realizations for resolution activities in 2008
Banks whose operating permissions have been revoked and for whom bankruptcy decrees were
issued
9: Amounts paid to the Fund by the bankruptcy estate and remaining receivables of the Fund
10: Payments regarding the amounts collected as DGB by Imar Bankası
11: Distribution of revenues from resolution activities
12: Collections from Fund receivables under follow-up in 2008
13: Bank majority shareholders with whom protocols were signed
14: Other bank majority shareholders
15: Commercial and economic integrity sales in 2008
16: Subsidiaries taken over in 2008
17: Status of subsidiaries transferred to the Fund as of December 31, 2008
18: Subsidiaries sold in 2008
19: Subsidiaries under liquidation/bankruptcy
20: Lawsuits regarding majority shareholders/managers of the banks
21: Execution proceedings regarding majority shareholders/managers of the banks
22: Lawsuits not related with loans
23: Execution proceedings not related with loans
24: Repayments made by the Fund to the Undersecretariat of Treasury in 2008 before
debt cancellation
25 : Repayments made by the Fund to the Undersecretariat of Treasury in 2008 after
debt cancellation
CHARTS
Chart 1:
Chart 2:
Chart
Chart
Chart
Chart
Chart
Chart
Chart
Chart
3:
4:
5:
6:
7:
8:
9:
10:
Chart
Chart
Chart
Chart
Chart
11:
12:
13:
14:
15:
Distribution of Fund personnel according to education status as of December 31, 2008
The ratio of the deposit insurance fund reserve to total and insured deposits and participation
funds
Total and insured deposits and participation funds
Distribution of total deposits and number of depositors by segment
Distribution of total participation funds and number of account holders by segment
Distribution of insurance premiums by periods
Insurance premiums collected per year
Prescribed assets by years
Deposit amounts and risk rates in years
The foreign currency distribution in insured deposit and participation funds and the Fund’s
reserve
Revenues from resolution activities by years
Status of real estates taken over by the Fund as of December 31, 2008
Distribution of news published in media regarding the Fund
Distribution of news by their impact
Applications for information under Law No. 4982
FIGURES
Figure
Figure
Figure
Figure
Figure
Figure
1:
2:
3:
4:
5:
6:
Activities of the Fund
Organizational chart of the Fund
SDIF Strategy Map 2008- 2010
2008 Corporate scorecard
Bank resolution process
Banks whose shareholder rights except dividends have been transferred to the Fund
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Annual Report- 2008
ABBREVIATIONS
Savings Deposit Insurance Fund
SDIF- Fund
Banking Regulation and Supervision Agency
BRSA
Central Bank of the Republic of Turkey
CBRT
Egebank A.Ş.
Egebank
Yurt Ticaret ve Kredi Bankası A.Ş.
Yurtbank
Türkiye Tütüncüler Bankası Yaşarbank A.Ş.
Yaşarbank
Bank Kapital T.A.Ş. Bank
Kapital
Ulusalbank T.A.Ş.
Ulusalbank
Interbank A.Ş.
Interbank
Eskişehir Bankası T.A.Ş.
Esbank
İktisat Bankası T.A.Ş.
İktisat Bankası
Kentbank A.Ş.
Kentbank
Ege Giyim Sanayicileri Bankası A.Ş.
EGS Bank
Etibank A.Ş.
Etibank
Toprakbank A.Ş.
Toprakbank
Bank Ekspres A.Ş.
Bank Ekspres
Demirbank T.A.Ş.
Demirbank
Sümerbank A.Ş.
Sümerbank
Sitebank A.Ş.
Sitebank
Milli Aydın Bankası T.A.Ş.
Tarişbank
Türk Ticaret Bankası A.Ş.
Türkbank
Kıbrıs Kredi Bankası Ltd.
Kıbrıs Kredi Bankası
Türkiye İmar Bankası T.A.Ş.
İmar Bankası
Bayındırbank A.Ş.
Bayındırbank
Pamukbank T.A.Ş.
Pamukbank
Financial Restructuring Agreement
FRA
Bankrupt Türkiye Turizm Yatırım ve Dış Ticaret Bankası A.Ş.
TYT Bank
Bankrupt Marmara Bankası A.Ş.
Marmara Bank
Bankrupt Türkiye İthalat ve İhracat Bankası A.Ş.
Impexbank
Birleşik Fon Bankası A.Ş.
Birleşik Fon Bankası
Domestic Government Bonds
DGB
International Association of Deposit Insurers
IADI
European Forum of Deposit Insurers
EFDI
Repayment Agreement
Protocol
Financial Crimes Investigation Board
MASAK
New Turkish Lira
YTL -NTL
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Annual Report- 2008
MESSAGE FROM THE CHAIRMAN
With our commitment to continuous
development and excellence, our vision for
the period between 2008 and 2010 is “To be
an active and leading corporation in
promoting international financial stability
through
a
strategy-oriented
dynamic
management approach.” With this vision,
and our intention to raise the level of our
accomplishments, we have adopted the
Balance Score Card System, which is a new
“corporate
performance
management”
model. We have set the basic goals for this
model as confidence and stability, effective
risk management, readiness, efficiency and
better cooperation.
The ongoing financial integration
process in the international markets has
raised the financial contagion risks, the risk
of spreading of a financial problem in a
country or company to another. The
phenomenon of globalization, which favored
certain countries until recently, caused the
financial crisis to spread like a wild fire and
made it harder to manage. The global
financial crisis has shown us that the
derivative financial instruments, which were
developed for risk management purposes,
were mostly used for speculative intentions.
Also,
supervision
and
regulation
in this area were insufficient. Enhancement
of cooperation and information flow among members of the financial safety net in all countries
seems inevitable in the formation of new approaches for restructuring the financial system and
maintaining its smooth operation.
International Association of Deposit Insurers (IADI), --in whose governing body SDIF is
also represented-- and the Basel Committee on Banking Supervision concluded the process
which began last year for "Core Principles for Effective Deposit Insurance Systems" and
reached an agreement. In most part, SDIF is in accordance with these core principles that are
arranging the responsibilities and powers of deposit insurance organizations, issues related with
membership of credit institutions, the scope of insured deposits, resolution function of deposit
insurance organizations, and fast payout to depositors.
Additionally, a new risk based insurance premiums tariff which constitutes one of the
core principles of deposit insurance and serves its strategic goals, has developed as one of the
most advanced models among country practices. In this model, the number of risk factors which
was previously 5, has been increased to 14 enabling an important level of differentiation in
premiums to be paid by banks according to the level of risk associated with them. So, it is
targeted to accumulate a sufficient deposit insurance reserve that gives confidence to depositors
and bankers, to encourage banks for the better risk management, and reduce moral hazard that
may arise from deposit insurance.
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Annual Report- 2008
Financial statements of SDIF, which have a major importance in maintaining confidence
and stability and which are considered among SDIF’s strategic goals, have been restored into a
plain, understandable and manageable structure following the write-off of SDIF's debt to the
Treasury Undersecretariat with the legal arrangement in 2008.
Deposit insurance organizations have undertaken important responsibilities in
overcoming the problems related with banking systems of countries in the globe that are going
through financial crisis. For example, the U.S. Federal Deposit Insurance Corporation (FDIC) is
playing important roles in resolution of the current crisis, just like it did in the 90's and 30's.
Deposit insurance organizations of countries like Japan, South Korea, Brazil and Mexico, which
had experienced systemic crisis in the past, have also assumed important roles. SDIF, in the
light of its past experiences and with the intention of contributing to financial stability,
continues to work towards realizing its strategic goals.
Ahmet ERTÜRK
5
Annual Report- 2008
6
Annual Report- 2008
I- ABOUT THE FUND
7
Annual Report- 2008
8
Annual Report- 2008
1. DUTIES AND ACTIVITIES OF THE FUND
Savings Deposit Insurance Fund has been established as a legal entity, in accordance
with the Decree Law No. 70 of the Banking Law that came into force on July 22, 1983 in order
to insure the savings deposit in the banks and the Central Bank of the Republic of Turkey was
empowered with its administration and representation. The duty of administration and
representation of the Fund was later transferred to the Banking Regulation and Supervision
Agency as of August 31, 2000 within the framework of Banks Act No. 4389.
With the amendment of Banks Act No. 4389, by the Act No. 5020 dated December 26,
2003, the Fund Board was designated as the decision-making body of the Fund and the
Chairman of the Fund Board was given the authority to execute the general administration and
representation of the Fund and thus the Fund acquired an autonomous status. Under the
Banking Law No. 5411 dated November 1, 2005, the Fund remained an administratively and
financially autonomous, public legal entity and it has been granted the right to determine the
policies regarding deposit insurance.
According to the Article 111 of the Banking Law, the Fund is independent in execution of
its duties. Decisions of the Fund shall not be supervised for appropriateness. No organ,
authority or person may issue orders or instructions to influence the decisions of the Board.
Headquarter of the Fund is in Istanbul. Upon a Council of Ministers Decree, the Fund
may establish a maximum of three representative’s offices and collection units in the provinces
where activities that are in the Fund's area of duty and authority, are concentrated. In this
respect, the Fund has a representative office in Ankara.
1.1. Duties
The duties of the Fund have been redefined in the Banking Law. According to the Article
111 of the said Law, the duties of the Fund are as follows:
• Insuring deposits and participation funds in order to protect the rights and interests of
depositors within the framework of the powers given by this Law and other applicable
legislation,
• Managing the Fund banks, strengthening and restructuring their financial standing,
transferring, merging, selling or liquidating such banks,
• Carrying out and concluding the follow-up and collection procedures for the Fund's
receivables,
• Managing the Fund’s assets and resources,
• Performing other duties assigned by the Law.
These duties also define SDIF's mission.
SDIF’S
MISSION
In order to contribute to confidence and stability of the financial system,
SDIF;
- insures deposits and participation funds,
- resolves banks and assets transferred to it in the most efficient way
-
9
Annual Report- 2008
1.2.
Activities
Deposit insurance and resolution activities constitute the Fund's main area of operation.
Within the framework of its deposit insurance operation, the Fund determines policies for
deposit insurance and makes necessary arrangements, takes measures and manages the risks
arising from deposit insurance, monitors the risks related with banking sector and the banks
and runs procedures for the collection of insurance premiums, mentioned in the Article 130 of
the Banking Law.
As part of its resolution operations, besides exerting efforts to resolve banks whose
licenses of operation were revoked and whose control was transferred to it, the Fund works to
create an early warning system for banks that are likely to fall into the same position. The Fund
also works to accomplish the resolution processes of the said banks with optimum cost and
within an optimum time and recover the SDIF funds that have been transferred to these banks.
Resolution
Deposit
Insurance
Revocation
of operating
license
Risk
Monitoring
Recovery
PreAnalysis
Management of
Insurance
Policies
Transfer to
the Fund
Figure 1: Activities of the Fund
2.
ORGANIZATIONAL STRUCTURE OF THE FUND
2.1. The Fund Board
The Board is the decision making body of the Fund and is made up of seven members
including the Chairman and the Vice Chairman. The Chairman of the Fund Board is also the
Fund's president. Members of the Board are appointed by the Council of Ministers from amongst
candidates with a graduate degree and a minimum of 10-year professional experience or who
have held an academic position in the areas of law, economics, finance, banking, business
administration, public administration or equivalent disciplines for at least ten years. At least one
of the members must be a graduate of the law faculty and one of the members must have held
the position of a vice president, a main service department manager or have worked as a
professional staff in the Fund.
The Chairman and the Fund Board members are elected for six years. The members
whose terms of office expire can not be appointed for another term. The Fund Board convenes
whenever necessary, but at least once a week with the attendance of a minimum of five
members. The Fund Board takes its decisions with the votes of a minimum of four members in
the same direction, with the exception of specific resolutions that require special quorum under
the Banking Law.
Working principles and procedures of the Fund Board have been laid down with the
“Regulation Regarding the Working Principles and Procedures of the Savings Deposit Insurance
Fund Board” that has entered into force after being published in No. 26036 issue of the Official
Gazette dated December 27, 2005.
10
Annual Report- 2008
In 2008, the Fund Board has taken 396 decisions, majority of which were concerning the
resolution operations of the Fund.
2.2. Organizational Structure
The Fund is composed of a chairman, 2 vice presidents, 10 departments, 4 directorates
and 15 advisors to the chairman.
As of December 31 2008, number of personnel whose salaries are paid from the Fund
budget is 411. Furthermore, there are 114 temporary personnel working at the departments of
the Fund who are employed by the Fund banks and the institutions under the control of the
Fund.
The distribution of Fund personnel according to their title as of December 31, 2008 is
shown in Table 1.
Distribution of Fund Personnel According to Their Titles
Status
Number of
personnel
2
Title
Vice President
Head of Department
The Permanent Staff with
Contract
Personnel with
Administrative Contract
9
Advisors to Chairman
Director
Group Coordinator
Fund Lawyer
Fund Auditor
Fund Specialist
Fund Assistant Auditor
Fund Assistant Specialist
Doctor
Administrative Personnel
Support Service Personnel
6
4
18
104
16
123
5
42
1
60
21
Total
411
Table 1: Distribution of Fund personnel according to their title as of December 31, 2008
81.75 % of the Fund personnel have an undergraduate degree or a higher level of
education. The distribution of the personnel according to their educational background is shown
in Chart 1.
Educational Background of the Fund Personnel
350
308
300
250
200
150
100
54
0
25
12
50
High School
Undergraduate
9
3
Graduate
Master
PhD
Other
Chart 1: Distribution of Fund personnel according to education status as of December 31, 2008
11
Annual Report- 2008
The Fund sends its employees abroad to improve their professional knowledge, to provide
them with training in their fields, and opportunities for study and research. In this respect, to
help determine the personnel to be sent abroad, "Savings Deposit Insurance Fund Procedures
and Principles for Sending Personnel Abroad for Training, Study and Research" was adopted.
In 2008, 2 personnel were sent to the U.S. and two others were sent to U.K. for Graduate
studies, inline with the said procedures and principles.
12
Annual Report- 2008
FUND BOARD
CHAIRMAN
Advisors to
Chairman
Vice President
Strategy
Development
Department
Audit
Department
Vice President
Collection
Department
Finance
Department
Insurance and
Risk
Monitoring
Department
Support
Services
Department
Legal Affairs
Department
Asset
Management
Department
Liquidation
Department
Subsidiaries
and Real
Estate
Department
Figure 2: Organizational chart of the Fund
13
Annual Report- 2008
3.
STRATEGIC GOALS AND OBJECTIVES OF THE FUND
3.1. SDIF Corporate Performance Management System
Following the completion of the Institutional Development Plan for the years 2005-2007,
a new Corporate Performance Management System was implemented in the next plan for the
term between 2008 and 2010. As a result of through study and assessment, SDIF began the
implementation of the Balanced Scorecard, a corporate scorecard, which is an internationally
accepted system allowing users to dynamically monitor, assess, report and take action.
As an extension of the Fund's Corporate Performance Management System, SDIF Project
Management Office was founded and SDIF Project Management Methodology was determined, in
order to enable the sound management of the projects which make up the majority of the
performance indicators.
In line with the selected methodology, SDIF Project Management Organization was
founded and 13 projects, each of which serves realization of a different strategic goal, were
successfully accomplished and implemented. In 2009, the Fund aims at implementing 22 more
projects serving its strategic goals.
SDIF has defined its new vision as "To be an active and leading corporation in promoting
international financial stability through a strategy-oriented dynamic management approach".
Setting out with this new vision defined with the Corporate Scorecard approach, the Fund's
strategic thrusts and goals for the term 2008-2010 were determined, SDIF Strategy Map was
created, and the Corporate Scorecard for 2008 was prepared. Scorecards for each unit were
formed in the first quarter of 2008, and assessment of unit and corporate scorecards began.
Strategic goals for the term 2008 to 2010 was determined within the framework of
strategic thrusts of the Fund as; confidence and stability, effective risk management, readiness,
efficiency and cooperation. SDIF Strategy Map can be seen in Figure 3.
SDIF’S
VISSION
To be an active and leading corporation in promoting
international financial stability through a
strategy-oriented dynamic management approach.
14
Annual Report- 2008
OUR VISION
“To be an active and leading corporation in promoting international financial stability through a strategyoriented dynamic management approach”.
