γλώσσες
Σελίδες
Νομικός
∞nnual Report 2007
∞nnual Report 2007
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Tekfen Bank Factoring
Bulgaria Branch
Northern Greece Branch
Head Office
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Contents
About usShareholdersPartners 4
μoard of Directors 6
Management - Members of the Executive Committee 7
Eurobank Factors’ Highlights 8
Products 9
Greek Factoring Market 10
Eurobank Factors Performance 2007 11GreeceBulgaria
Financial Statements 12
Auditor’s Report 47
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About us
EFG Factors is established in 1999 in Athens, Greece and is one of the leading companies in the area of Domestic and InternationalFactoring in Greece. The company’s share in Greek Factoring market (Domestic and International) rose to 30% for 2007, whileits share in the International Factoring market exceeded 46% (57% Export and 45% Import Factoring).
Moreover, EFG Factors is the sector leader in terms of assets.
ShareholdersThe company is 100% subsidiary of Eurobank EFG (www.eurobank.gr) - one of the largest banking and financial institutions inGreece, listed in the Athens Stock Exchange.
Group’s assets amount to ú68 billion and regulatory capital stands at ú5.7 billion. Overall, the network has more than 1.500 units(branches, business centers and points of sale) in Greece and abroad, with a workforce in excess of 22.000.
Eurobank EFG Group has strong presence in the Bulgarian, Romanian, Serbian, Polish, Turkish, Ukrainian and Cypriot marketswith subsidiary banks. More specifically, overseas network comprises of 963 units with approximately 12.000 employees.
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The main shareholder (41.50%) of Eurobank EFG is EFG Group, Geneva (www.efggroup.com) - a worldwide banking and financialinstitution with presence in Europe, Middle and Far East and Americas and is listed in the Swiss Stock Exchange SWX.
PartnersEurobank Factors is a member of Factors Chain International (www.factors-chain.gr) - the largest global association of more than200 leading factoring companies from more than 60 countries. The company is also a member of International ForfaitingAssociation (http://forfaiters.org/) - an organization that develops and coordinates forfaiting activities between financial andbanking institutions on a global scale.
Member of International Forfaiting Association Member of Factors Chain International
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Board of Directors
1. George Marinos, President
2. Panagiotis Mantas, Vice President
3. Christos Adam, Member
4. Nikolaos Aliprantis, Member
5. Andreas Chasapis, Member
6. Constantin Couroussis, Member
7. George Karagiannopoulos, Member
8. Evaggelos Kavvalos, Member
George KaragiannopoulosGeneral Manager
Tel.: +30 210-6078 [email protected]
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Management Members of the Executive Committee
Constantin CouroussisDeputy General ManagerFinance, Administration & Control
Tel.: +30 210-6078 [email protected]
Socratis TsigarasClient Relations Manager
Tel.: +30-210 [email protected]
Athanasios NtaflosChief Information Officer
Tel.: +30-210 [email protected]
Zoe SpyridakiCredit Risk Manager
Tel.: +30-210 6078 [email protected]
Spyros TsolisInternational Factoring & Forfaiting Manager
Tel.: +30-210 [email protected]
Charalampos KanaloupitisDeputy General ManagerBusiness Development
Tel.:+30-210 [email protected]
Yannis KoutsoubosDeputy Business Development ManagerNorthern Greece Branch Manager
Tel.: +30-2310 [email protected]
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EFG Factors’ Highlights (in '000 ú)
1.635.443
2006 2007 2006 2007
Purchased A/Rs
2.023.593
4.364
Profits after tax
5.674
24% 30%
Key financial Highlights
In ‘000ú Year End 2007/2006
Income (Commission & Interest rate) 11.061/9.849 = +12.31%
Net Profit Before Taxes: 7.605/6.417 = +18.52%
Personnel Expenses / Net Profit Before Taxes 45.43%
Forfaiting performance (Gross Returns) 1.396/727 = +92.03%
7.411
2006 2007
μulgaria
16.015
116%
178.513
2006 2007
International Factoring
359.251
102%
489.923
2006 2007
Outstanding 31.12.2007
546.662
12%
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Products
Domestic Factoring with recourse
Domestic Factoring without recourse
Export Factoring with recourse
Export Factoring without recourse
Invoice Discounting with
or/and without recourse
Reverse Factoring
Back to Back Factoring
Import Factoring
ª∂LLON Pay (e-Reverse factoring)
Forfaiting
Collection and financing A/Rs
from State-Owned Hospitals
Collection only
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According to FCI, the total Turnover of the Greek factoring industry in 2007 reached the amount of ú7.4 billion, a figure thatmirrored a 42% increase, compared to 2006 (ú5.2 billion).
During 2007, Domestic factoring activity grew by 35% against 2006 representing 88% of the total factored Turnover. In additionto this, International factoring is gradually gaining pace, representing approximately 12% of the total factored turnover, realizingan impressive 114% growth from 2006. This growth has been mirrored in the 2007 Factors Chain International (FCI) statisticsregarding the countries ranking for export and import factoring business, in which Greece was placed in the 9th and 17th positionamong 60 countries (see figure 2).
Greek Factoring Market
Figure 1: Greek Factoring market 2000-2007 (source: FCI Annual Report 2007)
1.500
2000 2001 2002 2003 2004 2005 2006 2007
2.0502.694
3.6804.430 4.510
5.230
7.420
Figure 2: International Factoring - Countries ranking (source: FCI Annual Report 2007)
Country Ranking Export
Taiwan 1
France 2
Turkey 3
China 4
Hong Kong 5
Norway 6
Spain 7
Japan 8
Greece 9
Country Ranking Import
U.S.A. 1
U.K. 2
Italy 3
Spain 4
Germany 5
… …
Austria 16
Greece 17
Poland 18
Eurobank Factors Performance 2007
GreeceEurobank Factors’ turnover went up to ú2.024 mio, increasingby 24% compared to 2006 (ú1.635 mio).