Confidence and
Stability
1. Stakeholders
2. Financial
3. Operational
Excellence
4. Learning and
Growth
Effective Risk
Management
Effective Public
Awareness
Readiness
Efficiency
Contribution to the
Stability of the Financial
System
Cooperation
Effective
Resolution Processes
Optimization of Deposit
Insurance Revenue
Sound
Financial
Structure
Maximization of
Resolution Revenue
Effective Risk
Minimization
Effective Use of
Technology
Effective
Operational Processes
Operational
Readiness
Sound
Risk Management
Practices
Competent
Workforce
Sound Information
Security System
Promotion of Strategic
Management
Approach
Figure 3: SDIF Strategy Map 2008 - 2010
15
Annual Report - 2008
3.2.
Corporate Scorecard for 2008
SDIF Corporate Scorecard is based on four perspectives, namely stakeholders, financial,
operational excellence, learning and growth, and 14 strategic goals under these perspectives.
Also, performance indicators were determined towards realization of the strategic goals.
Scorecards for units were also created with the same systematic. Unique performance
indicators were determined for each department towards realization of the Fund’s strategic
goals. Scorecard results are being monitored dynamically. The scores were examined together
with scorecard holders and results were evaluated, twice past year.
First assessment for the corporate activity was done in the second quarter of 2008 and
the second assessment was done during the “2nd Strategy Summit” held on November 8-9 2008.
As well as assessment of the 2008 realizations, some planning for the year 2009 was
made during the summit. In line with these plans, works for preparing the corporate and unit
scorecards have begun.
The Fund’s performance for 2008 has been on the anticipated level. The Corporate
Scorecard for 2008 can be seen in Figure 4 below:
16
TMSF CORPORATE SCORECARD
(01.01.2008- 31.12.2008)
Stakeholders
Strategic Objectives
P1. Effective Public Awareness
P2. Contribution to the Stability of the Financial System
P3. Effective Resolution Processes
Financial
F1. Optimization of Deposit Insurance Revenue
F2. Maximization of Resolution Revenue
F3. Sound Financial Structure
F4. Effective Risk Minimization
Operational
Excellence
S1. Sound Risk Management Practices
S2. Operational Readiness
S3. Effective Use of Technology
Employees &
Development
S4. Effective Operational Processes
C1. Promotion of Strategic Management Approach
C2. Competent Workforce
C3. Sound Information Security System
Evaluation
Chart
Very good
Good
Poor
Figure 4: 2008 Corporate Scorecard
17
18
II- PERFORMANCE
OBJECTIVES AND
ACTIVITIES OF
THE FUND IN 2008
19
20
1.
DEPOSIT INSURANCE ACTIVITIES
The Fund aims at determining deposit insurance policies in line with the international
practices, monitoring risks associated with banks and the sector and forming and maintaining
an efficient deposit insurance system by creating public awareness.
In order to fulfill its deposit insurance function, the Fund has been making effective
contributions to the activities of Coordination Committee and Financial Sector Commission,
which were founded under the Banking Law, with the aim of creating a firm platform for sharing
of information and cooperation with other institutions and organizations and continuously
developing these platforms.
Following the deposit insurance operations carried out within 2008, the Fund had aimed
to increase its reserves which amounted to USD 3,272 million in 2007, up to USD 3,868 million
by the end of 2008. Targets for TL were achieved but due to the rapid rise in foreign currency
exchange rates the total reserves reached USD 3,456 million, and were realized below the USD
targets. The ratio of this reserve to the total amount of insured deposits and participation funds,
which is approximately YTL 129 billion, is 4.24% as of December 31, 2008. This ratio is an
important indicator for the Fund’s goals of “effective public awareness” and “contribution to the
stability of the financial system” which were mentioned under the “stakeholders” and “financial”
perspectives in the Corporate Scorecard. Ratio of the Fund’s total deposit insurance activity
reserve to the total and insured savings deposit and to the participation funds in years is shown
in Chart 2.
%5,00
%4,50
%4,00
%3,50
%3,00
%2,50
%2,00
%1,50
%1,00
%0,50
%0,00
The Ratio of Fund's Deposit Insurance Reserve to Total and
Insured Deposits and Participation Funds
%4,24
%3,45
%3,08
%2,68
%0,89
%1,08
%0,99
%1,20
2005
2006
2007
2008
Deposit Insurance Reserve/Insured Deposits and Participation Funds
Deposit Insurance Reserve/Total Deposits and Participation Funds
Chart 2: The ratio of the Fund’s deposit insurance reserves to total and insured deposits
and participation funds in years.
In 2008, the Fund has generated a USD 587 million of operational income, USD 538
million of which came from premium revenues, and a USD 292 million of financial income.
Budget expenses and other deposit insurance expenses of the Fund in 2008 have been USD 56
million.
The Fund targets to obtain an operational income of USD 490 million, to generate a
financial income of USD 396 million and to spend USD 31 million on its budget and other
deposit insurance expenses in 2009. Within this framework, the Fund targets to increase the
deposit insurance reserve up to USD 4,134 million, by the end of 2009.
21
Financial Objectives and Realizations
for Deposit Insurance Activities In 2008 (USD in millions)*
The Year 2008
Performance
Objective
Reserve
(beginning of term)
Deposit Insurance
Revenues **
Financial Income
(Interest, etc.)
Budget Expenses and
Other Deposit Insurance
Expenses
The Amount transferred
to Resolution Activities
Evaluation Differences
Reserve (end of term)
Realization
Rate
Realization
Cumulative
as of Dec.
31, 2008
The Year
2009
Realization
Performance
Objective
3,272
3,272
-
-
3,456
540
587
% 109
6,677
490
270
292
% 108
2,669
396
-38
-56
% 147
-224
-31
-
-
-
-4,227
-176
-639
% 363
-1.439
-177
3,868
3,456
% 89
3,456
4,134
Table 2: Financial objectives and realizations for deposit insurance activities in 2008
* Figures in the table are calculated based on transactions in cash and in DGB of the Fund and exchange
rates on day of transaction apply.
** Deposit insurance revenues consist of insurance premiums, income from prescribed assets, fines etc.
1.1.
Development of Insured Deposits and Participation Funds
There are 32 deposit banks and 4 participation banks operating in the banking sector as
of 2008. Deposit and participation fund amount in these credit institutions has increased by
27% during the year and reached YTL 455 billion in total. Amounts covered by insurance also
have increased by 15% and reached YTL 129 billion, as a result, 28.3% of total deposit and
participation funds are under insurance coverage.
Total and Insured Deposits and Participation Funds
YTL in billions
500
450
400
350
300
250
200
150
100
50
0
455
357
308
252
159
45
2003
197
68
2004
112
98
83
2005
2006
2007
129
2008
Insured Deposits and Participation Funds
Total Deposits and Participation Funds
Chart 3: Total and insured deposits and participation funds.
Note: The buying exchange rates of CBRT at the end of periods apply in calculation of YTL equivalence of
insured deposits and participation funds. Participation fund amounts before 2005 are not included in the
amounts within the scope of insurance.
22
As of 2008, there are 68.2 million real and legal persons who have deposit and
participation fund accounts at credit institutions. Deposits of 92.4% of these account holders
(63 million) are insured.
Total Depositors
(net)
(in thousands)
Deposit Banks
Participation
Banks
Total
Depositors covered with
insurance (net)
(in thousands)
66,810
61,926
1,408
1,117
68,218
63,043
Table 3: Number of total and insured depositors
Note: Deposit and participation fund holders that have accounts in more
than one bank are accounted individually for each bank.
Moreover, as of 2008, 98.5% of the depositors have an account balance between the
ranges YTL 0 – 50,000 in deposit banks. The total balance of accounts in the said range
constitutes 20.9% of the total deposits. Deposits in the range between YTL 50,001 – 1,000,000,
belonging to approximately 984,000 depositors, constitute 36.3% of the total deposits. Deposit
accounts with a balance above YTL 1,000,000 belonging to approximately 27,000 depositors,
constitute 42.8% of the total deposits.
Distribution of Total Deposits and
Number of Depositors by Segment
%94,8
%100
%90
%80
%70
%60
%50
%40
%30
%20 %6,2
%10
%0
%42,8
%21,6
%14,7
%14,7
%3,7
0-10.000
10.001YTL
50.000 YTL
%1,3
50.001250.000
YTL
%0,2
%0,0
250.001- >1.000.000
1.000.000
YTL
YTL
Percentage in Total Deposit
Percentage in Total Number of Depositors
Chart 4: Distribution of total deposits and number of depositors by segment.
As of 2008, 96.6% of the account holders have participation funds between the ranges
YTL 0 – 50,000 in participation banks. The amount of accounts in the mentioned range
constitutes 32.1% of the total participation fund. Funds in the range between YTL 50,001 1,000,000 owned by 3.3% of the account holders which constitutes 41% of the total
participation funds. Share of participation fund accounts above YTL 1,000,000 belonging to
approximately one thousand account holders, is 26.9%.
23
Distribution of Total Participation Fund Accounts and
Number of Account Holders by Segment
%85,1
%90
%80
%70
%60
%50
%40
%20
%26,9
%25,6
%22,9
%30
%15,4
%11,5
%9,2
%2,9
%10
%0,4
%0,1
%0
0-10.000 YTL
10.001-50.000
YTL
50.001-250.000
YTL
250.0011.000.000 YTL
>1.000.000 YTL
Percentage in Total Participation Fund Accounts
Percentage in Total Number of Account Holders
Chart 5: Distribution of total participation fund accounts and number of account holders by segment
1.2. Regulations Regarding Deposit Insurance
Under the regulation published by BRSA, titled “Regulation on Savings Deposit Subject to
Insurance and Premiums to be collected by the Insurance Fund”, the practice of differentiation
of premium rates to be paid by credit institutions according to five risk factors -- namely; capital
adequacy ratio (CAR), FX net position ratio, Ratio of loans granted to a risk group to the
equities of a bank belonging to that group, ratio of non-performing loans, and free equity
capitals— have begun in January 1, 2003.
However, the authority to determine the insurance premium tariff, premium collection
dates, the methods and other aspects was taken from the Banking Regulation and Supervision
Board and handed over to the Fund Board with the Banking Law No. 5411. In this respect, the
“Regulation on Deposits and Participation Funds Subject to Insurance and Premiums to be
collected by Savings Deposit Insurance Fund” has been accepted by the Fund Board and took
effect after it was published in the Official Gazette No. 26339 dated November 07, 2006. The
Fund did not make any changes in the insurance premium tariff within the scope of this
regulation, and decided to continue implementing the risk factors used in determination of the
additional premium rates for credit institutions which has been in effect since January 1, 2003,
the thresholds for these factors, and the foreseen additional premium rates.
The current premium tariff --which has enabled a considerable portion of the credit
institutions to pay premiums different from the basic premium rate since the time it took effect
on March 2003—has gradually lost its efficiency in differentiating premium rates according to
risk factors associated with credit institutions. According to the said premium tariff, many credit
institutions clustered together within a specific interval and they pay premiums based on the
basic premium rate. As a matter of fact, as of December 2007 all credit institutions except one,
has been paying premiums at the basic premium rate. In this respect, the Fund assessed that
the current premium tariff was not efficient enough in differentiating the credit institutions
according to the level of risk associated with them, and decided that it would be appropriate to
change it.
The risk based insurance premium tariff, which was enacted with the Banking Law, in
order to enforce the credit institutions to pay premiums according to the risk they cause in the
banking system and encourage them to take lower risks and be in harmony with more cautious
regulations, also do exist in the banking practices of developed countries.
The risk based premium tariff carries the following qualities;
•
is effective in grouping banks into relevant risk categories
24
•
meets the fund needs of the deposit insurance system through the premium rates applied
to risk categories and encourages Banks towards a stronger risk management
•
its premium categories have an encouraging effect on the risk profiles of the banks and are
structured according to relevant distinctions and rules and criteria for risk based
premium system are clear and transparent for the banks
•
risk based premium tariffs are accepted by the safety net players and the banking sector.
In studies for changing the premium tariff: examples in other countries were examined,
and efforts were exerted towards creation of an applicable tariff model compatible with the
structure of Turkish banking sector. In this respect, initially the risk factors to be used in the
insurance premium tariffs and their risk weights were determined and the threshold values of
these risk factors were analyzed. When determining the risk factors and their weights in efforts
for creating a structure suitable for Turkey, both the factors used in the current tariff, and
factors used in practices of other countries and their weights were considered. Also, gradual
changes in the values of the factors, chosen for determining the threshold values of risk factors,
and distribution of the recent values assumed by these factors and their distribution according
to the size of the credit institutions were also examined.
As a result of these efforts, a tariff model which evaluates the credit institutions
according to their risk factors, and aims at differentiating the premium rates to be paid by them,
was created. For the implementation of the new tariff, a new amendment on the “Regulation on
Deposits and Participation Funds Subject to Insurance and Premiums to be collected by Savings
Deposit Insurance Fund” was prepared and published on May 5, 2008 in the issue No.26867 of
the Official Gazette.
In order to allow, the Fund and the credit institutions, a reasonable time of preparation
for transition to the new practice, the Fund Board decided to put the new amendment in force
on January 1, 2009. The Fund also decided that the premiums to be the collected under the
new tariff, be based on financial tables created as of March 31, 2009.
According to the new amendment of the “Regulation on Deposits and Participation Funds
Subject to Insurance and Premiums to be collected by Savings Deposit Insurance Fund,” the
credit institutions will get a total score between “0” (zero) and “100” (a hundred), according to
the risk factors and their weighted grades mentioned in the “Risk Categories and Grade
Summaries Table”, and an evaluation based on the said risk factors and their threshold values.
Based on their scores, the credit institutions will fall into one of the four premium categories
shown in the “Premium Categories and Premium Rates” table below.
Total Grade
Premium Category
Premium Rate
(basis points)
≥ 85
A
11
≥70 and < 85
B
13
≥ 50 and < 70
C
15
< 50
D
19
Table 4: Premium categories and premium rates
Based on their total grades, credit institutions will pay premiums at rates in one of the
premium categories in Table 4. These rates are as follows:
1. 11 basis points for credit institutions in premium category “A”
2. 13 basis points for credit institutions that fall in premium category “B”
3. 15 basis points for credit institutions that fall in premium category “C”
4. 19 basis points for credit institutions that fall in premium category “D”
25
On the other hand, the first paragraph of the second temporary article of the Law on
“Saving of Certain Assets to the National Economy” published in the issue No.27062 of the
Official Gazette on November 22, 2008, was arranged as follows:
“The authority to set the scope and amount of the savings deposit and the participation funds
owned by real persons, to be subject to insurance, which was handed to the SDIF Board with
the third paragraph of Article 63 of the Banking Law No. 5411, will be used by the Council of
Ministers for the two years following the date the said law takes effect. In the mean time, besides
the savings deposit and the participation funds owned by real persons, the Council of Ministers
is also authorized to set the scope and/or amount for other deposits and participation funds to
be subject to insurance, as well as the criteria for deposits and participation funds to be
excluded from insurance coverage.”
1.3.
Insurance Premium Revenues
In 2008, the total amount of insurance premiums collected from insured deposits and
participation funds was YTL 482 million, USD 78,6 million and EUR 52.7 million.
Bank Group
Currency
Deposit Banks
Participation Banks
Total
Grand Total
(in YTL)
Insurance Premium
Amount
YTL
455,722,322
USD
73,172,416
EUR
49,531,938
YTL
26,311,716
USD
5,471,262
EUR
3,190,992
YTL
482,034,038
USD
78,643,678
EUR
52,722,930
YTL
676,069,345
Table 5: Insurance premium revenues for the year 2008
Note: The CBRT FX buying rates at the end of related premium term
apply in calculations of YTL equivalents.
YTL in millions
200
180
160
140
120
100
80
60
40
20
0
Distribution of Insurance Premiums by Periods
161
169
171
176
138
132
139
143
Dec.07
Mar.08
Jun.08
Sep.08
in YTL
USD in millions
200
180
160
140
120
100
80
60
40
20
0
in USD
Chart 6: Distribution of insurance premiums by periods
Note: The CBRT FX buying rates at the end of related premium term apply in calculations of USD
equivalents.