A market share close to 30% was accomplished in thedomestic market. Respectively, international factoring marketshare reached 46%.
Eurobank Factors developed a unique factoring softwaresystem, N-Factors to pursue excellence in service quality andcustomer satisfaction.
Exploitation of new business opportunities where the Group hasactive presence i.e. Cyprus, Romania, Turkey (Tekfenbank).
Eurobank Factors as a member of IFA (International ForfaitingAssociation), executed succesful forfaiting deals in theprimary and secondary market, financing more than ú35 mio.
For the year 2006, Eurobank factors was ranked by FCI as the 5th Best Factor in Europe and 9th Best in the Worldregarding product know-how, business communication,quality of services and overall performance.
Further strengthening of the Bulgarian branch by launchingdomestic factoring services.
BulgariaIn the Bulgarian market, factoring services are still considerednew financial services in the country and the market is estimatedto be in the introductory stage but with great potentialconsidering the high inter-firms indebtedness and the wideradoption of open account sales terms.
EFG Factors S.A. Branch Bulgaria reached ú16 million represe-nting a 116% increase, compared to ú7.4 million in 2006.
Becoming one of the first factoring companies member of FCI(Factors Chain International), the company gained thecompetitive advantage to offer full International Factoringservices.
Contribution by product
2% Import Factoring
29%Recourse Factoring
8% Collections
9%Invoice Discounting
16%Export Factoring
36%Non-RecourseFactoring
9.27%Direct Export
15.48%Direct Import
5.99%2-Factors Import
69.26%2-Factors Export
Contribution by product
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EFG FACTORS SASA. REG. No. 44428/01∞Δ/μ/99/39/03
Financial Statements for the year ended December 31st, 2007
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Contents
Director’s Report 14
Income statement 16
Balance Sheet 17
Statement of changes in equity 18
Cash flow statement 19
1 General Information 20
2 Summary of significant accounting policies 20
3 Financial Risk Management 25
3.1 Credit Risk 25
3.2 Market Risk 28
3.2.1 Currency Risk 28
3.2.2 Interest Rate Risk 30
3.2.3 Liquidity Risk 31
3.3 Capital adequity 32
4 Critical accounting estimates and assumptions 33
5 Net interest income 33
6 Net commission income 34
7 Other income 34
8 Payroll and Staff Costs 34
9 Administrative expenses 35
10 Impairment of trade receivables 35
11 Income tax expense 35
12 Cash and Cash Equivalents 36
13 Advances to customers 36
14 Intangible assets 37
15 Property, plant and equipment 38
16 Deferred income tax Assets-Liabilities 39
17 Other Assets 39
18 Due to banks 40
19 Due to customers 40
20 Corporate Bonds 40
21 Financial derivative instruments 42
22 Current income tax liabilities 42
23 Retirement benefit obligations 42
24 Other liabilities 42
25 Share Capital 43
26 Statutory Reserve 43
27 Retained earnings 43
28 Operational Lease Commitments 43
29 Related party transactions 44
30 Contingent Liabilities 46
31 Events after the balance sheet date 46
Auditor’s report 47
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DIRECTORS’ REPORT FOR THE YEAR 2007 FOR THE SOCIETE ANONYME EFG FACTORS SA
TO THE ANNUAL GENERAL ASSEMBLYOF THE SHAREHOLDERS OF “EFG FACTORS SA”
Ladies and Gentlemen,
We hereby present information concerning the company’s activity during the financial year 2007.
FINANCIAL CONDITION OF THE COMPANYThis is the eighth consecutive financial year for the company and includes the period from January 1st, 2007 to December 31st,2007.
The financial statements for the aforementioned year that are published and submitted to the General Assembly have beenprepared in accordance with the International Financial Reporting Standards. Detailed information about the principal accountingpolicies pursued is presented in the Notes to the Financial Statements as per December 31st, 2007. The Company’s Board ofDirectors authorized these financial statements for issue on March 31th, 2008.
The Board of Directors announces the following:
The financial year 01.01.07-31.12.07 closed with significant positive results and further growth prospects. Factoring turnoveramounted to ú2.023.593 thousand, as compared to ú1.635.443 thousand in the previous year, registering at 24% increase.
Net profits before taxes rose to ú7.605 thousand from ú6.417 thousand in 2006 (increased by 18.52%).
The company’s share in the Greek Factoring market (Domestic and International) remained approximately 30% in 2007, while itsshare in the International Factoring market, in particular, exceeded 46% (56.64% import and 45.18% export factoring) accordingto the official records of FCI with total International turnover of ú359.251 thousand.
Since March 2007, EFG Factors presence through the Bulgaria Branch, strengthened even more in the Bulgarian market, replacingthe Representation Office that was in operation since 2004. The new Branch, is established as an independent commercial entity,offering the full range of Factoring services in International market and Domestic market in Bulgaria, in cooperation with BulgarianPostbank A.D., expanding the Bank’s portfolio and enhancing the overall presence of the Group in Bulgaria.
The company’s success has resulted from the coordinated utilization of its human resources, the excellent collaboration with thecorporate sector of the parent Bank, and the special attention provided to our clientele offering quality-factoring services, designedto meet their financial needs for commercial solutions.
On 31.12.07 the company employed 58 people in Greece and 10 people at its office in Sofia, Bulgaria (2006: Greece 61 prs,Bulgaria 10 prs.)
F i n a n c i a l S t a t e m e n t s f o r t h e y e a r 2 0 0 7
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MAJOR EVENTSThe completed ERP information program N-Factor, was chosen by Eurobank Tekfen Bank in order to service the Factoringoperations in Turkey. The installation was completed successfully in December and from January 2008 the information programis fully operational.
In combination with N-Factor, the client-oriented Factoring CRM system was also installed after making the appropriateadjustments that operates fully with N-Factor and provides operational tools for the Factoring clients.
Moreover, the cooperation between Business Exchange and EFG Factors was completed successfully for the implementation ofnew Factoring services in Greece.