26
When the Fund’s insurance premium collections after 2000 are analyzed, it is seen that
insurance premium collections have declined in US dollar terms. The main reason for this
decline is that the main premium rate was lowered from 25 basis points to 12.5 basis points
in 2003. Another reason for this is the regulation that took effect in September 2004. With
this regulation, although the basic premium rate was raised to 15 basis points, the premium
basis was changed from total savings deposit to insured deposits which caused a decline in
the total premium collection earnings. The rise in premium revenues since 2006 was for the
most part due to the increase in premium base.
Insurance Premiums Collected per Year (USD in millions)
700
600
550
519
500
552
502
400
432
359
348
2003
2004
306
337
300
200
100
0
2000
2001
2002
2005
2006
2007
2008
Chart 7: Insurance premiums collected per year
1.4. Other Revenues Regarding Deposit Insurance
In addition to insurance premiums, the Fund has other income items stated in Article
130 of Banking Law such as revenues from prescribed assets, revenues from entrance fees for
the banking system, revenues from share transfer fees of banks, judicial and administrative
fines and other income items.
1.4.1. Prescribed Assets
Article 62 of the Banking Law, stipulates that the deposits, participation funds, bailed
goods and receivables at banks that have not been claimed by their owners within ten years
following the latest request, transaction and written directive of their owners, shall be subject to
prescription. If the banks cannot access to their customers about the deposits, participation
funds, bailed goods and claims that barred prescription, then these are recorded as revenue to
the Fund, following an announcement. In accordance with the “Regulation on Principles and
Procedures Regarding Admission and Withdrawal of Deposits and Participation Funds, and
Prescribed Deposits, Participation Funds, Bailed Goods and Receivables”; the banks publish the
lists regarding the prescribed assets in their web sites and at the same time send it to the Fund.
Furthermore, these lists are consolidated and published in the web site of the Fund
st
th
(www.tmsf.org.tr) between 1 of February and 30 of April every year.
In 2008, total revenues of the Fund from assets that were barred by prescription has been
YTL 16.9 million.
27
Number of Accounts (in
thousands)
300
250
30,0
27,9
293
25,0
200
20,0
199
150
10,5
100
16,9
160
6,9
123
50
15,0
10,0
5,0
0
0,0
2005
Total Revenue (YTL in millions)
Prescribed Assets by Years
2006
2007
2008
Number of Accounts
Total Revenue
Chart 8: Prescribed assets by years
1.4.2. Fines
According to the article No. 130 of Banking Law, 50% of the judicial fines and 90% of the
administrative fines given due to violations of the provisions of the said law are registered as
income to the Fund.
Within the framework of these provisions, in year 2008, the Fund has collected a total of
YTL 3.4 million as administrative fines and YTL 340,000 of the collected fines was transferred to
the Ministry of Finance.
1.4.3. Fees from Transfer of Bank Shares
According to the Article No. 18 of the Banking Law, during the transfer of bank shares
subject to permission of BRSA, a transfer fee valued at 1% of the nominal value of the bank’s
transferred shares shall be paid to the Fund by the transferee. Within this scope, the Fund has
collected a fee amounting to YTL 12.9 million in 2008.
1.5. Budget Expenses of the Fund
In accordance with the Regulation on Organization of SDIF, the expenditure budget for
the year 2008 was prepared and put into practice by the Decision of the Fund Board. The
principles of appropriation and utilization regarding employment of personnel, sale, purchase
and rental of vehicles, equipment, material and real estate and purchase of every service
necessary for the Fund’s operations, have been defined by the expenditure budget.
Disciplining SDIF’s expenditures made during the execution its duties and authorities
stemming from the Banking Law, ensuring efficient use of resources and making consistent
decisions for the future, necessitates monitoring of the income and expenditure of the Fund
under a budget discipline. Therefore, in preparation of the “SDIF Expenditure Budget for 2008”,
retrenchment concerns were taken into consideration, and special care was shown to create a
structure that enables the conduct of services without any delay. The spending foreseen in the
Expenditure Budget for 2008 was covered with the Fund’s revenues from the deposit insurance
activities.
The total appropriation foreseen in the 2008 Expenditure Budget was YTL 54.6 million
while the total annual expenditure in 2008 amounted to YTL 43.8 million, with YTL 27.4 million
spent on personnel expenses and YTL 10.3 million on purchase of goods and services. The
distribution of budget appropriations and expenditures for the year 2008 are shown in Table 6.
28
The Distribution of Budget Appropriations and Expenditures for 2008 (YTL)
Total
Appropriation for
2008
Topic of
Appropriation
Personnel Expenses
Realization as of
Dec. 31, 2008
Realization
Rate
30,390,000
27,390,958
% 90.13
4,280,000
1,383,939
% 32.34
14,180,000
10,317,016
% 72.76
Current Transfers
3,050,000
2,914,078
% 95.54
Capital Expenses
2,700,000
1,770,127
% 65.56
54,600,000
43,776,118
% 80.18
Expenses on Social
Security Government
Premiums
Expenses on
Purchase of Service
and Goods
Total
Table 6: The distribution of budget appropriations and expenditures for the year 2008
1.6. Deposit Insurance Reserve Management
Deposits, participation funds and Domestic Government Bonds are the financial
instruments used in the management of reserves that the Fund maintains under the task of
insuring deposit and participation funds. Procedures and principles regarding management of
the Fund’s reserve has been revised, in order to increase the efficiency of the interactive
procedures between the Funds operational units, with the developments in domestic and foreign
markets taken into consideration.
The Fund has a deposit insurance reserve of YTL 5,465 million as of December 31, 2008.
YTL 1,991 million of the said amount is invested in DGBs, while YTL 3,474 million of it is
deposited in bank accounts. The amount of reserves reached YTL 5,465 million in 2008,
marking a 42% rise from 2007’s YTL 3,843 milion. Financial income (interest, dividends,
exchange rate differences) accounted for YTL 841 million of the rise in reserve, while savings
deposit insurance revenues accounted for YTL 781 milion of it.
Deposit Insurance reserve, is exposed to risks related with credit, exchange rate and
interest as well as operational risks, as is the case with all financial institutions.
The said reserve may be exposed to credit risks, as a portion of it is kept as deposit in
bank accounts. While the deposit at bank accounts was increased from YTL 3,194 millions to
YTL 3,474 million, its share in the Fund’s portfolio was reduced from 83% down to 64%. The
total amounts of savings deposited in banks in years and their ratios to the total reserves are
shown in Chart 9.
YTL in Deposit Amounts and Credit Risk Rates in Years
millions
4.000
3.500
%100
%100
%83
3.000
%64
2.500
2.000
1.500
1.000
500
2.227
3.034
3.194
3.474
2005
2006
2007
2008
0
Deposit Amount
%100
%90
%80
%70
%60
%50
%40
%30
%20
%10
%0
Deposit/ Total Reserve
Chart 9: Deposit amounts and credit risk rates in years.
29
Of the total amount of insured savings deposit and insurance funds, 75% is in YTL, 12%
is in USD and 13% is in EUR. It is believed that the parallelism between this and the
distribution of the foreign currencies in the Deposit Insurance Reserve reduces the exchange
rate risk. In order to reduce the mentioned risk, the Fund aims to keep the ratio between the
foreign currency distribution of insured deposit and insurance reserve, at a certain level.
However, due to the excessive fluctuations in the markets and the continuous changes in the
parity in 2008, the Fund adopted an inactive approach. The foreign money distribution in the
Deposit Insurance Reserve has been as follows: 67% in YTL, 18% in USD and 15% in EUR. The
ratio of the insured deposit and participation funds in foreign currencies to the total of insured
deposits and participation funds, which expresses the Fund reserve’s currency risks in years, is
shown below in Chart 10.
The Foreign Currency Distribution in Insured Deposits and
Participation Funds and the Fund's Reserve
%60
%50
%49
%45
%40
%30
%30
%36
%34
%30
%20
%33
%25
%10
%0
2005
2006
2007
2008
Fund's Foreign Currency Reserve/ Total Reserve
Insured Foreign Currency Deposit/ Total Insured Deposit
Chart 10: The foreign currency distribution in insured deposits and participation funds and the
Fund’s reserve.
The average maturity date for the Deposit Insurance Reserve in 2008 have been 137
days. The maturity date for YTL, USD and EUR reserves has respectively been; 180, 55 and 42.
The average maturity average in 2007 had been 126 days.
In 2008, in order to prevent operational risks, the Fund began implementing Tender
Management System, Portfolio Management System, and Payment Management System.
With the Tender Management System, the Fund aimed at carrying out the Tenders for
the sale of deposit, foreign currency and DGBs to Banks, in an electronic environment,
transferring data simultaneously and storing it in a safe environment. The implementation of
this system in an integrated manner with the Portfolio Management System, prevented material
mistakes, increased efficiency of the personnel and the risk threshold measurement for Banks.
The deposit tenders in this scope were held via the Tender Management System.
With the Portfolio Management System, the transfer of transactional data regarding Fund
bank accounts, through a secure electronic system to be developed, was targeted. Works have
been completed except for the Performance evaluation component. Benefits of this system to the
Fund have been; automatic decomposition of deposit insurance and resolution reserves, and
integration of this system with the Tender Management System. With the Payment Management
System, the Fund aimed at making the payment orders and transferring them to credit
institutions in an electronic environment, enabling a more efficient cash management through
payment requests.
30
2.
RESOLUTION ACTIVITIES
Under the Article No. 71 of the Banking Law, Banking Regulation and Supervision Board
may decide to revoke the operating permission of an insolvent bank or the Board may transfer
management and supervision of the bank to the Fund along with its shareholder rights except
dividends.
When a Bank's operating permission is revoked, the management and supervision of
that bank is transferred to the Fund, and consecutively the Fund pays the insured deposit and
the insured participation fund and requests the bankruptcy of the bank directly on behalf of the
depositors and participation fund holders. Credit institutions whose operating permissions have
been revoked are liquidated according to provisions of the Banking Law, where as Investment
and Development Banks are liquidated according to general provisions. In the case of a
bankruptcy decision, the Fund participates in the bankruptcy estate as privileged creditor and
liquidates the bank, with duties and powers of the bankruptcy office, creditors meeting and
bankruptcy authority.
Another method of resolution used when dealing with troubled banks, is the transfer of
the credit institution’s management and supervision to the Fund along with its shareholder
rights except dividends, for the purposes of transferring, selling or merging the said credit
institutions partially or completely, provided that the loss is deducted from the capital of the
existing shareholders. In cases where the Fund holds the entire or majority shares of a bank
transferred to itself, it may restructure the bank or strengthen its financial structure through
measures like increasing the capital, purchasing real estates, subsidiaries and other assets or
making deposits at the bank.
Decision of BRSA
Revocation of operating
permission of the bank
Payment of insured
deposits/participation
funds
Transfer of shareholder rights
except dividends of the bank
to the Fund
Transfer of
assets/insured
deposits
Taking over
of bank’s
shares
Request the
BRSA to revoke
the operation
permission
Issuing of Bankruptcy
Decree for the Bank
Liquidation
Process
Transfer of shares,
assets, liabilities or
merger with another
bank
Rehabilitation of
bank’s financial
structure
Sale
Transfer
Merger
Figure 5: Bank resolution process
As result of the problems in the banking sector which began in 1994 and the crisis which
took place in 1998 and the following years, operating permissions of five banks were revoked
and bankruptcy decrees were issued for these banks. Also shareholder rights except dividends
31
and management and supervision of 20 other banks were transferred to the Fund. The Fund is
still carrying out works for liquidation, resolution or recovery of these banks.
On the other hand, under the Article 107 of the Banking Law, the credit institutions,
whose shareholder rights except dividends and management and supervision were transferred to
the Fund, shall be resolved by the Fund within maximum 9 months. This period may be
extended for a maximum of three months upon the decision of the Fund Board.
The Fund has analyzed the resolution methods employed by its foreign counterparts and
the globally credited resolution principles of the International Association of Deposit Insurers
(IADI) and has been carrying out projects for development of new resolution methods, in the
light of its experiences.
Aside from efforts for improving the resolutory processes, the Fund is actively continuing
its works towards liquidation, resolution and recovery of the banks transferred to the Fund, or
banks for which bankruptcy decrees were issued following revocation of their operation
permissions. In 2008, within the scope of these works, the Fund obtained USD 2,289 million of
resolution revenues, and USD 44 million of financial income from the management of the
reserve as a result of the resolutory activities.
In 2008, the Fund made a payment of USD 1,480 million to the Undersecretariat of
Treasury, and USD 367 million to other institutions and corporations. Due to the economic
conjuncture, the resolutory revenues in 2008, were only 80% of the projected target. Therefore,
the Fund’s payments to the Undersecretariat of Treasury in this year also amounted to the 80%
of the projected target. Also payments made to other institutions and corporations amounted to
43% of the projected target because USD 600 million of collections which are subject to ongoing
legal procedures are in blocked accounts and resolution costs were higher then the expected
level. Data on the mentioned activities can be seen in Table 7.
Financial Objectives and Realizations for
Resolution Activities in 2008 (USD in millions)*
The Year 2008
Performance
Objective
Resolution Reserve
(beginning of term)
Realization
Realization
Rate
Cumulative
as of Dec.
31, 2008
The Year
2009
Realization
Performance
Objective
419
419
-
2,868
2,289
% 80
17,315
374
Borrowing
-
-
-
27,206
-
The Amount transferred from
Deposit Insurance Activities
-
-
-
4,227
-
50
44
% 88
779
24
-121
-117
% 97
-30,143
-96
-1,861
-1,480
% 80
-9,284
-233
-
-
-
-1,418
-
-846
-367
% 43
-6,658
-440
-46
-51
% 111
-1,287
-15
463
737
% 159
737
351
Resolution Revenues **
Financial Income (Interest etc.)
Resolution Expenses
Debt repayments to the
Treasury
Repayments to CBRT for
Advances
Payments to other
institutions/corporations
Evaluation differences
Resolution Reserve
(at the end of term) ***
737
Table 7: Financial objectives and realizations for resolution activities in 2008
*
Figures in the table are calculated based on transactions in cash and in DGB of the Fund and exchange
rates on day of transaction apply
** In calculation of resolution revenues, gross amounts collected are taken into consideration. The
refundments from collections, payment etc. are not deducted from the amounts but were rather shown
under expenses
*** USD 600 million of the amount is kept under blocked accounts as the resolution processes continue.
32
2.1. Banks whose Operating Permissions have been Revoked
There are five banks in the banking system whose permission to make banking
transactions and accept deposits has been revoked as of 1994. Information about these banks is
given under Table 8.
Banks whose Operating Permissions have been Revoked and
for whom Bankruptcy Decrees were issued
Name of
the Bank
Date of
Revocation of
Operating
Permission
Date of
Bankruptcy
Decision
Marmara
Bank
20.04.1994
05.06.1995
TYT Bank
11.04.1994
02.02.1996
Impexbank
23.04.1994
22.10.1996
Kıbrıs Kredi
Bankası
27.09.2000
23.08.2004
İmar Bank
03.07.2003
08.06.2005
Current Status
Out of 1,453 receivables recorded in the bankruptcy
estate amounting to YTL 16.3 million, YTL 15.6
million has been paid along with 75% of the legal
interest (YTL 29.4 million). Proceedings for payment
of remaining principle and interest continue.
Out of 937 receivables recorded in bankruptcy estate
amounting to YTL 23 million, YTL 12.9 million has
been paid.
Out of 2,754 receivables recorded in bankruptcy
estate amounting to YTL 40.3 million, YTL 40 million
of principal, and YTL 20.2 million of legal interest of
has been paid.
Out of 11 receivables recorded in bankruptcy estate
amounting to YTL 382,000, 9 were approved and an
amount of YTL 210,000 has been repaid to the Fund.
2009 projection for amount of repayments to the
Fund is YTL 25,000
In First and Second Level Schedule for Creditors,
Fund’s receivables amount to YTL 12.9 billion, Tax
Administrations’ receivables amount to YTL 5,5
billion, Receivables of Undersecretariat of Treasury
amount to YTL 928 million. An amount of YTL 1.2
million in total was paid to 170 people at the First
Level Schedule for Creditors.
Table 8: Banks whose operating permissions have been revoked and for whom bankruptcy decrees were
issued
* Fund’s receivables consist of the total deposits paid by the Fund, deposits barred by prescription and
insurance premium differences, and the total amount of interests until the bankruptcy date.
2.1.1. Payments made by Bankruptcy Estates to the Fund
Payments made by the Fund regarding the banks whose operating permission has been
cancelled and the amounts paid to the Fund by the bankruptcy estates of these banks and the
remaining receivable amounts are shown in Table 9.
Amounts paid to the Fund by Bankruptcy Estate and Remaining Fund Receivables
(As of December 31, 2008) (YTL)
Interest paid to
Amount paid to
Remaining
Name of the
Amount Paid by the
the Fund by
the Fund by
Fund
Bank
Fund
Bankruptcy
Bankruptcy Estate
Receivable
Estates
Marmara Bank
5,604,313
5,428,920
5,366,064
175,393
TYT Bank
10,264,099
2,608,199
-
7,655,900
Impexbank
Kıbrıs Kredi
Bankası
Imar Bank
18,743,273
18,743,273
16,954,521
-
352,002
209,685
-
142,316
8,627,298,990*
142,657,644**
-
8,484,641,346
Total
8,662,262,677
169,647,721
22,320,585
8,492,614,955
Table 9: Amounts paid to the Fund by bankruptcy estate and remaining receivables of the Fund
* Income tax paid is included and the amount shows the total resource transferred by the Fund.
** The said amount is: charges of mortgage and pledge of assets, deducted from Fund receivables
33
2.1.2. Repayment of Amounts Collected as DGB by Imar Bankası
Law No. 5667, regarding the repayment of amounts collected under the name “the sale of
Domestic Government Bonds in the secondary market” by Imar Bankası even though there had
been no DGBs in exchange within the bank, has taken effect by being issued in the Official
Gazette No. 26537 dated May 30, 2007. Moreover, Council of Ministers Decree No. 2007/12398
dated July 13, 2007, which was taken in the framework of Law No. 5667, came into effect on
July 21, 2007 by being published in the Official Gazette No. 26589. In the framework of this Law
and the Council of Ministers Decree, the Fund has been assigned with the repayment of the said
amounts to the individuals who had purchased DGBs from Imar Bankasi.
There are 26,140 transactions in 22,095 accounts belonging to 22,517 investors at the
bank and these transactions amount to YTL 728 million in total. In case all the titleholders
make claims, the maximum amount (principle + interest) to be paid in the framework of 6th
paragraph of Article 4 of Council of Ministers Decree No. 2007/12398 of is YTL 970 million.
As a result of procedures carried out by the SDIF, the claims of titleholders have been
evaluated, required preparations have been completed and the repayments regarding the
amounts collected under the name of DGB by Imar Bankası has begun on October 8, 2007.
Information regarding the repayments made as of December 31, 2008 is shown in Table 10.
Payments Regarding the Amounts Collected as DGB by Imar Bankası
(as of December 31, 2008) (YTL)
Interest
Amount of
Amount of
Amount
Payment
Income Tax
Transaction
(net)
(principle+interest)
Total
Outgoing
Resource
As of
December 31,
2007
599,207,532
168,790,771
767,998,303
29,786,595
797,784,898
Year 2008
103,741,315
29,222,890
132,964,205
5,156,983
138,121,188
702,948,847
198,013,661
900,962,508
34,943,578
935,906,086
Cumulative
Total as of
December
31, 2008
Table 10: Payments regarding the amounts collected as DGB by Imar Bankası
34
Egebank
Yurtbank
Yaşarbank
Sale
09.08.2001
Merged
Sümerbank
Oyak Bank
A.Ş.
Bank
Kapital
Ulusalbank
Sümerbank
Toprakbank
İnterbank
Bayındırbank
Esbank
Merged
Etibank
Etibank
Birleşik Fon
Bankası
İktisat
Bankası
Kentbank
EGS Bank
Pamukbank
Transfer
12.11.2004
Bank
Ekspres
Sale
30.06.2001
Tekfenbank
A.Ş.
Demirbank
Sale
20.09.2001
HSBC Bank
Plc.
Sitebank
Sale
20.12.2001
Novabank SA
Tarişbank
Sale
21.10.2002
Denizbank
A.Ş.
Türk Ticaret
Bankası
Liquidation
Decree
T. Halk
Bankası A.Ş.
Türk Ticaret
Bankası A.Ş.
under
Liquidation.
Figure 6: Banks whose shareholder rights except dividends have been transferred to the Fund.
35
2.2. Banks Transferred to the Fund
Information about 20 banks in Turkish banking system, whose management and control
and shareholder rights except dividends have been transferred to SDIF is shown in Figure 5.
SDIF still carries on the resolution proceedings regarding Birleşik Fon Bankası and TürkBank in
liquidation.
Birleşik Fon Bankası (previously Bayındırbank A.Ş.)
Under a Fund Board Resolution, Birleşik Fon Bankası maintains its operations under
the structure of the Fund, primarily to fulfill the function of resolution. In this framework, in
2008 the bank has continued its activities towards reducing its balance sheet and increasing the
liquidity.
The total assets of the bank amounting to YTL 843million as of 2007, has declined to
YTL 834million, its equities which amounted to YTL 666 million (including profit) has declined to
YTL 659 million and the share of the liquid assets in its actives has increased from 75% to 85%.
The resource surplus amounting to YTL 106.7 million, which was confirmed by the bank
as of April 30, 2008, was transferred to the Fund on June 10, 2008. The decline in the balance
sheet of the bank through the resource transfer affects the Bank’s dwindling strategy positively.
TürkBank in Liquidation
As a result of proceedings under the Liquidation Plan, which has been prepared in
agreement with the Fund, total assets, which had been YTL 349 million as of 2007 rose to YTL
409 million as of December 31, 2008. Moreover, the equity of the bank amounting to YTL 113
million (including profit) has increased to YTL 178 million. The off balance sheet liabilities of the
bank which had been YTL 99 million rose to YTL 110 million due to soaring foreign exchange
rates and the number of bank personnel has been reduced from 82 to 66 as of December 31,
2008.
As of December 31, 2008, the balance sheet of the bank became 95% liquid. Liquidation
process has been completed for the most part except the ossified asset accounts and accounts
for which lawsuits are continuing.
2.3. Recovery Activities
As a result of the follow up proceedings carried out within the scope of the powers
assigned to SDIF by the Banking Law and Act No. 6183 on Procedures for Collection of Public
Receivables, important progress has been made in efficient collection of public receivables
especially after 2005. Revenues obtained from resolution activities for recovery of the resources
that the Fund has transferred to the banks are given in Chart 11.
Annual amount collected
8.000
20.000
6.975
7.000
17.500
6.000
15.000
5.000
12.500
4.305
4.000
10.000
3.000
1.821
2.000
1.000
147
653
47
674
342
2.334
7.500
5.000
797
2.500
0
Cumulative amount collected
Revenues from Resolution Activities by Years (USD in millions)
0
Before 2000 2001 2002 2003 2004 2005 2006 2007 2008
2000
Annual Amount Collected
Cumulative Amount Collected
Chart 11: Revenues from resolution activities by years.
36
Total amount of collections made from resolution activities has reached USD 18,095
million as of December 31, 2008. USD 2,334 million of this amount was realized in year 2008.
Data regarding these collections is shown in Table 11.
Distribution of Revenues from Resolution Activities (USD in millions) *
As of
Dec. 31, 2007
Resolution Revenues
Year 2008
Cumulative as
of Dec. 31,
2008
15,026
2,289
17,315
11,940
2,036
13,976
- Collections from Subsidiaries
627
38
665
- Collections from Real Estate and Movables
598
129
727
1,718
86
1,804
-
143
**
- Collections made from Receivables under follow-up
- Collections from Banks under control of SDIF
- Collections from Banks and subsidiaries under
liquidation
143
Financial Revenues
735
45
780
15,761
2,334
18,095
Total
Table 11: Distribution of revenues from resolution activities
*
Figures shown in the table are based on SDIF’s transactions made in cash.
** Gross amounts collected are taken into consideration in resolution revenues. Refundments, payments etc.
made from collections have not been deducted from the amounts.
2.3.1. Activities Regarding Collection of Fund Receivables under Follow-up
Under the authority assigned to SDIF by the Banking Law the Fund carries out
prosecution and collection operations for;
•
•
•
receivables arising from exploitation of the resources of the banks whose operating
permissions have been revoked or management and control have been transferred to
SDIF,
receivables arising from notification of the insured amount of deposits and participation
funds lesser than the actual amount
receivables assigned to the Fund and other receivables.
Principles and procedures regarding prosecution and collection of Fund receivables have
been arranged under the “Regulation on Principles and Procedures regarding Prosecution and
Collection of the Receivables of the Savings Deposit Insurance Fund” which was published in
Official Gazette No. 26396 dated January 7, 2007.
Within the scope of resolution of banks that have been transferred to SDIF, as end of
2008 the Fund has taken over 207,530 files of receivables from these banks or in another way,
amounting to YTL 8.8 billion. The Fund has taken over and been assigned with 59 of these files
amounting to YTL 60 million only in 2008.
The total amount of collections from Fund receivables under follow-up was USD 2,013.73
million; USD 1,999.67 million in cash (after the refunds from the collections deducted) and USD
14.6 million in kind in 2008. The detailed information on the collections is shown in Table 12.
37
Collections from Fund Receivables under Follow-up in 2008 (USD in millions) *
Collections in
Cash
Majority Shareholders
Collections in
Kind
Total
661.46
13.94
675.40
Corporate Loans
47.20
-
47.20
Consumer Loans
3.17
0.12
3.29
Other **
1,287.84
-
1,287.84
Total
1,999.67
14.06
2,013.73
Table 12: Collections from Fund receivables under follow-up in 2008
* The net collection amounts are taken into account during the calculation of the amounts seen in table.
The refundments, payments etc. are deducted from the collection amounts.
** The collections deposited to Fund accounts, as a result of sales made under Act No. 6183 and
Commercial and Financial integrity sales, are collections to be paid to other titleholders or other third
party entities or public institutions after once reimbursement sequences are finalized.
Fund concludes agreements with the majority shareholders of banks regarding the debt
amounts and repayment conditions and makes significant progress in collecting the public
receivables. In this framework, some repayment agreements signed with bank majority
shareholders, from whom the Fund has receivables, come to an end by means of payment. In
case the majority shareholders do not meet the obligations, the legal authorities are used
regarding the default. Information on operations concerning the prosecution and collection of
receivables from bank majority shareholders are as follows.
2.3.1.1. Bank Majority Shareholders with whom Protocols were signed
Information about protocols and collections from receivables related to majority
shareholders with an existing Protocol as of December 31, 2008, are shown in Table13.
Bank Majority Shareholders with whom Protocols were Signed
Protocol Amount
Amount collected
Majority
(USD in millions) *
(USD in millions) **
Name of
Date of
Shareholder
Cumulative as
the Bank
Protocol
Group
Cash
Non-cash
Year 2008
of Dec. 31,
2008
Majority Shareholders who have cleared their Cash Debts under Protocols
Sitebank
Sürmeli Group
21.11.2003
8.44
Pamukbank
Çukurova Group
04.08.2004
-
-
9.59
Yaşarbank
Yaşar Group
23.12.2005
2,172.27***
8.02
13.44
2,169.77
214.16
12.16
0.15
270.69
Demirbank
Cıngıllı Group
05.09.2003
98.27
0.07
-
103.43
Kentbank
Süzer Group
01.03.2007
252.84
0.12
0.09
188.16
9.23
0.21****
80.64
14.12
11.95
33.90
6.75
2.25
108.89
Majority Shareholders with Debt outstanding under Protocols
Bank
30.04.2003
Ceylan Group
331.57
Kapital
15.01.2008
Egs Bank
EGS Group
315.00
Sümerbank
Garipoğlu Group
12.08.2004
366.97
TYT Bank
Lapis Group
17.04.2007
29.26
-
0.83
2.43
TOTAL
28.92
2,967.50
Table 13: Bank majority shareholders with whom protocols were signed
*
USD equivalent of the total debt amount related to protocol.
**
Amounts collected comprises of the cash amounts and amounts in kind. Refundments from collections are
deducted.
*** Additional protocol signed with Cukurova Group on October 1, 2007 amounting to USD 72,3 million is
included in the total amount and is still under follow-up.
**** Collections from companies associated with majority shareholders.
38
Important events that took place in 2008 regarding these majority shareholders and the
current status are as follows:
Sitebank: The cash debt amount, which was tied to a payment plan in a protocol signed with
Surmeli Group in November 21, 2003 has been liquidated.
Pamukbank: The cash debts of Çukurova Group which was restructured with a new payment
plan under the supplementary protocol, which was signed on August 4, 2004 as an extension of
the master agreement, dated January 31 2003, has been paid off. The collections under the
supplementary protocol, dated October 1, 2007 and amounting to USD 72.3 million, are still
going on.
Furthermore, with respect to the official agreements between Çukurova Group and
Nergis Group for the sale of Interbank and for the purposes of amortisement of debts of
Çukurova Group Companies to Interbank, in order to collect the Fund’s receivables amounting
to USD 249 million, the Fund Board decided to start legal proceedings including a possible lien,
for collection and follow up, under the Law No. 6183, and the Fund appointed one member to
the Executive Board and two members to the Supervisory Board of the related companies.
Negotiations with the Group for collection of the Fund’s receivables are underway.
Yaşarbank: The cash debt within the scope of the protocol with Yaşar Group dated December
23, 2005 has been liquidated by the lump payment in cash made in 2006.
Demirbank: The protocol signed with Cıngıllı Group on September 05, 2003 has been revised on
May 11, 2007 and the Group’s debt to the Fund was liquidated in 2007.
Kentbank: Süzer Group paid off the total debt within the context of the protocol signed on
March 1, 2007 with a lump sum payment in cash. The legal proceedings for the collection of the
receivable, assigned to the Fund from Atlas Bank in liquidation, amounting to USD 1.9 million,
are still in progress.
Bank Kapital: The legal proceedings continue within the scope of the protocol signed with the
Group on May 2, 2003. The Group has made an offer for a new payment plan under the FRA. In
line with the Group’s request for the revision of the FRA, Creditor Banks Consortium meetings
were held on various dates. In the last meeting held on December 2, 2008, parties agreed to
proceed with revision of the FRA, provided that parties carry the issue to their managements.
EGS Bank: During talks carried out with Deniz A.Ş, comprising of EGS Group’s legal
representatives, for the purposes of collecting the Fund’s receivables from EGS Group and other
companies associated with it, parties agreed to sign a protocol. Consecutively a protocol between
Deniz A.Ş. and the Fund was signed on January 25, 2008. 76 covenants were signed within this
scope and works for completion of the protocol continue.
Sümerbank: A supplementary protocol revising the current payment plan under the August 12,
2004 dated protocol was signed on January 1, 2009. Proceedings for the sale of certain assets of
the Group in line with the protocol continue.
TYT Bank: A protocol for the collection of receivables arising from insolvent TYT Bank, between
the Fund and Lapis Group, the former majority shareholder of TYT Bank was signed on April 17,
2007. However, given the current conjuncture, the group failed to fulfill its obligations stemming
from the protocol. Talks for a settlement with the Group continue.
2.3.1.2. Other Majority Shareholders
Protocols have been signed with the majority shareholders of Etibank, Bank Ekspres,
İktisat Bankası, Yurtbank, Esbank, Toprakbank and Interbank in order to collect the receivables
of the Fund. However, there have been problems regarding the protocols as new legal conditions
39
arose or the terms of the contract were not fulfilled. There are no protocols signed with the
majority shareholders of Egebank, Türk Ticaret Bankası, Tarişbank and İmar Bankası.
Information on collections from majority shareholders of banks with problematic
protocols or majority shareholders with no protocols as of December 31, 2008, can be seen
below in table 14.
Other Bank Majority Shareholders
Name of the Bank
Amount Collected (USD in millions) *
Cumulative as of Dec.