OUTLOOKThe company will continue to upgrade its Factoring services, capturing a larger share of client and customer services through theprovision of quality financial and commercial outsourcing services.
The research has already started by 2007 and during 2008 EFG Factors will be in position to provide on-line Factoring servicesto its customers. The company’s ERP system N-Factor is ready to provide real-time information and services through the Internet.
Moreover, it will optimise client and customer risk analyses, with the use of new software that enables the more preciseidentification of business risks, by analysing a combination of parameters, such as customer-client relationships, productcombinations, risk reinsurance, sector risks etc.
The company possesses and will sustain its leading role in the formation of a new Factoring market in Bulgaria and will developnew operations in other Balkan countries, giving presence to Romania.
The research for the installation of the software N-Factor and Factoring CRM has already started in Romania so as to support theFactoring operations there.
Finally, you should be informed that the company does not hold any securities, maintains no foreign currency deposits and doesnot own any real property. Furthermore, from the end of the financial year and till this date no events have occurred that wouldalter the financial position of the company, or would dictate any readjustment of Balance Sheet items.
Given this report, and the financial statements before you, you are kindly asked to decide on the issues comprising the agenda ofthis General Assembly.
Concluding our report, we consider necessary to thank all the employees for their contribution to the company’s success.
Ag. Paraskevi, March 31th, 2008
THE CHAIRMAN OF THE BOARD THE GENERAL MANAGER& BOARD MEMBER
GEORGE MARINOS GEORGE KARAGIANNOPOULOS
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F i n a n c i a l S t a t e m e n t s f o r t h e y e a r 2 0 0 7
EFG FACTORS SAIncome statement8th Fiscal Year (January 1st - December 31st, 2007)
(Amounts in ú) Year ended December 31st
Note 2007 2006
Interest and related income 5 21,476,426.45 14,081,357.80
Interest and related expenses 5 (14,888,632.75) (9,156,490.07)
Net interest income 6,587,793.70 4,924,867.73
Commission income 6 5,829,481.84 5,765,991.51
Commission expense 6 (1,486,188.94) (936,008.61)
Net commission income 4,343,292.90 4,829,982.90
Other income (expenses) 7 130,097.17 93,668.24
Total income 11,061,183.77 9,848,518.87
Impairment of trade receivables 10 (66,192.13) (196,585.88)
Payroll and Staff Costs 8 (2,578,086.84) (2,219,738.11)
Administrative expenses 9 (704,934.99) (916,486.30)
Depreciation 14,15 (106,248.36) (98,378.98)
Total expenses (3,389,270.19) (3,234,603.39)
Profit before tax 7,605,721.45 6,417,329.60
Income tax expense 11 (1,931,196.21) (2,052,878.47)
Net profit after tax 5,674,525.24 4,364,451.13
Ag. Paraskevi, March 31th, 2008
THE CHAIRMAN THE GENERAL MANAGER THE CHIEF FINANCIALOF THE BOARD OFFICER
GEORGE MARINOS GEORGE KARAGIANNOPOULOS CONSTANTIN COUROUSSIS
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EFG FACTORS SABalance Sheet at December 31st, 20078th Fiscal Year (January 1st - December 31st, 2007)
(Amounts in ú)
Note 31.12.2007 31.12.2006
ASSETS
Cash and cash equivalents 12 521.99 1,106.59
Receivables from banks 12 2,258,898.59 2,685,399.35
Advances to customers 13 546,661,666.61 489,922,821.64
Intangible assets 14 40,725.94 46,023.18
Property, plant and equipment 15 407,629.03 441,159.93
Financial derivative instruments 21 5,435.94 41,427.29
Deferred income tax assets 16 109,766.95
Other assets 17 149,976.12 76,156.58
Total Assets 549,634,621.17 493,214,094.56
LIABILITIES
Amounts due to banks 18 65,113,227.58 164,437,113.62
Amounts due to clients 19 3,108,566.13 1,334,008.33
Corporate Bonds 20 435,966,854.33 294,352,813.89
Income tax liabilities 22 748,728.64 644,489.22
Retirement benefit obligations 23 58,448.00 50,530.00
Deferred income tax liabilities 16 1,358.98 4,094.00
Other liabilities 24 2,439,731.30 2,195,864.53
Total liabilities 507,436,914.96 463,018,913.59
EQUITY
Share Capital 25 20,700,000.00 13,500,000.00
Share premium 25 4,228,000.00 1,500,000.00
Statutory reserve 26 1,140,155.69 849,545.89
Retained earnings 27 16,129,550.52 14,345,635.08
Total equity 42,197,706.21 30,195,180,97
Total equity and liabilities 549,634,621.17 493,214,094.56
Ag. Paraskevi, March 31th, 2008
THE CHAIRMAN THE GENERAL MANAGER THE CHIEF FINANCIALOF THE BOARD OFFICER
GEORGE MARINOS GEORGE KARAGIANNOPOULOS CONSTANTIN COUROUSSIS
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F i n a n c i a l S t a t e m e n t s f o r t h e y e a r 2 0 0 7
EFG FACTORS SAStatement of changes in equity
(Amounts in ú)
Share Share Statutory Retained TotalCapital premium reserve Earnings
Balance at 01.01.2006 13,500,000.00 1,500,000.00 615,683.48 10,215,046.36 25,830,729.84
Result for the year 4,364,451.13 4,364,451.13
Statutory reserve 233,862.41 (233,862.41) 0.00
Balance at 31.12.2006 13,500,000.00 1,500,000.00 849,545.89 14,345,635.08 30,195,180.97
Balance at 01.01.2007 13,500,000.00 1,500,000.00 849,545.89 14,345,635.08 30,195,180.97
Dividend paid (3,600,000.00) (3,600,000.00)
Capital increase 21/12 7,200,000.00 2,800,000.00 10,000,000.00
Capital increase expenses (72,000.00) (72,000.00)
Result for the year 5,674,525.24 5,674,525.24
Statutory reserve 290,609.80 (290,609.80) 0.00
Balance at 31.12.2007 20,700,000.00 4,228,000.00 1,140,155.69 16,129,550.52 42,197,706.21
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EFG FACTORS SACash flow statementfor the period January 1st – December 31st, 2007
(Amounts in ú)
Note 31.12.2007 31.12.2006
Cash Flows from Operating Activities
Profit before tax 7,605,721.45 6,417,329.60
Adjustments for:
Interest expense for the year 14,888,632.75 9,156,490.07
Depreciation 14,15 106,248.36 98,378.98
Provisions 10,23 74,110.13 201,510.88
Other non-cash expense (income) (5,543.74) (131,281.33)
Operating profit before changes in Working Capital 22,669,168.95 15,742,428.20
Decrease (increase) in receivables (56,856,239.33) (102,183,577.87)
Decrease (increase) in liabilities 2,018,424.57 1,152,500.00
Interest paid (16,143,532.08) (7,678,692.30)
Income tax paid (1,922,187.95) (2,311,436.34)
Net Cash Generated from Operating Activities (50,234,365.84) (95,278,778.31)
Cash flows from investing activities
Purchases of property, plant and equipment 14,15 (67,420.22) (96,323.87)
Net Cash generated from investing activities (67,420.22) (96,323.87)
Cash flows from financing activities
Corporate bonds 613,142,241.19 253,650,000.00
Repayment of corporate bonds (470,954,489.40) (130,000,000.00)
Dividends Paid (3,600,000.00)
Funds drawn from banks (98,641,051.09) (28,503,355.31)
Share capital increase
Net Cash generated from financing activities 49,874,700.70 95,146,644.69
Net increase (decrease) in cash and cash equivalents (427,085.36) (228,457.49)
Cash and cash equivalents at beginning of the year 12 2,686,505.94 2,914,963.43
Cash and cash equivalents at end of the year 12 2,259,450.58 2,686,505.94
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F i n a n c i a l S t a t e m e n t s f o r t h e y e a r 2 0 0 7
1. General InformationThe company was established on November 18th 1999 under the name EFG FACTORS FACTORING SA and the trade name EFGFACTORS.
The company is headquartered in Ag. Paraskevi, at number 3 Kapodistriou Street, and has been entered in the Sociétés AnonymesRegister under number 44428/01∞Δ/μ/99/39/03.
The duration of the company is ninety-nine years, starting from the date the administrative decision approving its establishmentwas officially entered in the Companies Register.
The company’s duration can be extended, or shortened, by a decision from the General Assembly.
The sole purpose of the Company is to conduct factoring operations, in accordance with the provisions of Law 1905/1990, ascurrently in force, and, in general, all the operations factoring companies are legally allowed to perform, and more specifically:
a) The legal and/or accounting control of, existing or future, third party accounts receivable, in Greece and abroad.
b) The collection of third party accounts receivable, both in Greece and abroad, by authorization from, or on behalf of, thethird party beneficiaries.
c) The assumption of third party accounts receivable upon either payment on maturity, or discounting, with or without recourse.
d) The management of third party accounts receivable and the total, or partial, coverage of the credit risk involved.
The company is wholly owned by the EFG EUROBANK ERGASIAS Group.
The Board of Directors has eight members, appointed for a term of three years, starting from the date of the General Assembly thatelected the Board, April 23th, 2007, and ending with the election of a new Board of Directors by the General Assembly that willconvened three (3) years later. The Company’s Board of Directors authorized these financial statements for issue on March 31th, 2008.
2. Summary of significant accounting policiesThe principal accounting policies applied in the preparation of these financial statements are set out below. These policies havebeen consistently applied to all the fiscal years presented, unless otherwise stated.
2.1 Basis of preparationThe financial statements have been prepared by the management in accordance with the International Financial ReportingStandards (IFRS) and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC), as adopted bythe European Union and the IFRS issued by the International Accounting Standards Board (IASB).
The following policies have been consistently applied to all the fiscal years, with the exception of the cases concerning theclassification and measurement of derivative financial products. Whenever deemed necessary, comparative data have beenadjusted in order to comply with the changes in presentation adopted by the Group for this year.
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of derivativefinancial instruments at fair value.
The preparation of financial statements in conformity with IFRS requires the adoption of certain critical accounting estimates andassumptions. It also requires management to exercise its judgment in the process of applying the company’s accounting policies.The areas involving a higher degree of judgment, or areas where assumptions and estimates are significant to the financialstatements, are disclosed in Note 4.
The financial statements are prepared in Euro (ú), the company’s base currency.
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2.2 Offsetting of financial instrumentsFinancial assets and liabilities are offset and the net amount is reported in the balance sheet, when there is a legally enforceableright to offset recognized amounts and there is an intention to settle on a net basis.
2.3 Foreign currency transactionsAssets and liabilities denominated in foreign currency are translated into Euros using the exchange rates prevailing at the balancesheet date, and any foreign exchange gains of losses are recognized in the income statement.
Foreign currency transactions are recorded using the exchange rates prevailing at the dates of the transactions. All foreignexchange gains or losses are recorded in the income statement.
2.4 Cash and cash equivalentsCash and cash equivalents include cash in hand, deposits held at call with banks, and other short-term highly liquid and low riskinvestments with original maturities of three months or less.
2.5 Property, plant and equipmentAll property, plant and equipment is stated at historical cost less accumulated depreciation and any impairment losses. Plant andequipment are periodically reviewed for impairment, and any impairment loss is directly recognized in the income statement.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it isprobable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measuredreliably. Repairs and maintenance are charged to the income statement during the financial period in which they are incurred.
Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, as follows:
ñ Improvements of third party property: over the duration of the lease contract or the estimated useful life, whichever is theshortest;
ñ Computers and software: 3-5 years;
ñ Furniture, fittings and equipment: 6-7 years;
ñ Vehicles: 5 years.
2.6 Intangible assetsCosts associated with the in-house maintenance of computer software programmes are recognized as an expense as incurred.Costs that are directly associated with the development of identifiable and unique software products controlled by the Company,and that will probably generate economic benefits exceeding costs beyond one year, are recognized as intangible assets, and areamortized over their estimated useful lives. Computer software is amortized in 3-4 years.