Year 2008
31, 2008
17,54
273,13 **
Majority Shareholder
Etibank
Dinç Bilgin / Medya Group
Bank Ekspres
Korkmaz Yiğit Group
-
44,49
İktisat Bankası
Erol Aksoy Group
3,53
158,77
Yurtbank
Balkaner Group
1,61
126,74
Esbank
Zeytinoğlu Group
14,43
86,29
İnterbank
Nergis Group
89,14
233,04
Toprakbank
Toprak Group
421,78
480,27
Bayındır Bank***
Bayındır Group
3,18
22,63
İmar Bankası****
Uzan Group
85,16
7.010,32
Egebank
Demirel Group
9,51
131,50
Türk Ticaret Bankası
TTB Pension Fund
Cotton, Olive, Grape, Fig
Agriculture and Sales
Cooperative Enterprise
Total
0,60
1,59
-
-
646,48
8.568,77
Tarişbank*****
Table 14: Other bank majority shareholders
*
Amounts collected comprises from amounts in cash and in kind. Refundments are deducted from the
collections.
**
The amount USD 33.8 million collected regarding the debts that Medya Group was held responsible in the
protocol dated, November 17 2003, is recorded under collections from corporate loans.
*** The sales amount USD 77.05 million of Sagra Commercial and Economic Integrity, composed of assets of
the Group and put out to tender on September 25, 2007, is followed under temporary accounts as the
cases for cancellation of tender and appeal of creditors list are continuing. Therefore the amount is not
included to amounts collected from the Group.
**** Cumulative collection sums from Uzan Group also cover payments made to third parties and public
institutions and corporations.
***** Majority shareholder of Tarişbank does not have any credits in cash raised from its own bank or other
SDIF banks. Current non-cash risks are still under follow-up.
Important developments in 2008 regarding the mentioned majority shareholders and
their current status are given below:
Etibank: In respect to the Fund’s receivables from Dinç Bilgin Group, USD 1,100 million was
collected on April 22, 2008 as the price of the tender held for the sale of ATV-Sabah Commercial
and Economic Integrity on December 5, 2007. The list showing the sequence of payments to
creditors was published in the Official Gazette No. 27072 on December 2, 2008. The process for
the finalization of this list and signing of an agreement with the Group is underway.
Bank Ekspres: The Fund Board decided to start legal procedures under Act No. 6183 for certain
legal representatives of the Korkmaz Yiğit Group.
The Fund Board also decided to take legal action in line with provisions of Act No. 6183
about an individual who embezzled USD 10 million of the Bank’s resources.
Also the Fund Board decided to take legal action under the same act regarding the use of
the resources of Bank Ekspres and Sümerbank in operation of Kanal 6 TV Channel during and
following the sale of Kanal 6 Radyo ve Televizyon Yayıncılığı (Radio and TV Broadcating) A.Ş.
first to Korkmaz Yiğit Group and then to the Garipoğlu Group.
40
On the other hand, Demir Finansal Kiralama (Financial Leasing) A.Ş. filed for bankruptcy
of Korkmaz Yiğit Group which resulted with a bankruptcy decree for the said Group.
İktisat Bankası: The Fund Board decided to execute the default provisions of the debt
liquidation protocol with Erol Aksoy Group, dated May 9, 2006. In this respect, as the indebted
Group failed to come up with a sufficient solution to pay its debts, the Fund, under Article 134
and temporary Article 11 of the Banking Law and the article 15/7-a of the Abolished Banks Act
No. 4389, has taken back the management and supervision and the shareholder rights except
dividends, of all the 37 companies which were handed over to the Group through the afore
mentioned Fund Board decision, except one that went bankrupt.
The Fund, decided to start debt follow-up procedures under Act No. 6183 for Erol Aksoy
Companies’ legal representatives with authority to represent and bind, for collection of the
Fund’s receivables.
The Fund appointed one member to each of the Executives /Directors Board and
Supervisory Board of the Çukurova Group Companies referred here as the Aks Group namely:
Aks Televizyon Reklamcılık ve Filmcilik Sanayi ve Ticaret A.Ş., Atlas Yayıncılık Yapımcılık ve
Reklamcılık A.Ş., Eksen Yayıncılık Dağıtım Pazarlama ve Dış Ticaret A.Ş., Medya Pazarlama A.Ş.
ve Show Haber Ajansı Ltd. Şti.
Through increase of capital, 17.07% total shares of shareholders related with Erol Aksoy
were reduced to 3.89%, and Genel Denizcilik A.Ş became the absolute owner of the 13.18% of
the shares of Aks Televizyon Reklamcılık ve Filmcilik Sanayi ve Ticaret A.Ş. The Fund Board
decided to register the 13.18% of the shares of Aks Televizyon Reklamcılık ve Filmcilik Sanayi ve
Ticaret A.Ş owned by Genel Denizcilik A.Ş, to the Fund under the provisions of Article 134 of the
Banking Law.
Under the Article 15/7-a of the Abolished Banks Act No. 4389, five of the group’s
companies, whose management and supervision along with shareholder rights except dividends
were transferred to the Fund, were struck off from its trade registry. The present number of
group companies under management and supervision of the Fund is 41.
On May 27, 2008, USD 520,000 was collected as the price of the tender held for the sale
of Radyo Nostalji Commercial and Economic Integrity on December 19, 2008.
Yurtbank: The Bakırköy Gayrimenkulleri Commercial and Economic Integrity was sold for YTL
33.3 million through a tender held on January 10, 2008. A down payment amounting to
YTL 1 million was collected, and the remaining amount will be collected under an installment
plan.
Yalova Evleri Commercial and Economic Integrity was sold through a tender held on
January 22, 2008 for USD 15.1 million, and the entire tender price was collected.
On March 13, 2008, the Fund Board decided to execute the default provisions of the debt
liquidation protocol with Balkaner Group, dated September 3, 2007, as the Group failed to fulfill
its responsibilities stemming from the protocol.
Esbank: Esen Makine ve Esyem Eskişehir Commercial and Financial Integrity consisting of
goods, rights and assets of the Esen Eskişehir Makine ve Tesis İmalatı Sanayi ve Ticaret A.Ş.
and Esyem Eskişehir Yem Sanayi A.Ş., was sold through a tender for USD 8.75 million.
Apartment blocks consisting of 40 flats in Eston Reşitpaşa Residences, built by the group was
registered to the Fund on July 1, 2008 with a value of USD 5.1 million, as part of liquidation of
the group’s debt to the Fund.
As a result of the difficulties Zeytinoğlu Group faced in making the payments under the
protocol dated February 2, 2006, management and supervision and shareholder rights except
dividends, of 28 companies owned by the Group was taken over by the Fund.
Interbank: Due to the Group’s failure to pay the installments and the interest in line with the
protocol signed with Group on August 19, 2004 the Fund decided to execute the “default and
maturity” article of the said protocol and the provisions of the Act No. 6183 in order to collect
the Fund’s receivables from Nergis Group companies and guarantors of the protocol.
Through a Fund Board decision, 75% shares of Yasemin Mensucat Sanayi Ticaret A.Ş.
along with its management and supervision was taken over by the Fund. The management and
41
supervision of the Bis Enerji Elektrik Üretim A.Ş was partially taken over by the Fund. The Fund
has also taken over the management and supervision of the Olay Radyo ve Televizyon Yayıncılık
A.Ş, Olay Basın ve Yayıncılık A.Ş., Çağlar Holding A.Ş., Olay Medya A.Ş, and Yeşim Turizm
İşletmeleri Sanayi ve Ticaret A.Ş.
The Fund Board also decided to claim the Interbank resources --used in the sale of the
bank from Çukurova Group to Nergis Group-- from Çukurova Group’s companies and real
persons, and started legal proceedings.
A protocol for debt liquidation was signed with the debtor NTV Haber Ajansı Reklam ve
Ticaret A.Ş. (New title: Doğuş Yayın Grubu A.Ş.) and A Yapım Televizyon Programcılık A.Ş. (new
title: NTV Radyo ve Televizyon Yayıncılığı A.Ş.), and USD 76.1 million in principal and USD
821,000 in interest under the protocol, and the debts was cleared.
The receivables of T. İş Bankası A.Ş, related with the BİS Enerji Elektrik Üretim A.Ş.,
from Nergis Group companies; Nergis Holding A.Ş., Sifaş Sentetik İplik Fabrikaları A.Ş., Polylen
Sentetik İplik Sanayi A.Ş. were alienated to and taken over by the Fund with a payment of USD
32 million on June 6, 2008.
The Fund Board decided to sell İnter Sigorta A.Ş. to EuroIns Insurance Group for YTL 1
million, and the process is underway.
The shares of the Nergis Havacılık A.Ş. were seized, and a helicopter seized from this
company was sold to Sancak Hava Yolları A.Ş in an auction for YTL 6 million.
Toprakbank: An additional protocol was signed with the Group on February 06, 2008 as an
annex of the main protocol dated December 18, 2004 and immovables, which belong to the
Group, in Libadiye were sold for of USD 362.8 million on February 14, 2008 and this sum was
collected by the Fund. However, as the Group failed to fulfill some of the obligations stemming
from the protocol and defaulted, proceedings for the sale of the Group’s bonded and seized
assets are underway.
Bayındırbank: Sasbaş Commercial and Economic Integrity, which was formed from the total
shares of Sasbaş-Samsun Serbest Bölge Kurucusu ve İşleticisi A.Ş. owned by the Fund’s public
debtors, was sold for USD 1.25 million at the tender held on May 9, 2008. The tender price was
collected by the Fund on June 4, 2008 and the shares were handed over to the buyer. The
receivables of Birleşik Fon Bankası from Bayındır Group companies amounting to USD 15.7
million were alienated to and taken over by the Fund May 9, 2008.
İmar Bankası: Sale of commercial and economic integrities related with goods, rights and assets
seized under the provisions of Act No. 6183, were carried out in line with the said act and
Abolished Bank Act No. 4389. The Rumeli Plaza commercial and Economic Integrity, was sold in
an auction held on January 30, 2008 for YTL 35.1 million (USD 28.3 million), and the sale price
was collected. Kral TV and Kral FM Commercial and Economic Integrities were also sold at an
auction held on June 18, 2008 for USD 95 million, and the auction price was collected.
Adabank Commercial and Economic Integrity was sold at an auction held on September 10,
2008 for USD 57.1 million. BRSA investigation on the auction is underway.
Under a Fund Board decision, the Yachts, “M/Y Beluga (Frequency)” owned by Mavi
Turizm Yatırımları Ticaret A.Ş. and M/Y Splendido (Airwaves) owned by Rumeli Çimento Sanayi
ve Ticaret A.Ş. were taken over by the Fund on May 29, 2008 on account of its receivables from
these companies. The said yachts were sold at a value of USD 53.5 million, and the sum was
deducted from the Group’s debts. Moreover, with the collections from this Group, a total of USD
124 million was repaid to public institutions and corporations.
Egebank: Following the collections made under the protocol signed for the liquidation of the
Fund’s receivables arising from the use of the Bank’s resources during the transfer of shares
between M. Sami Erdem and Demirel Group, the debts, which were the subject of the protocol,
have been cleared as of February 15 2008, in line with Fund Board decisions.
Considering the recent situation in the legal process, the Fund signed a reconciliation
and acquaintance agreement on April 25, 2008 with Şevket Demirel, Neslihan Demirel, Ş. Nihan
Atasagun, Hakkı Atasagun, Z. Sezen Demirel, U. Binhan Kesici, H. Hüseyin Uysal, Yılmaz Kasap
and Sertaç Bora Özyurt, and the following companies whose management and supervision were
taken over by the Fund on August 23, 2007: Göltaş Göller Bölgesi Çimento Sanayi ve Ticaret
42
A.Ş., Göl Yatırım Holding A.Ş., Göltaş Hazır Beton ve Yapı Elemanları Sanayi ve Ticaret A.Ş.,
Göltaş Enerji Elektrik Üretim Sanayi ve Ticaret A.Ş., Puccinelli - Elmataş Göller Bölgesi Meyve
Sebze Değerlendirme Sanayi ve Ticaret A.Ş., Elma - Su Elma ve Diğer Meyveler Özü ve Suları
Sanayi ve Ticaret A.Ş., Orkav Orman ve Tarım Sanayi Hammadde Üretim A.Ş., OZF Fidancılık
Sanayi ve Ticaret A.Ş., Orma Orman Mahsulleri İntegre Sanayi ve Ticaret A.Ş. The shareholders
rights of the said companies were handed back to their former owners while the management
and supervision of these companies were handed back to the former members of the Board of
Executives on May 15, 2008. Also, with a Fund Board decision, the shares of the Göl Yatırım
Holding A.Ş. which had been registered to the Fund, was handed back to their former owners
Şevket Demirel, Neslihan Demirel, Ş. Nihan Atasagun and U. Binhan Kesici.
On the other hand, the individual bankruptcy case which was filed with the Istanbul 6th
commercial court of first instance, with the file number 2001/4E, in line with Article 17 of the
Abolished Bank Act No. 4389, resulted with a bankruptcy decree for Yahya Murat Demirel
during the court hearing on December 31,2008.
Türk Ticaret Bankası: In line with the Fund Board Decision for the liquidization of the debts of
an individual who is the co-debtor and co-surety of the Bankrupt Martı Denizcilik A.Ş., alienated
and transferred to the Fund by Ticaret Factoring Hizmetleri A.Ş. in liquidation, a protocol
amounting to USD 1 million was signed with Karden Gemi Acentalığı A.Ş.
2.3.1.3. Commercial and Economic Integrities
The Fund may sell the entirety or part of the assets, rights and benefits, it has seized
from real or legal persons, in line with the provisions of Act No. 6183 and within the scope of the
Banking Law, by forming commercial and economic integrities. Thus, the Fund ensures that the
activities of commercial enterprises under sale process, continue and they are sold at higher
prices. The information related to the Commercial and Economic Integrities sold through
tenders in 2008 are shown in Table 15.
Commercial and Economic Integrity Sales in 2008
Commercial and Economic Integrity
Date of Tender
Tender Price
Tender prices collected in 2008
Yalova Evleri
22.01.2008
YTL 15,100,000
Rumeli Plaza
30.01.2008
YTL 35,100,000
Esen Makina
16.04.2008
YTL 5,500,000
Esyem Eskişehir
16.04.2008
YTL 3,250,000
Sasbaş
07.05.2008
USD 1,250,000
Radyo Nostalji
27.05.2008
USD 520,000
Kral TV ve Kral FM
18.06.2008
USD 95,000,000
Bakırköy Gayrimenkulleri*
10.01.2008
USD 3,380,000
Gala TV
28.05.2008
USD 550,000
Radyo Cool
28.05.2008
USD 31,000
Adabank
10.09.2008
Tender Prices not collected in 2008
Total (USD) **
USD 57,100,000
USD 232,041,188.-
Table 15: Commercial and economic integrity sales in 2008
* As the tender price for Bakırköy Gayrimenkulleri Commercial and Economic Integrity was tied to an
installment plan only YTL 1 million was collected.
** Buying exchange rates of CBRT on the date of commercial and economic integrity tender apply in
conversions to YTL.
As the Article 134/8 of the Banking Law, amended by Law No. 5742 stipulates: if the
Fund Board decides to do so, the past term debts of companies arising from purchase of
technical support, software, hardware, equipments, goods and services, the debts owed by
persons to the State and the social security organizations and the debts arising from the share
43
of Treasury are paid off respectively --provided that they were incurred before the sale-- from the
amounts obtained through the sale of assets and properties of real or legal persons, either as a
part of a commercial and economic integrity or separately and individually through compulsory
execution. The remaining balance thereof will be used for settlement and repayment of the debts
owed by persons to the other public institutions and corporations and upper regulatory boards,
on a pro rata basis.
2.3.1.4. Corporate and Consumer Receivables
In respect to, receivables from corporate loans, 20 debt repayment agreements have been
signed amounting to a total of USD 818,000 and 18 of the debts in this scope have been
collected and settled in 2008. There are 11 debt repayment agreements amounting to USD 24.3
million as of December 31, 2008.
Collections from the corporate loan receivable files that were followed up by the Fund in
2008, amounted to USD 12.5 million. A total of USD 34.7 million have been transferred to the
Fund accounts in 2008 in accordance with revenue sharing practice, from the collection of
receivables from files physically transferred and debts assigned to RCT Varlık Yönetim A.Ş.
under the 2nd Receivable Sale Tender.
Collections from consumer loan receivables amounted to USD 3.3 million in 2008.
2.3.2 Activities Regarding Fund’s Subsidiaries
2.3.2.1. The Subsidiaries Taken Over
Out of banks transferred to the Fund and groups that are debtors of the Fund, 188
subsidiaries have been taken over as of December 31, 2008. Also within the scope SDIF’s
powers stemming from Article 143 of the Banking Law, the Fund has participated in RCT Varlık
Yönetim A.Ş. with a share of 1‰. Information regarding subsidiary shares taken over in 2008 is
shown in Table 16.