2.7 Financial Assets(i) Factoring advancesThe company pays money to its clients in advance, offering management services that emanate from the factoring agreementssigned with them.
The company also discounts trading securities deriving from signed Forfaiting agreements obtained for indefinite time periods,which can be sold due to cash flow shortages or due to interest or exchange rates changes, in order to maximize returns.
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(ii) Accounting treatment and calculationThe purchases and sales of financial assets are carried using the effective interest method at fair value through profit and loss.The securities are recognized on the trade date, i.e. the date that the company commits to purchase or sell the asset.
Advances are recognized whenever cash is disbursed to the beneficiaries of such credit.
Financial assets that are not presented at fair value through profit and loss are initially recognized at fair value. Financial assetsare derecognized when the rights to receive cash flows from them have been executed, or when the company has transferredsubstantially all the risks and rewards of the assets.
2.8 Impairment of financial assetsThe company assesses at each balance date whether there is any objective evidence that a financial asset or a group of financialassets is impaired. A financial asset or a group of financial assets is impaired only, and only, when there is objective evidence ofimpairment as a result if one, or more, events that occurred after the initial recognition of the asset (“harmful event”) and thisevent (or these events) affects the expected future cash flows from the financial asset or group of financial assets and can becalculated reliably. The objective evidence that an impairment loss on a financial asset or a group of financial assets has beenincurred include the data coming in to the company’s attention regarding the following events:
a) Significant financial difficulty of the debtor;
b) Breach of agreement, such as default, or delinquency in the payments of interest or capital;
c) For financial or legal reasons related to the financial difficulty of the debtor, the company is offering a settlement that itwould not offer under different conditions;
d) There is probability that the debtor will enter bankruptcy or financial reorganisation;
e) There is evidence that indicate a measurable reduction of the future cash flows from a group of financial assets,subsequent to their initial recognition, even if the reduction can not be connected to specific evidence, such as:ñ Deterioration of the payment status of the debtors of the group of financial assets;ñ National, or local, financial conditions that are related to delinquencies in the servicing of the group of financial assets.
f) If there is objective evidence that an impairment loss on factoring advances has been incurred, the amount of the loss ismeasured as the difference between the asset’s carrying amount and the present value of estimated future cash flows(excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate.The carrying amount of the asset is reduced through use of an allowance account, and the amount of the impairment lossis recognized in the income statement. If the factoring advances bear a floating interest rate, then the discount rate for thecalculation of the impairment loss is the current effective interest rate defined in the agreement.
2.9 BorrowingsBorrowings are initially recognized at fair value, which is determined by the proceeds, including transaction costs. Borrowings aresubsequently stated at amortized cost and the difference between the proceeds and the redemption value is recognized in theincome statement over the period of the borrowings, using the effective interest method.
2.10 Derivative financial instruments that do not qualify for hedge accounting Derivative financial instruments are initially recognized at fair value on the date a derivative contract is entered into and aresubsequently re-measured at their fair value. The fair value is their market price, taking into consideration recent markettransactions, while in the cases there is no market price, the fair value is calculated using discounted cash flow models. Whenthe fair value is positive the derivatives are recognized as assets, while when the fair value is negative they are recognized asliabilities.
F i n a n c i a l S t a t e m e n t s f o r t h e y e a r 2 0 0 7
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Gains and losses resulting from changes in the fair value of derivatives are recognized in the income statement of the fiscal periodin which they are incurred.
2.11 LeasesLease accounting when the company is the lesseeLeases of assets under which the lessor effectively retains the risks and rewards of ownership are classified as operating leases.Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease.
2.12 Deferred Income taxDeferred income tax is calculated using the liability method, on all temporary differences arising between the tax bases of assetsand liabilities and their carrying amounts in the financial statements.
Deferred income tax is determined using tax rates that have been enacted or substantially enacted by the balance sheet date andare expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognized to the extent that it is probable that future taxable profits will be available, against whichthe temporary differences can be utilised.
Income tax on profits is calculated in accordance with the tax laws enacted in the country that the company conducts itsoperations, and is debited or credited in the income statement, unless it concerns items directly debited or credited to equity, inwhich case deferred income tax is directly accounted for in equity.
2.13 Interest income and expenseInterest income and expense is recognized in the income statement on an accrual basis for all interest-bearing instruments, usingthe effective interest method. The effective interest rate is the one that discounts exactly the estimated future cash inflows oroutflows during the estimated life of the financial instrument or, whenever deemed appropriate, during a shorter period, on thebasis of the net carrying value of the financial asset or liability. In order to calculate the effective rate, cash flow estimation takesinto account the terms of the financial instrument agreement, albeit not any contingent credit risk losses.
The calculation includes the fees and basis points paid or collected by the counterparties to the agreement that constitute anintegral part of the effective interest rate, transaction costs and other premiums and discounts.
Whenever a financial asset or a group of similar financial assets is impaired, interest income is recognized using the rate thatdiscounts future cash flow for the purposes of calculating the impairment loss.
2.14 Fees and commissionsIn general, fees and commissions are recognized on an accrual basis. Fees and commissions concerning transactions withoverseas Factors, transfer charges and banking expenses are recognized upon completion of the relevant transaction and thedispatch of the debit note.
2.15 ProvisionsProvisions are recognized when the Company has a present legal or constructive obligation as a result of past events and it isprobable that an outflow of resources will be required to settle the obligation, the amount of which can been reliably estimated.
Provisions are reviewed prior to the preparation of the financial statements, in order to reflect optimum current estimates.Contingent liabilities that may not possibly incur cash outflows are also disclosed, unless they are immaterial. Contingent claimsare not recognized in the financial statements, albeit are disclosed if the inflow of financial gains is possible.