Subsidiaries Taken Over in 2008
Title of the Company
Göl Yatırım Holding A.Ş.*
Ekspres Yatırım Menkul
Değerler A.Ş.
Aks Televizyon Reklamcılık ve
Filmcilik San. ve Tic. A.Ş.
Atlas Finansal Kiralama A.Ş.**
Yasemin Turizm ve Ticaret A.Ş.
Paid-up
Capital (YTL)
SDIF Share
Rate
Book Value at the
Date of Transfer
(YTL)
Date of
Transfer
10,226,992
% 99.99
28.02.2008
10,939,000
8,000,800
% 0.16
29.02.2008
-
60,000,000
% 17.07
18.04.2008
-
3,000,000
% 98.65
06.05.2008
-
10,000,000
% 75.00
23.06.2008
7,500,000
Table 16: Subsidiaries taken over in 2008
* Shares of Göl Yatırım Holding A.Ş. were returned to the former owners on May 15, 2008 with a Fund
Board decision.
** With the 88.7% shares of Atlas Finansal Kiralama A.Ş. taken over in 2008, percentage of the Fund’s
shares in this company rose from 9.95% to 98.65%.
Status of subsidiaries transferred to the Fund is shown in Table 18 as of December 31,
2008. There are currently 21 subsidiaries and 17 affiliates in the Fund’s portfolio.
Sold
123
Status of the Subsidiaries Transferred to the Fund (December 31, 2008)
Liquidated/
In the Sale
Struck off the
Under
Remaining
Process
Register*
Liquidation
1
25
2
38
Total
189
Table 17: Status of subsidiaries transferred to the Fund as of December 31, 2008
* Companies struck-off the register without a decision for liquidation.
44
2.3.2.2. Subsidiaries Sold
From among subsidiaries taken over by the Fund, 123 subsidiaries were sold as of
December 31, 2008 at a total price of USD 932 million and share transfers have been completed.
Information regarding the sales completed in 2008 is shown in Table 18.
Subsidiaries Sold in 2008
Name of the Subsidiary
Toprak Sigorta A.Ş.*
Ekspres Yatırım Menkul Değerler A.Ş.
Title of the Buyer
Euro Yatırım Menkul
Değerler A.Ş.
Deniz Yatırım Menkul
Değerler A.Ş.
SDIF Share
Rate
Total Sales
Amount
% 95.06
YTL 7,250,000.-
% 0.16
YTL 20,000.-
Table 18: Subsidiaries sold in 2008
* Merged with Ege Sigorta A.Ş.
In addition, sale process of Kazakistan-Ziraat International Bank and Toprak Sigorta
A.Ş. continues as of December 31, 2008.
2.3.2.3. Subsidiaries Under Liquidation/Bankruptcy
Important developments in 2008 about subsidiaries regarding which the Fund is
performing liquidation/bankruptcy operations and their current status are shown in Table 19
below.
Subsidiaries under Liquidation/Bankruptcy
Title of Subsidiary
Eskişehir Çimento Fabrikaları A.Ş.
(In Liquidation)
Jamak Jant ve Makine İmalatı Sanayi ve
Ticaret A.Ş. (In Liquidation)
Elektrobakır ve Alüminyum Sanayi A.Ş
(In Liquidation)
Ernur Elektrik Sanayi ve Ticaret A.Ş.
(In Liquidation)
Bay Turizm A.Ş. (In Liquidation)
Multinet Satış Pazarlama ve Müşteri
Hizmetleri A.Ş. (In Liquidation)
Current Status
Liquidation was cancelled through a Fund Board decision.
The Fund Board decided to close the liquidation and
strike-off the company from register. Following the
Ordinary General Meeting, the liquidation was closed and
the company was struck-off the register.
In accordance with the Fund Board decision and the
Ordinary General Meeting held on November 27, 2008 the
rapid dissolution of the company in line with the Article
134 of the Banking Law is decided.
Table 19: Subsidiaries under liquidation/bankruptcy.
Moreover, the Fund Board decided to strike-off register the Doğuş Çelik Cıvata A.Ş, 100
% of whose shares are owned by the Fund. The said company was removed from the Fund’s
portfolio on August 29, 2008.
2.3.3. Activities Regarding Real Estates and Movables
With the total number of real estate taken over by the Fund on account of its receivables
and the ones returned under court ruling taken into consideration, the number of real estate
that entered the Fund’s portfolio, increased by 66 in 2008. The number of real estate taken over
by the Fund as of December 31, 2008 is 5,204. The status of the real estate as of December 31,
2008 is given below in Chart 12.
45
Status of Real Estates Taken Over as of December 31, 2008
Sold
4.782
Remaining
422
Chart 12: The status of the real estates taken over by the Fund as of December 31, 2008
As of December 31, 2008, 4,782 of the real estate have been sold. 278 of these were
realized in 2008 for YTL 139.4 million.
14 of the movables in the Fund’s portfolio were offered for sale in 2008, 12 of these
movables were sold for YTL 96,000 while two yachts were sold for USD 53.5 million.
2.4 Lawsuits of which the Fund is Litigator
The lawsuits where the Fund is litigator are followed generally in 5 categories. General
information on lawsuits and follow-ups are as follows as of December 31, 2008:
2.4.1. Lawsuits and Follow-ups Regarding Majority Shareholders/Managers
The following lawsuits are litigated by the Fund against former majority shareholders
and managers of the banks whose shares are transferred to the Fund;
•
Restitution and Compensation lawsuits filed against use of bank resources for personal
interests by jeopardizing secure operation of the bank,
•
Financial liability lawsuits filed in cases where banks incur losses due to failure to fulfill
duties under laws and articles of association, issuing of inaccurate balance sheets,
income statements and unduly giving out of loans in violation of banking principles and
procedures.
•
Personal bankruptcy lawsuits filed for damages limited to those incurred on the banks
by causing the bank’s transfer to the Fund due to decisions and actions in violation of
the law,
•
Lawsuits filed for dismissal of objection claims filed against prosecutions carried out
under Execution and Bankruptcy Code to collect and follow-up receivables from majority
shareholders and/or corporate loan receivables not-related with majority shareholders,
•
Criminal lawsuits filed against former majority shareholders and bank managers through
criminal complaints made in line with provisions of Turkish Criminal Code and Banking
Laws.
Also administrative lawsuits have been filed against the Fund by former majority
shareholders, bank managers and other parties regarding proceedings initiated by the Fund.
The status of lawsuits and execution prosecutions as of December 31, 2008 is shown in Table
20 and Table 21.
46
Lawsuits Regarding Majority Shareholders/Managers of Banks
Number of
Amount (YTL)*
Lawsuits
Cases filed by the Fund
674
23,578,695,648
Cases filed against the Fund
Cases filed in the scope of the Law No. 6183
599
74,427,503
2,619
-
Penal Lawsuits
153
-
Appeal Cancellation Lawsuits
538
-
4,583
23,653,123,151
Total
Table 20: Lawsuits regarding majority shareholder/managers of the banks.
* These are amounts that are subject of ongoing lawsuits. Rights and interest rates
which are reserved under surplus not included. Buying exchange rates of CBRT on
December 31, 2008 apply in YTL conversions.
Execution Proceedings Regarding
Majority Shareholders/Managers of the Banks
Number of
Execution
Amount (YTL)*
Proceedings
Execution Proceeding started by the
788
10,363,376,381
Fund
Execution Proceedings opened against
54
17,015,779
the Fund
Total
842
10,380,392,160
Table 21: Execution proceedings regarding majority shareholders/managers of banks
* These are amounts that are subject of ongoing execution proceedings. Rights and
interest rates which are reserved under surplus not included Buying exchange rates
of CBRT on December 31, 2008 apply in YTL conversions.
2.4.2 International Lawsuits and Prosecutions
The Fund also makes follow-up in the international arena for lawsuits and operations
related with the Funds’ area of operation, and carries out follow-up proceedings against the
majority shareholders and other debtors of the Fund. General information and important
developments on lawsuits in-progress are as follows:
Lawsuits Related with the International Court of Arbitration
The Fund currently follows up or provides legal and technical assistance for 6 arbitration
cases, 4 of which have been filed against Republic of Turkey in ICSID, and 2 others filed in
reference to UNCITRAL rules. In addition, there is one lawsuit filed in European Court of Human
Rights (ECHR).
Turkey’s Ministry of Energy and Natural Resources have been assigned with representing
the Republic of Turkey in the 3 lawsuits filed with ICSID and the one filed with the ECHR and
getting legal services for these trial processes. Fund has been showing utmost care in providing
the required information and documents to authorities with haste, and providing all sorts of
legal and technical support regarding these lawsuits.
Moreover, there is one ICSID arbitration lawsuit being followed up by the Fund in
coordination with Turkish Ministry of Finance Chief Legal Counselor and General Directorate of
Argumentation. The amount of compensation claimed in this case is USD 19 billion. Also, there
are two arbitration lawsuits filed according to UNCITRAL rules that are followed up by of the
Fund and the amount of compensation claimed in these cases is USD 4.75 billion.
Lawsuit Held in Courts of UK
The Fund started legal proceedings in England for execution of the decree issued by
Turkish Courts regarding the USD 30 million that was provided from Bank Ekspres resources
by Yahya Murat Demirel to be used in his companies which were afterwards transferred to his
personal accounts. As a result of proceedings litigated by the Fund, the British Courts issued a
prohibitory injunction which:
47
•
prohibits transfer of any of Yahya Murat Demirel’ assets in England and in the Wales
amounting up to USD 46 million out of the country,
•
prohibits disposal of any of his assets in England and in the Wales up to the same
amount,
•
prohibits Yahya Murat Demirel to make any transactions and reduce value of these
assets,
•
obliges Yahya Murat Demirel to provide information on his assets
The Court of Appeal of England denied the appeal made by Yahya Murat Demirel for dismissal of
this injunction on July 26, 2007. With the May 5, 2008 dated court ruling which came after the
court hearings on March 18-19, and announced on July 1, 2008, the decision 2001/1461 K of
the Turkish Court for USD 30 million was ratified in favor of the Fund. The hearing of the
lawsuit continues
2.4.3. Lawsuits and Follow-ups Regarding Corporate Loans
Files within the scope of commercial loans granted by the banks in line with general
credit agreements (GCA), which were alienated to and taken over by the Fund, fall in this
category, regardless of whether they are under follow-up within the framework of the Execution
and Bankruptcy Code No. 2004 or not.
Following the alienation and transfer of files sold within the scope of the First and
Second Asset Sale Projects, to the purchaser firms, 567 corporate loan files remained under the
Fund’s follow-up and there are 328 ongoing proceedings and 239 lawsuits related to these files.
2.4.4. Lawsuits and Follow-ups Regarding Consumer Loans
Lawsuits litigated as a result of risks stemming from home loans, agricultural loans,
auto and consumer credits, overdraft accounts and credit cards granted upon a Consumer Loan
Agreement, which were later taken over by the Fund, fall into this category.
The number of consumer loan files alienated to and taken over by the Fund is 188,569.
As a result of the proceedings, campaigns and the 50% discount campaign initiated by a Fund
Board Resolution, the number of files pursued as of December 31, 2008 is 58,511.
2.4.5. Lawsuits not Related with Loans
The lawsuits filed against the Fund regarding issues other than credit transactions and
the lawsuits filed against or in favor of banks whose management and control have been
transferred to the Fund.
•
Action of debt (financial liability arising from off-shore accounts, recourse action and
liability claims, rent arising from real estate property, mesne profits etc and other
receivables),
•
Labor lawsuits (severance and notice pay, holiday receivables, overtime, reemployment,
training expenses, penalty clauses etc.),
•
Real estate lawsuits (cancellation and registration of title deed, termination of
shareholder status, prohibition of intervention, evacuation, claim for rent, determination,
cancellation of MASAK (Financial Crimes Investigation Board) measures etc.),
•
Administrative lawsuits (cancellation of administrative action, money orders, tax and fees
etc.),
•
Criminal lawsuits (lawsuits arising from misconduct in Office, breach of confidence,
embezzlement, cancellation of administrative and traffic fines),
•
Other lawsuits (complaint, cancellation of appeal, negative clearance, cancellation of
disposition, restitution).
Status of lawsuits and executive proceedings as of December 31, 2008 is given under Table
22 and Table 23.
48
Lawsuits not Related with Loans
Number of
Lawsuits
Cases filed by the Fund
1.513
Amount (YTL) *
412,095,702
Cases filed against the Fund
12.474
480,211,889
Total
13.987
892,307,591
Table 22: Lawsuits not related with loans
* These are amounts that are subject of ongoing lawsuits. Rights and interest
rates which are reserved under surplus not included. CBRT buying rates on
December 31, 2008 apply in YTL conversions.
Execution Proceedings not Related with Loans
Number of
Amount (YTL) *
Execution
Proceedings
Execution Proceeding started by the Fund
704
108,126,213
Execution Proceedings opened against
730
23,253,804
the Fund
Total
1,434
131,380,017
Table 23: Execution Proceedings not related with loans
* These are amounts that are subject of ongoing execution proceedings .Rights
and interest rates which are reserved under surplus not included. CBRT
buying rates on December 31, 2008 apply in YTL conversions.
2.5. Debt Payments to the Undersecretariat of Treasury
Within the scope of financing the restructuring of the Banking system, the Law no:5787
amending the law on “Regulating Public Finance and Debt Management” dated July 16, 2008,
which also includes the provisions ratified at the General Assembly of the Turkish Parliament on
June 15-16, for the cancellation of SDIF's debt to the Undersecretariat of Treasury, stemming
from special issue DGBs issued to the Fund for lending, took effect on July 23, 2008 , the day it
was published in the Official Gazette No. 26945.
With the provisions of the framework Article 18 of the Law No. 5787, temporary Article
17 was incorporated into the Law No. 4749 on “Regulating Public Finance and Debt
Management” This article stipulates; “The Treasury’s receivables consisting of; principal,
interest, expenses, and default fines that has arisen/will arise from the Special Issue DGBs lent
to the Fund as of December 31,2007, shall be cancelled without being associated with the
income and expense accounts of the budget, by the Minister of Finance upon the proposal of the
concerning Minister. This act does not terminate SDIF’s rights and powers to pursue and collect
receivables stemming from Bank’s whose operating permissions were revoked or whose
management and control was handed over to the Fund. Savings Deposit Insurance Fund shall
transfer the remaining balance after the deduction of current and probable resolution expenses
and compulsory payments to other institutions in this context from the cash income obtained or
will be obtained from all kinds of property, right and receivables of the banks, whose
management and control were transferred to itself or of the banks whose operating permissions
were revoked, (except the revenues mentioned in the Article 130 of the Banking Law No. 5411
dated October 10, 2005 which constitutes the insurance reserve), to the concerning accounts of
the Treasury within the framework of procedures and principles laid down by the
Undersecretariat of Treasury. Should a need for additional resources for resolution expenses
arise as the mentioned cash returns are transferred, without resorting to the insurance reserve,
the Minister is empowered to issue special issue DGBs by the Treasury to the Fund.”
Under the said article of the law, and with the permission of the Ministry of Finance
dated November 11, 2008, the Treasury’s receivables consisting of; principal, interest, expenses,
and default fines that has arisen/will arise from the special issue DGBs given to the Fund by the
Treasury before December 31, 2007 amounting to YTL 93,292,116,458.83 were cancelled as of
July 23, 2008.
49
Also within the framework of the same article, the procedures and principles, regarding
the transfer of remaining balance after the deduction of current and probable resolution
expenses and compulsory payments to other institutions in this context from the cash income
obtained or will be obtained from all kinds of property, right and receivables of the banks, whose
management and control were transferred to itself or of the banks whose operating permissions
were revoked, were sent to the Fund. After the cancellation, USD 84.9 million in cash was paid
to the Undersecretariat of Treasury. When the USD 1,395 million paid to the Treasury before the
cancellation is taken into account, the amount of repayments made to the Undersecretariat of
Treasury in 2008 reached USD 1,480 million. The cumulative sum of repayments made to the
Treasury as of December 31, 2008 has reached USD 9.3 billion.