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2.16 Employee benefits(i) Pension obligationsThe Company participates in defined contribution pension schemes, under which it pays fixed contributions to social securityfunds. The company has no other pension obligations, apart from its contributions to the funds. The company’s payments to thedefined contribution pension plans are recognized as employee benefit expense for the period they concern.
(ii) Termination benefitsAccording to Greek labor law, employees that remain in service up to the usual retirement age are entitled to a lump-sum payment,which is estimated on the basis of their years of service and their earnings upon the retirement date. A provision has been madefor the actuarial value of this lump-sum payment, using the projected unit credit method. In accordance with this method, theretirement benefit cost is recognized in the income statement during the employees service, based on the actuarial assessmentsperformed each year. The retirement benefit obligation is calculated as the present value of the estimated future cash outflowsusing interest rates of state bonds that have terms to maturity approximating the terms of the related liability. Actuarial gains orlosses arising from the calculation of the retirement benefit are recognized directly in the income statement.
(iii) Profit-sharing and bonus plansPeriodically, the Company offers cash bonuses to reward highly performing employees ad lib. Cash bonuses, which have to beauthorised only by the Management, are recognized as accrued staff costs. Profit sharing, which must be authorised by theGeneral Assembly, is recognized as a staff expense for the fiscal year approved by the company’s shareholders.
2.17 Share Capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shownin equity as a deduction, net of tax, from the proceeds.
2.18 Related party transactionsRelated parties include the parent Bank, as well as the affiliated, and associated companies of the Parent Bank’s group. Alltransactions performed with related parties fall under the usual course of operations and are executed under strictly commercialterms.
2.19 Comparative dataThe comparative data, where necessary, have been readjusted so that they are consistent with the changes in the presentationadopted by the company for the current use.
2.20 New IFRS and interpretations (IFRIC interpretations)a) Revised, new standards and interpretations that are in effect since January 1st, 2007The enforcement of the revised, new standards and interpretations didn’t cause very important changes in the Group’s accountingprinciples:
ñ IFRS 7, Financial instruments: Disclosures
ñ IAS 1, Amendment - Capital Disclosures
ñ IFRS 4, Amended Instructions for the implementation of IFRS 4, Insurance Agreements
ñ IFRIC 8, Scope of IFRS 2
ñ IFRIC 9, Reassessment of Embedded Derivatives
ñ IFRIC 10, Interim Financial Reporting and Impairment
F i n a n c i a l S t a t e m e n t s f o r t h e y e a r 2 0 0 7
25
b) Standards and interpretations that have been published but are not yet effective:The standards mentioned below and the interpretations that have been published but are not yet effective for the fiscal year thatbegins on January 1st, 2007, have not been in effect for any previous fiscal period:
ñ IAS 1, Presentation of Financial Reporting (in effect from January 1st, 2009)
ñ IAS 23, Borrowing Costs (in effect from January 1st, 2009)
ñ IFRS 8, Operating Segments (in effect from January 1st, 2009)
ñ IFRIC 11, IFRS 2, Group and Treasury Share Transactions (effective for annual periods beginning on or after 1 March 2007)
ñ IFRIC 13, Customer Loyalty Programmes Transactions (effective for annual periods beginning on or after 1 July 2008)
ñ IFRIC 14, IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction Costs (ineffect from January 1st, 2008)
The implementation of the aforementioned standards and interpretations is not expected to have any significant affect on thecompany’s Financial Statements at the period of their first implementation.
3. Financial Risk ManagementThe Company is exposed to various financial risks such as credit risk, liquidity risk, currency risk and cash flow interest rate risk.
Risk management is carried out by the Company’s Management, with the support of specific departments of the parent company,EFG EUROBANK ERGASIAS SA.
3.1 Credit RiskThe Company is exposed to credit risk when a counter party is unable to pay amounts in full when due, either as a debtor(customer of the seller) or as the recipient of an advance against the sale of the accounts receivable (seller).
The Company structures the levels of acceptable credit risk based on the financial analysis of the borrower or the group ofborrowers, their industry, their position in the market and the dispersion of their credit risks.
Factoring services in terms of risk are classified to:
1) Recourse Factoring, 2) Non-recourse factoring, 3) Collection Factoring Only.
The right of recourse that allows the Factoring company to go back to the seller (borrower) to collect its claims, mitigates thecredit risk it assumes against the debtor.
The provision of non-recourse factoring services implies that the credit risk is entirely borne by the Factoring company in casethe debtor (customer) becomes insolvent.
In order to provide non-recourse factoring services, EFG FACTORS performs due diligence on the debtor’s (customer’s)creditworthiness, the debtor’s commercial transactions for a long time period, evaluates the debtor’s position in the market, thecommercial peculiarities of the debtor’s products or services and accordingly accepts (or rejects) the provision of the Services,setting a specific credit limit for the debtor.
On December 31st, the company’s claims from advances extended for non-recourse factoring services amounted toú328.756.076,63, which accounted for 60% of the total advances extended in 2007, and 291.276.475,51 or 59% of the totaladvances extended in 2006, respectively.
If EFG FACTORS judges that there is even a slight possibility of future debtor insolvency, it obtains insurance coverage for thecredit risk arising from the assigned assets of non-recourse factoring services. Risk concentration relating to individual clientsdoes not exceed 10% of total receivables.
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EFG FACTORS reviews regularly the credit and financing limits it has approved on the basis of the creditworthiness of the clientand the client’s debtors, in order to establish and ascertain that these limits are appropriate for the client’s requirements and thelimits of the client’s credit rating.