The detailed figures regarding the repayments made before and after the cancellation are
given below in Tables 24 and 25.
Fund’s Repayments to the Treasury in 2008 before Cancellation
Repayment
Date
Repayment Amount
USD equivalent of
Repayments*
19.02.2008
USD 363,000,000
USD 363,000,000
20.02.2008
YTL 79,897,500
USD 67,000,000
20.03.2008
YTL 86,065,000
USD 70,000,000
29.04.2008
USD 20,000,000
USD 20,000,000
21.05.2008
YTL 92,805,000
USD 75,000,000
20.06.2008
YTL 166,036,500
USD 135,000,000
24.06.2008
YTL 19,450,000
USD 15,854,255
24.06.2008
USD 407,250,000
USD 407,250,000
25.06.2008
YTL 54,152,639
USD 43,994,345
25.06.2008
USD 194,789,000
USD 194,789,000
25.06.2008
EUR 2,000,000
Total
USD 3,112,400
USD 1,395,000,000
Table 24: Repayments made by the Fund to the Undersecretariat of Treasury in
2008 before debt cancellation.
* The CBRT foreign exchange selling rates on the repayment date apply in
conversions to USD.
Fund Repayments to the Treasury in 2008 after Cancellation
Repayment
Date
Repayment Amount
USD equivalent of
Repayments*
25.08.2008
USD 50,000,000
USD 50,000,000
29.09.2008
22.10.2008
YTL 705,833
USD 32,866,428
USD 570,370
USD 32,866,428
28.11.2008
YTL 697,880
USD 443,634
28.11.2008
USD 186,365
USD 186,365
28.11.2008
EUR 13,050
USD 16,852
31.12.2008
YTL 1,062,151
USD 698,967
31.12.2008
USD 80,826
USD 80,826
31.12.2008
EUR 11,333
USD 16,042
Total
USD 84,879,484
Table 25: Repayments made by the Fund to the Undersecretariat of Treasury in
2008 after debt cancellation.
* The CBRT foreign exchange selling rates on the repayment date apply in
conversions to USD.
50
2.6. Payments to Institutions and Corporations
According to the article 134/8 of the Banking Law which was amended by the Law No.
5472; out of the proceeds of sale of the assets and properties of real or legal persons, either as a
part of a commercial and economic integrity or separately and individually through forced
execution sales; the debts owed by persons to the State and the social security organizations
and the debts arising from the share of Treasury will be deducted and the balance there of are
used for settlement and repayment of the debts owed by persons to the other public institutions
and corporations and the upper regulatory boards, on a pro rata basis.
In the framework of this provision, regarding the assets sold by the Fund and an amount
of USD 367.1 million is paid in 2008 to other public institutions and corporations.
The total cumulative amount paid by the Fund within this scope is USD 6.66 billion as of
December 31, 2008.
51
3.
OTHER ACTIVITIES
3.1.
International Activities
3.1.1. Activities Regarding International Association of Deposit Insurers (IADI)
IADI was established on May 08, 2002 to “contribute to the enhancement of deposit
insurance effectiveness by promoting guidance and international cooperation”. The SDIF has
taken its place among 48 members of IADI as a founding member.
IADI activities that SDIF participated in 2008 are as follows:
•
The Europe Regional Committee Meeting held in Prague, Czech Republic on January 31,
2008.
•
IADI 23rd Executive Council Meeting held in Basel, Switzerland on February 12-15, 2008
•
IADI Europe and Eurasia Regional Committees International Conference titled “Risk
Analysis in Deposit Insurance” held in Moscow, Russia on May 27-28 2008.
•
IADI Standing Council and 24th Executive Council Meetings held in Prague, Czech
Republic on June 9-12 2008.
•
IADI Executive Training Program "Resolutions Management: Principles and Best
Practices" held between July 7-10, 2008 in Washington, U.S.A and September 1-4, 2008
in Taipei, Taiwan.
•
IADI Islamic Deposit Insurance Seminar held in Kuala Lumpur, Malaysia on August 1819 2008.
•
Seventh Annual IADI Conference with the theme "The Role of Deposit Insurance in
Promoting Financial Stability and Economic Inclusion" and the 25th Executive Council
Meeting and Regional and other subcommittee meetings were held in Washington, USA
between October 27-31, 2008.
3.1.2 Activities Regarding European Forum of Deposit Insurers (EFDI)
EFDI has been established in Vienna, on October 2002 to contribute to the stability of
financial systems by promoting European cooperation in the field of deposit insurance as a
voluntary organization. The objective of EFDI is defined as to facilitate exchange of expertise and
information on issues of mutual interest and concern.
Furthermore, one of the important studies of EFDI is to apply EU Directive in the field of
deposit insurance and to discuss the necessary amendments. The SDIF has become the 46th
member of the EFDI on September 2005.
EFDI activities that SDIF has participated in 2008 are as follows:
•
EFDI Board meeting and EU Committee meeting was held in Ispra/Varese, Italy on April
10-11, 2008.
•
EFDI Board meeting held in Moscow, Russia on May 26-28 2008.
•
EFDI Annual Meeting and EFDI-FDIC Joint Seminar titled “Financial Integration and the
Safety Net” held in Dublin, Ireland on September 22-23 2008.
•
EFDI Board meeting held in Rome, Italy on December 22, 2008.
3.1.3 Activities regarding European Union (EU) Accession Period
Meetings that SDIF has participated in 2007 regarding European Union Accession
Activities and studies carried out are as follows:
•
Turkey-EU Economic and Monetary Issues, Capital Movements and the Statistics
Subcommittee meeting held at the Secretariat General for EU Affairs in Ankara on June
25, 2008.
•
Amendment bill prepared within the framework of harmonization with the Eu Acquis was
sent to the BRSA, Undersecretariat of Treasury, and the Central Bank of the Republic of
Turkey for their opinion in line with the Article 63 of the Banking Law.
52
3.1.4 Other International Activities
•
Three executives from the Korean Deposit Insurance Corporation (KDIC) paid a working
visit to the Fund on October 30, 2008. The visiting delegation was briefed on the
insolvent banks and investigation on indebted persons and companies in default and
Turkey’s Judicial and Legal System.
•
The Fund has also attended the Conference titled “Enhancing the Resilience and
Stability of the Islamic Financial System” jointly organized by the Islamic Financial
Services Board (IFSB) and the Institute of International Finance (IIF) and hosted by
Malaysia’s Central Bank, Negara on November 20-21 2008.
3.2.
Media and Public Relations
In order to announce its activities to the public in an efficient, accurate and open way
and to boost public confidence and improve its image the Fund exerts great efforts in media and
public relations area. Information about news published in printed and visual media in 2008
regarding the Fund are shown in Chart 13 and 14.
Distribution of News Published in Media Regarding the
Fund
Internet
3.929
Newspaper
5.094
TV
1.588
Chart 13: Distribution of news published in media regarding the Fund
Distribution of News by Impact
Negative
110
Informative
2.008
Positive
2.976
Chart 14: Distribution of news by their impact
In order to inform the public and Fund personnel regarding activities and legal issues,
the Fund quarterly issues “Scientific Publication-ÇATI” and distributes it to its personnel, media
institutions, academicians and finance and economy sector.
53
Furthermore, in line with the Banking Law the public is informed with reports issued
quarterly regarding lawsuits, receivables, follow-ups, collections, restructuring and other
activities.
On the other hand, information requests sent under the scope of Law No. 4982 regarding
Acquiring Information, Questions sent by Prime Minister’s Office Communication Center
(BİMER) and Turkish Grand National Assembly are replied. Applications for information to the
Fund in 2008 are shown in Chart 15.
Application for Information Under Law No. 4982
2.500
2.273
2.197
1.589
2.000
1.500
1.000
500
0
13
Application
Positive
Negative
Directed
Chart 15: Applications for information under Law No. 4982
3.3.
Relations with Other Institutions
According to provisions of article No. 100 of Banking Law, the coordination committee
has been set up in order to ensure exchange of information regarding the general status of the
banking sector, measures to be taken following inspection of deposit banks, sharing of
necessary data on credit institutions to be used in calculation of risk-based insurance
premiums, and to ensure that BRSA and the Fund cooperates at an utmost level regarding
topics that are in the Fund’s area of operation and issues which require action. The coordination
committee has met on January 23, April 24, July 30, and October 24, in 2008. General
condition of banking system has been evaluated in the meetings and strategic cooperation and
information sharing between the two institutions were discussed.
Furthermore, the Fund participated in the meetings of Financial Sector Commission
which was set up according to provisions of article 99 of Banking Law to provide reliability and
stability in the financial markets, to provide information exchange, cooperation and coordination
between organizations, to offer common policies and to state opinion on issues related with the
future of the finance sector, on May 28, 2008 and November 28, 2008.
The Fund participated in the “Quest for New Structures in the National and Global
Financial Systems” Conference on August 29, 2008 and the meeting on measures to be taken
for boosting efficiency of financial markets and enhancement of competition held on September
16, 2008 which were both organized by the BRSA.
54
III-INDEPENDENT
AUDITOR’S REPORT
AND FINANCIAL
STATEMENTS
55
56
Auditing of SDIF
In accordance with the article 124 of the Banking Law, internal audit of the Fund is
carried out in line with principles and procedures determined by the Fund while
external audit of the Fund is carried out with the examination of annual expense
accounts and expenditures of the Fund by Court of Accounts.1 The annual accounts
of the Fund are also audited by an independent audit company and the independent
auditor’s report is published in the annual report.
Every year by the end of March, the Fund prepares an annual report that analyzes
the activities in the previous year, including the decisions taken, the regulations
made and their economic and social implications. The annual report also includes
the comparison and evaluation of the Fund's performance targets and the results of
implementation. The annual report, financial statements and the final budget
account of the Fund are submitted to the Turkish Grand National Assembly. A copy
of the final account is also sent to the Ministry of Finance. The Fund informs the
public about its activities at the utmost level via the internet and official bulletins.
The Fund also informs the public by publishing quarterly reports about the
lawsuits, receivables, legal proceedings, collections, restructuring and other
activities. Furthermore, the Fund informs the Plan and Budget Commission of the
Turkish Grand National Assembly with a meeting held once every year.
Also, the SDIF Accounting Directive stipulates that the annual balance sheet and
the income statement of the Fund to be approved by an authorized independent
audit firm operating in Turkey. In line with the temporary article 17 of the
framework article 18 of the Law No. 5787 amending the law on “Regulating Public
Finance and Debt Management” dated July 16, 2008, the first paragraph of the
Article 3 of the procedures and principles laid down by the Undersecretariat of
Treasury regarding “The Transfer of Cash Surplus of Savings Deposit Insurance Fund
to the Accounts of Undersecretariat of Treasury”, stipulates that the Fund should
present the independent audit report to the Treasury, which also should include an
assessment as to whether the payments made to the Undersecretariat of Treasury
were in compliance with the said procedures and principles. In this framework, the
independent audit on the payments made to the Undersecretariat of Treasury, were
carried out by the DRT Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik
A.Ş. (member of Deloitte Touche Tohmatsu).
The Audit Department was assigned with internal audit of the Fund with the “SDIF
Regulations on Audit Activities” which took effect on May 1, 2008, when it was
published on the Official Gazette Issue No: 26863. In line with the said regulations,
procedures for structuring of the Fund’s internal audit services were initiated. In
2008, within the scope of inspection and auditing, Audit Department of the Fund
has carried out the following activities:
•
Inspection of transactions regarding payables and receivables arising from the
resolution activities in subsidiaries of the Fund and the banks whose management
and control were transferred to the Fund,
Inspections and Assessments regarding the former majority shareholders and
managers of the banks,
Financial and administrative inspections regarding the companies, whose
management and control were transferred to the Fund,
Inspections regarding the transactions within the framework of share transfer
agreements,
Various inspections regarding Fund service units.
Proceedings for finalization of judicial inspection requests regarding the Fund’s
activities.
•
•
•
•
•
1
the version as amended by the Law No. 5567
57
1. INDEPENDENT AUDITORS’ REPORT
FOR THE PERIOD 1 JANUARY – 31 DECEMBER 2008
Savings Deposit Insurance Fund
To the Fund Board
İstanbul
1.
We have audited the accompanying balance sheet of the Saving Deposit Insurance Fund (“the Fund" or
"the SDIF") as of December 31, 2008 and the related statements of income and a summary of significant
accounting policies and other explanatory notes. These statements are the responsibility of the Fund's
management. Our responsibility is to express an opinion on the financial statements based on our audit.
2.
We conducted our audit in accordance with International Standards on Auditing. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
3.
In our opinion, the financial statements present fairly, in all material respects, the financial position of
the Savings Deposit Insurance Fund as of December 31, 2008 and the results of its operations for the
year ended in accordance with the Fund’s Accounting Directive, Chart of Accounts and Explanations
(significant accounting policies Note 3).
In addition to our opinion, within the context of the financial statements prepared based on the
aforementioned accounting principles, the Saving Deposit Insurance Fund’s monthly disbursements
made to the Undersecretariat of Treasury have been disclosed in Note 21 and included in the audit
procedures during the audit of the accompanying financial statements. In our opinion, the information
disclosed in Note 21 complies with the procedures and principles set out in the Regulation “Transfer of
Cash Surplus of the Savings Deposit Insurance Fund to the Accounts of the Undersecretariat of
Treasury”.
Without further qualifying our opinion, we would like to draw attention to the following matters:
4.
As explained in Note 30, the Department of Legal Affairs has denoted that the law cases filed against
the SDIF as of December 31, 2008 in aggregate amounted to NTL 2.859.051 Thousand, USD
23.789.539 Thousand, and EUR 207.369 Thousand. The SDIF management believes that the majority
of these cases followed up in the memorandum accounts would not bring any additional liabilities to the
Fund. As the law cases are still in progress, and the ultimate outcome of the matters cannot be presently
determined, no provision has been allocated in the accompanying financial statements.
58
5.
Amendment Act No: 5787 “Regulating Public Finance and Debt Management” dated July 16, 2008 has
come into effect following the issuance in the Official Gazette No: 26945 on July 23, 2008. In
accordance with the framework Article 18 of this amendment act, provisional Article 17 is added to the
Act No: 4749 “Regulating Public Finance and Debt Management”. As detailed in Note 28 (d), in
accordance with such provisional article, as of July 23, 2008 the Fund has derecognized NTL
93.292.116 Thousand of Treasury Debt arising from the Special Issue Domestic Government Bonds that
was lent to the Fund until the end of December 31, 2007 and recognized the related amount as income
under the account of “Income from Cancelled Debts”. Within this context, subsequent to the
derecognition of the Treasury Debts, “Finalized Duty Losses” account amounting to NTL 7.697.135
Thousand has been written off against the account of “Income from Cancelled Debts” and NTL
1.831.693 Thousand of provision allocated for finalized duty losses is accounted as income in the
account of “Income from Reversal of Unnecessary Provisions” in accordance with Article 17 of the
SDIF’s Accounting Directive.
DRT BAĞIMSIZ DENETİM ve SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş.