Assets underlie credit riskDecember 31st 2007
On balance sheet items underlie credit risk Receivables from banks Advances to customers
Receivables neither past due nor impaired 2,258,898.59 544,612,494.93
Receivables past due but not impaired 0.00 0.00
Receivables past due and impaired 0.00 4,535,439.15
Total 2,258,898.59 549,147,934.08
Less: Provisions on impaired assets 0.00 (2,486,267.47)
Total 2,258,898.59 546,661,666.61
December 31st 2006
On balance sheet items underlie credit risk Receivables from banks Advances to customers
Receivables neither past due nor impaired 2,685,399.35 488,461,537.84
Receivables past due but not impaired 0.00 0.00
Receivables past due and impaired 0.00 4,132,670.06
Total 2,685,399.35 492,594,207.90
Less: Provisions on impaired assets 0.00 (2,671,386.26)
Total 2,685,399.35 489,922,821.64
(a) Receivables neither past due nor impaired
The credit rating of the portfolio that is not past due or impaired on 31 December 2007 and 2006 can be evaluated based on thecredit rating of the Group. The following information is based on this system.
December 31st 2007
Credit risk evaluation Receivables from banks Advances to customers
Acceptable risk 2,258,898.59 544,421,889.26
Watching list - follow-up 190,605.67
Total 2,258,898.59 544,612,494.93
December 31st 2006
Credit risk evaluation Receivables from banks Advances to customers
Acceptable risk 2,685,399.35 487,861,745.87
Watching list - follow-up 0.00 599,791.97
Total 2,685,399.35 488,461,537.84
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(b) Receivables past due and impaired
December 31st 2007 December 31st 2006
Advances to customers Advances to customers
Receivables impaired per case 4,535,439.15 4,132,670.06
Total 4,535,439.15 4,132,670.06
Letter of credit coverage 2,399,498.78 0.00
Credit risk concentrationGreece West Europe New Europe Other Total
countries countries countries
Receivables from banks 2,152,295.85 106,602.74 2,258,898.59
Advances to customers
- Large corporate companies 271,918,557.54 2,133.26 2,660,489.73 2,483.31 274,583,663.84
- Middle corporate companies 241,554,144.12 26,576.47 241,580,720.59
- Small corporate companies 3,096,071.71 3,096,071.71
Forfaiting deals 8,551,644.63 18,849,565.83 27,401,210.46
December 31st 2007 527,272,713.85 2,133.26 21,643,234.77 2,483.31 548,920,565.19
December 31st 2006 447,067,374.99 2,912,788.00 42,628,058.00 492,608,220.99
Activity sectorCommerce Industry Banks Constructions Total& Services
Receivables from banks 2,258,898.59 2,258,898.59
Advances to customers
- Large corporate companies 158,530,577.67 111,340,756.87 4,712,329.30 274,583,663.84
- Middle corporate companies 167,813,889.61 72,961,732.24 805,098.74 241,580,720.59
- Small corporate companies 2,027,735.87 1,068,335.84 3,096,071.71
Forfaiting deals 23,069,737.99 18,737.32 4,312,735.15 27,401,210.46
December 31st 2007 351,441,941.14 185,389,562.27 2,258,898.59 9,830,163.19 548,920,565.19
December 31st 2006 336,772,947.60 152,757,935.79 2,685,399.35 391,938.25 492,608,220.99
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3.2 Market RiskThe market risk derives from the open positions in interest rates or in foreign currency or from their combination, which areexposed in general cause of fluctuations in the market.
Sensitivity analysis of the market on 31 December 2007The above-analyzed risk factors (interest rate risk and currency risk) in a change of the currency rate relative to the base currencyof the company or the interest rate cause a change in the income statement of the company.
(i) Sensitivity in currency riskThe foreign currencies that the company mostly manages in order to cover the needs of its customers are US dollars USD andEnglish pounds GBP. In order to be hedged the currency risk from revaluation or devaluation relative to the base currency, thechallenge is to be weighted the foreign currency assets over the respective liabilities, to minimize the effect from any change in thecurrency rate. Moreover, foreign currency rate or interest rate stability can be obtained, with the use of financial derivatives «swap».
Based on the foreign currency balance of 31 December 2007 in USD a change in currency rate of the US dollar USD (devaluation)or revaluation of 1% will have an effect of (ú1.214) or ú1.214 respectively. An equivalent change of the English pound will be(ú11.563) or ú11.563.
(ii) Sensitivity in interest rate riskIn order to be covered from interest rate risk, the company keeps its customers receivables volumes, relevant to loan liabilities soif any fluctuation of interest rate occur, will have a minor effect in the income statement of the company.
Alternatively, the interest rate risk can be hedged with the use of financial derivatives «swap», so for ex. floating rate receivablescan be converted to stable or vice versa in order the hedging of interest risk to be accomplished.
Based on the balance of 31 December 2007 a change of the interest rate increase or (decrease) of 1% will have an effect ofú420.000 or (ú420.000) respectively influenced by 99% from the use of capital.
3.2.1 Currency RiskThe Company extends advances to its clients against the accounts receivable assigned to it, denominated in the currency theassigned transactions have been invoiced. Nevertheless, the risk assumed by the Company is limited, as a result of its policy todraw the necessary cash from open accounts, denominated in the same currency with the advances extended to clients. Currencyrisk is limited to the Company’s own foreign exchange reserves from the annual period’s profits, which are converted to Euro, theCompany’s functional currency, at regular intervals.