Member of DELOITTE TOUCHE TOHMATSU
Sibel Türker
Partner
İstanbul, 13 March 2009
59
2. SAVINGS DEPOSIT INSURANCE FUND BALANCE SHEET (YTL)
Annual Change
A) ASSETS
Liquid Assets
A The Central Bank
B Domestic Banks
C Money in Transit
Marketable Securities
Income Accruals and Rediscounts on Liquid Assets and
Marketable Securities
Short Term Receivables from the Main Activities of the Fund
Prepaid Expenses for Future Months, Income Accruals and
Rediscounts
A Prepaid Expenses for Future Months
B Interest Income Accruals from Rescheduled Loans
C Other Interest Income Accruals and Rediscounts
Non-Performing Loans
A Non-performing Loans Taken Over
B Rescheduled Loans
C Other Non-performing Loans
D Provisions for Non-performing Loans (-)
Other Receivables
Long Term Loans
A Subordinated Loans Granted to Banks
B Loans Granted to Other Subsidiaries
C Loans Granted to Companies whose Management and
Control are Taken Over
Long Term Receivables from the Main Activities of the Fund
A Receivables from Bankruptcy Estates
B Provisions for Receivables from Bankruptcy Estates (-)
Financial Fixed Assets
A Affiliates
B Securities to be held to Maturity
C Provisions for Diminution in Value of Financial Fixed
Assets (-)
Tangible Fixed Assets
A Movables
B Real Estates
C Intangible Assets
D Accumulated Depreciation (-)
Assets to be Disposed off
A Subsidiary Banks to be Disposed of
B Affiliates to be Disposed of
C Other Subsidiaries to be Disposed of
D Tangible Fixed Assets to be Disposed of
E Rights to be Disposed of
F Provision for Impairment of Assets to be Disposed of (-)
Duty Loss Accounts
A Subsidiaries and Affiliates in Liquidation Process
B Provisions for Subsidiaries and Affiliates in Liquidation
Process(-)
C Reserves Given to Subsidiary Banks
D Provisions for Reserves Given to Subsidiary Banks (-)
E Finalized Duty Losses
F Provisions for Finalized Duty Losses (-)
Other Assets
Total Assets
Percentage
(%)
31.12.2008
31.12.2007
Amount
4,590,442,637
980,395
4,588,751,461
710,781
1,816,017,267
3,686,715,576
13,801,697
3,671,041,142
1,872,737
816,460,197
903,727,061
-12,821,302
917,710,319
-1,161,956
999,557,070
25
-93
25
-62
122
324,634,093
84,763,662
239,870,431
283
770,354
591,972
178,382
30
9,834,950
45,880,134
-36,045,184
-79
653,082
8,501,952
679,916
119,012,291
3,472,680,581
1,230,256,463
9,646,518
(4,593,571,271)
57,782,959
8,120,475
0
7,136,093
560,441
43,929,294
1,390,399
2,031,782,267
2,613,942,607
5,266,006,406
7,332,089
(5,855,498,835)
109,111,611
39,923,390
20,000,008
342,094
92,641
-35,427,342
-710,483
-1,912,769,976
858,737,974
-4,035,749,943
2,314,429
1,261,927,564
-51,328,652
-31,802,915
-20,000,008
6,793,999
17
-81
-51
-94
33
-77
32
-22
-47
-80
-100
1.986
984,382
19,581,288
-18,596,906
-95
8,096,094
13,073,741,053
(13,065,644,959)
20,019
20,000
60,819
13,072,575,686
13,072,575,686
0
20,019
20,000
60,819
-13,064,479,592
1,165,367
-13,065,644,959
0
0
0
-100
0
0
0
0
(60,800)
(60,800)
0
0
5,668,871
4,714,285
2,964,193
2,200,234
(4,209,841)
855,432,507
460,522,000
116,958,569
316,354,880
125,461,278
1,798,125
(165,662,345)
476,429,351
492,478,912
5,228,559
3,870,633
2,964,193
1,361,479
(2,967,746)
823,262,786
440,522,000
117,381,928
299,364,576
117,253,183
1,384,828
(152,643,729)
17,409,831,848
500,059,877
440,312
843,652
0
838,755
-1,242,095
32,169,721
20,000,000
-423,359
16,990,304
8,208,095
413,297
-13,018,616
-16,933,402,497
-7,580,965
8
22
0
62
42
4
5
0
6
7
30
9
-97
-2
(16,049,561)
(27,825,149)
11,775,588
-42
10,965,403,921
(10,965,403,921)
0
0
18,913,627
11,072,155,466
7,697,135,025
(1,831,693,371)
18,272,029
-106,751,545
-10,965,403,921
-7,697,135,025
1,831,693,371
641,598
-1
-100
-100
4
8,291,175,495
38,144,419,736
-29,853,244,241
-78
60
B) LIABILITIES
Payables Arising from Fund’s Activities
A Payables to the Residual of Gradual Liquidation Fund
Income Relating to Future Months, Expense Accruals and
Rediscounts
A Other Expense Accruals and Rediscounts
Taxes and Funds Payable
A Taxes and Funds Payable
B Social Security Premiums Payable
Other Payables
A Money to be refunded to Banks
B Payables to Personnel
C Money to be transferred to the Ministry of Finance
D Payables to the Cash Blockages, Provisions and the
Collections waiting for the Set-off
E Other Payables
Other Short Term Liabilities
A Other Short Term Liabilities
31.12.2008
31.12.2007
0
0
223
223
-223
-223
-100
-100
9,527,360
7,689,938
1,837,422
24
9,527,360
820,390
749,864
70,526
3,999,080,604
2,186
169,820
103,509
7,689,938
2,323,321
2,276,216
47,105
2,286,224,364
0
118,273
69,316
1,837,422
-1,502,931
-1,526,352
23,421
1,712,856,240
2,186
51,547
34,193
24
-65
-67
50
75
0
44
49
3,965,446,094
2,264,800,182
1,700,645,912
75
33,358,995
296,176,475
296,176,475
21,236,593
438,602,138
438,602,138
57
-32
-32
0
52,295,240,798
0
44,508,737
8,847,916
35,660,821
52,295,240,798
42,643,275
6,982,454
35,660,821
26,856,003
39,313,540,210
264,801
0
26,591,202
303,000,004
1,332,168
(58,084,117,034)
2,939
69,713,294
(58,153,833,267)
731,637
731,637
61,693,259,151
4,579,158,447
34,730,800,510
3,581,253
1,840,214,697
1,326,168
(51,455,794,344)
2,939
69,713,294
(51,525,510,577)
731,637
731,637
( 6,628,322,689)
12,122,402
-142,425,663
-142,425,663
52,295,240,798
-52,295,240,798
1,865,462
1,865,462
0
39,286,684,207
-4,578,893,646
-34,730,800,510
23,009,949
-1,537,214,693
6,000
-6,628,322,690
0
0
-6,628,322,690
0
0
68,321,581,840
-100
-100
0
-84
0
13
0
0
13
0
0
-1,031
8,291,175,495
38,144,419,736
-29,853,244,241
-78
238,380,721,257
198,666,146,289
39,714,574,968
20
Long Term Advances and Loans
A Long term Loans from the Treasury
Provisions for Debts and Expenses
A Provisions for Retirement Payments to the Personnel
B General Provision for Non-performing Loans
Income Relating to Future Periods, Expense Accruals and
Rediscounts
A Income Relating to Future Periods
B Interest Expense Accruals and Rediscounts
C Other Expense Accruals and Rediscounts
Uncollected Income from Rescheduled Loans
Other Long Term Liabilities
Accumulated Funds
A Banks Liquidation Fund Accumulations
B Trust Fund Accumulations
C Previous Years Income-Expense Differences
Revaluation Surpluses
A Revaluation Surpluses on Subsidiaries and Affiliates
Difference of the Period’s Income and Expense
Total Liabilities
Off-Balance Sheet Accounts
Annual Change
Percentage
Amount
(%)
-100
-100
4
27
0
-100
BALANCE SHEET FOOTNOTES:
(1) Prepaid Expenses for Future Months, Income Accruals and Rediscounts account does not include interest income
accruals and rediscounts regarding Non-performing Loans Taken Over.
(2) The CBRT Foreign Exchange Buying Rate as of December 31, 2008 and December 31, 2007 are used on Balance
Sheet, however for the debts of the SDIF to the Undersecretariat of Treasury the CBRT Foreign Exchange Sale Rate
as of December 31, 2008 and December 31, 2007 were used.
(3) Uncollected Income from Rescheduled Loans refers to the uncollected interest income and income from reversal
of provisions regarding corporate receivables tied to a repayment plan by the Fund.
(4) Risk elements such as total amount of insured deposits and participation funds at banks and amount of lawsuits
against the SDIF that the Fund may be exposed to are tracked in off-balance sheet accounts.
61
3. SAVINGS DEPOSIT INSURANCE FUND INCOME STATEMENT (YTL)
Interest Income
Interest Income from Deposits with the Central Bank
Interest Income from Deposits with Other Banks
Profit Shares from Participation Banks
Interest Income from Domestic Government Bonds
Other Interest Income
Interest Expenses (-)
Interest Expenses on Loans from the Treasury (-)
Non-Interest Income
Revenues from Main Activities of the Fund
Insurance Premium Revenues
Income from Prescribed assets
Fine Income
Interest from Receivables from Bankruptcy Estates
Default Interests
Fees from Bank Share Transfers
Income from Reversal of Unnecessary Provisions
Income from Reversal of Provisions for Impairment of Assets to
be disposed off
Income from Reversal of Provisions for Rescheduled Receivables
Income from Reversal of Provisions for Duty Losses
Income from Reversal of other Unnecessary Provisions
Income from Non-performing Loans
Sale Profit from Assets to be Disposed off
Income and Profits from the Disposed Assets
Income from FX Transactions
Dividend Income from Subsidiaries and Affiliates
Other Ordinary Income and Profit
Extraordinary Income
Previous Years Income and Profit
Income from Cancellation of Debts
Other extraordinary income
Non-Interest Expenses (-)
Personnel expenses (-)
Government Premium Expenses to Social Security Institutions (-)
Expenses for Purchase of Services and Goods (-)
Purchasing of consumption goods and materials (-)
Travelling expenses (-)
Duty expenses (-)
Service purchasing (-)
Representation and Promotion Expenses (-)
Expenses for Purchase, Maintenance and Repair of Movables,
non-material rights (-)
Expenses for Maintenance and Repair of Real Estates (-)
Treatment and Funeral Expenses (-)
Other Provision Expenses (-)
Provision Expense for Reserves given to Subsidiary Banks (-)
Provision Expense for Receivables from Bankruptcy Est. (-)
Provision Expense for Non-Performing Loans (-)
Provision Expense for Duty Losses (-)
Provision Expenses for Aff. and Sub. in Liquidation(-)
Losses from Sales of Assets to be disposed off (-)
Expenses and Losses from Disposed Assets (-)
Depreciation Expenses (-)
Losses from FX Transactions (-)
Current Transfers (-)
Other Ordinary Expenses and Losses (-)
Extraordinary Expenses (-)
Difference of the Period’s Income and Expense
Annual Change
Amount Percent (%)
157,389,538
29
-8,532
-80
-42,541,364
-9
9,385,008
60
190,550,392
482
4,034
109
5,372,060,949
-42
5,372,060,949
-42
83,946,773,759
1.248
84,542,258
13
114,733,927
20
-11,010,100
-39
-506,199
-14
95,081
-13,033,855
-79
-5,736,596
-30
1,643,359,240
419
31.12.2008
701,848,078
2,126
446,754,829
24,983,888
230,099,489
7,746
-7,307,026,126
(7,307,026,126)
90,673,309,461
717,833,887
680,822,021
16,865,413
3,107,196
95,081
3,501,361
13,442,815
2,035,412,918
31.12.2007
544,458,540
10,658
489,296,193
15,598,880
39,549,097
3,712
(12,679,087,075)
(12,679,087,075)
6,726,535,702
633,291,629
566,088,094
27,875,513
3,613,395
0
16,535,216
19,179,411
392,053,678
267,000
0
267,000
-
202,766,207
1,831,693,371
686,340
392,254,780
116,431,493
18,365,103
1,732,589,284
2
6,099,266
85,654,322,728
170,558,622
85,482,456,761
1,307,345
(22,374,872,262)
(27,390,958)
(1,383,939)
(10,756,758)
(2,233,281)
(87,238)
(142,102)
(6,775,414)
(21,736)
391,969,914
83,764
175,973,201
162,670,733
7,230,994
3,691,776,378
533,271
2,191,870
1,660,813,948
1,660,618,546
195,402
(1,220,229,856)
(25,880,558)
(1,286,492)
(10,626,033)
(1,915,806)
(108,976)
(425,626)
(7,321,323)
(127,429)
-189,203,707
1,831,693,371
602,576
216,281,579
-46,239,240
11,134,109
-1,959,187,094
-533,269
3,907,396
83,993,508,780
-1,490,059,924
85,482,456,761
1,111,943
-21,154,642,406
-1,510,400
-97,447
-130,725
-317,475
21,738
283,524
545,909
105,693
-48
719
123
-28
154
-53
-100
178
5.057
-90
0
1.734
6
8
1
17
-20
-67
-7
-83
(327,600)
(234,799)
-92,801
40
(91,099)
(1,078,288)
(19,537,011,959)
(10,965,403,921)
(8,486,405,444)
(85,202,594)
0
0
(558,048)
(2,313,822)
(1,323,815)
(2,487,784,942)
(2,914,078)
(94,252,426)
(209,181,517)
(28,564)
(463,510)
(402,058,028)
(16,293,669)
(384,856,751)
(907,608)
(9,087,886)
(1,409,586)
(1,043,563)
(633,234,445)
(2,861,764)
(87,878,508)
(44,862,993)
-62,535
-614,778
-19,134,953,931
-10,965,403,921
-8,486,405,444
-68,908,925
384,856,751
907,608
8,529,838
-904,236
-280,252
-1,854,550,497
-52,314
-6,373,918
-164,318,524
219
133
4.759
423
-100
-100
-94
64
27
293
2
7
366
61,693,259,151
(6,628,322,689)
68,321,581,840
-1.031
62
4. IMPORTANT DEVELOPMENTS REGARDING THE FINANCIAL
ACCOUNTS OF THE FUND
Long-Term Loans taken from the Treasury
The Law No. 5787, dated July 16, 2008, which amends the Law No. 4749 on “Regulating
Public Finance and Debt Management”, took effect on July 23, 2008, the day it was published in
the Official Gazette Issue No. 26945. Through a provision in the framework article 18 of the Law
No. 5787, Temporary Article 17 was incorporated in to the Law No. 4749. With this article, The
Treasury’s receivables consisting of; principal, interest, expenses, and default fines that has
arisen/will arise from the special issue DGBs given to the Fund before December 31, 2007, were
cancelled without being associated with the income and expense accounts of the budget, by the
Minister of Finance upon the proposal of the Minister. In this respect, YTL 93,292 million of
Treasury receivables were cancelled as of July 23, 2008.
Prior to the cancellation, the debts owed to the Treasury, used to be recorded separately
as principal under the “Long term Loans from the Treasury” account and as interest under the
“Interest Expense Accruals and Rediscounts for Loans from the Treasury” account in the
liabilities section of the Fund’s balance sheet. In this respect, with the cancellation of debts to
the Treasury, the said accounts were closed with a counter entry and consecutively an amount
of YTL 99,292 million was recorded as income under the “Income from Cancellation of Debts”,
which is a sub account under the “Extraordinary Income” account.
Finalized Duty Losses
In line with the provisions of the SDIF Chart of Accounts and Explanations which took
effect with a Fund Board decision on January 1, 2004, YTL 7,697,135,024.67 is credited at
“Finalized Duty Losses” account and deducted from “Income from Cancellation of Debts”
account and the provision made thus far amounting to NTL 1.831.693 Thousand is transferred
to “Income from Reversal of Unnecessary Provisions” account in accordance with the Article 17
of SDIF’s Accounting Directive.
Furthermore, in order to provide a more accurate representation of the financial
situation, with preserving the consistency and comparability of the data presented under
financial statements, the Fund decided to make provisions for doubtful Fund receivables, within
the framework of the Accounting Directive and SDIF Chart of Accounts and Explanations.
Reserves given to Subsidiary Banks
As the collection of the reserves given to the Banks which were taken over by the Fund
and merged under Birleşik Fon Bankası depends on the resolution performance of the said bank
and as the determination of the amount to be collected in the future is not possible, “Provisions
for Reserves Given to Subsidiary Banks” account was opened and a provision for all the balance
of “Reserves given to Subsidiary Banks” account amounting to YTL 10,965,403,921.28 was
made.
Receivables from Bankruptcy Estates
It is concluded that the Bankrupt İmar Bankası can not make any repayments to the
Fund, from the amounts collected from the tender sales of the commercial and economic
integrities or from the separate sales made through execution proceedings, within the framework
of the sequence of payments to creditors as the current situation and regulations are taken into
account. Therefore, a provision was made for all Fund’s receivables from Imar Bankası
bankruptcy estate amounting to YTL 13,065,644,958.81, which is followed under the
“Receivables from Bankruptcy Estates” account on the asset side of the Fund’s balance sheet.
Furthermore, a portion amounting to YTL 4,579,239,515,03 of the “Income relating to Future
Periods ” account on the liability side of the Fund’s balance sheet, under which interest and
other receivables that had not been associated with income/expense accounts in the related
term were recorded, was deducted from the “Other Provision Expenses” account and the entry
was closed.
63

savings deposit insurance fund annual report

Transcription

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