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Currency risk at 31.12.2007USD GBP Other For.Cur. EUR TOTAL
ASSETS
Cash and cash equivalents 521.99 521.99
Receivables from banks 36,856.79 543,995.61 415.11 1,677,631.08 2,258,898.59
Advances to customers 62,110,751.14 636,024.26 483,914,891.21 546,661,666.61
Intangible assets 40,725.94 40,725.94
Property, plant and equipment 407,629.03 407,629.03
Financial derivative instruments 5,435.94 5,435.94
Deferred income tax assets 109,766.95 109,766.95
Other assets 149,976.12 149,976.12
Total Assets 62,147,607.93 1,180,019.87 415.11 486,306,578.26 549,634,621.17
Memo accounts
Cross currency interest rate swap 0.00 0.00 0.00 0.00 0.00
Assets total Currency Position 62,147,607.93 1,180,019.87 415.11 486,306,578.26 549,634,621.17
LIABILITIES
Amounts due to banks 5,709,906.53 3,201.69 59,400,119.36 65,113,227.58
Amounts due to clients 69.81 381.55 3,108,114.77 3,108,566.13
Corporate Bonds 56,310,873.67 379,655,980.66 435,966,854.33
Income tax liabilities 748,728.64 748,728.64
Retirement benefit obligations 58,448.00 58,448.00
Deferred income tax liabilities 1,358.98 1,358.98
Other liabilities 4,097.70 8,565.71 1,163.62 2,425,904.27 2,439,731.30
Total liabilities 62,024,947.71 12,148.95 1,163.62 445,398,654.68 507,436,914.96
Memo accounts
Cross currency interest rate swap 0.00 0.00 0.00 0.00 0.00
Liabilities total Currency Position 62,024,947.71 12,148.95 1,163.62 445,398,654.68 507,436,914.96
Net Currency Position 122,660.22 1,167,870.92 (748.51) 40,907,923.58 42,197,706.21
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Currency risk at 31.12.2006USD GBP Other For.Cur. EUR TOTAL
ASSETS
Cash and cash equivalents 168,47 938,12 1.106,59
Receivables from banks 195,42 2.685.203,93 2.685.399,35
Advances to customers 9.179.329,14 8.909.377,09 471.834.115,41 489.922.821,64
Intangible assets 46.023,18 46.023,18
Property, plant and equipment 441.159,93 441.159,93
Financial derivative instruments 41.427,29 41.427,29
Deferred income tax assets 0,00 0,00
Other assets 76.156,58 76.156,58
Total Assets 9.179.329,14 8.909.377,09 363,89 475.125.024,44 493.214.094,56
Memo accounts
Cross currency interest rate swap 8.256.296,10 8.256.296,10
Assets total Currency Position 9.179.329,14 8.909.377,09 363,89 483.381.320,54 501.470.390,66
LIABILITIES
Amounts due to banks 2.166.321,60 7.750.383,39 153.290.633,43 163.207.338,42
Amounts due to clients 373,00 1.992,00 1.331.643,33 1.334.008,33
Corporate Bonds 293.650.000,00 293.650.000,00
Income tax liabilities 644.489,22 644.489,22
Retirement benefit obligations 50.530,00 50.530,00
Deferred income tax liabilities 4.094,00 4.094,00
Other liabilities 127.242,00 125.229,00 3.875.982,62 4.128.453,62
Total liabilities 2.293.936,60 7.877.604,39 0,00 452.847.372,60 463.018.913,59
Memo accounts
Cross currency interest rate swap 7.058.823,53 1.197.472,57 8.256.296,10
Liabilities total Currency Position 9.352.760,13 7.877.604,39 0,00 454.044.845,17 471.275.209,69
Net Currency Position (173.430,99 ) 1.031.772,70 363,89 29.336.475,37 30.195.180,97
3.2.2 Interest Rate RiskThe Company is exposed to interest rate risk that arises from changes in the prevailing market interest rates. Such changes mayincrease or decrease interest rate margins, leading to a reduction in estimated profits. The company’s policy is to set fixedinterest rate margins with its clients, for each currency, based on the rates determined by the market for certain time periods(monthly or quarterly euribor), covering its cash flows with a corresponding agreement with the lending bank. Whenever a fixedinterest rate is established, the Company follows market trends and adjusts the rate at regular intervals, in accordance withparent Bank policy.
31
Interest rate risk at 31.12.2007Up to 3 3-12 1-5 Over 5 Non-affectedmonths months years years items Total
ASSETS
Cash and cash equivalents 521.99 521.99
Receivables from banks 2,258,898.59 2,258,898.59
Advances to customers 465,701,986.92 15,041,007.58 65,918,672.11 546,661,666.61
Intangible assets 40,725.94 40,725.94
Property, plant and equipment 407,629.03 407,629.03
Financial derivative instruments 5,435.94 5,435.94
Deferred income tax assets 109,766.95 109,766.95
Other assets 149,976.12 149,976.12
Total Assets 467,961,407.50 15,041,007.58 0.00 0.00 66,632,206.09 549,634,621.17
LIABILITIES
Amounts due to banks 65,113,227.58 65,113,227.58
Amounts due to clients 3,108,566.13 3,108,566.13
Corporate Bonds 370,048,182.22 65,918,672.11 435,966,85.33
Income tax liabilities 748,728.64 748,728.64
Retirement benefit obligations 58,448.00 58,448.00
Deferred income tax liabilities 1,358.98 1,358.98
Other liabilities 2,439,731.30 2,439,731.30
Total liabilities 438,269,975.93 0.00 0.00 0.00 69,166,939.03 507,436,914.96
Total on balance sheet interest rate gap 29,691,431.57 15,041,007.58 0.00 0.00 (2,534,732.94) 42,197,706.21
3.2.3 Liquidity riskThe Company is daily exposed to liquidity risks arising from the management of its receivables. The analysis of client cash flowsis illustrative, and not conclusive, because it is determined by the commercial arrangements between the sellers and theircustomers (debtors), however, the Company's liquidity requirements can be identified in terms of adequate planning andborrowing requirement optimisation. The Company maintains sufficient liquidity from the issuance of corporate bonds, whichcover the largest part of its cash flows. Open borrowing covers the remaining liquidity requirements in the currency that thenecessary cash flows are denominated, in order to enable cash flow management with the best possible returns. In case oftemporary cash flow surpluses, the Company places its cash in overnight deposits.
On the next table the financial liabilities of the company are presented based on the contractual non-discounted cash flows for2007 and 2006.
These liabilities can be readjusted with premature refunding of the borrowed capital or the bond issue without penalty clauses withbasic criterion the safeguarding of the optimum liquidity for the company.
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Liquidity risk at 31.12.2007LIABILITIES Up to 1 month 1-3 months 3-12 months 1-5 years Total
Amounts due to banks
Capital due 65,113,227.58 65,113,227.58
Interest expense 251,771.15 251,771.15
Corporate Bonds
Capital due 13,501,690.00 40,808,391.00 104,070,024.00 277,456,000.00 435,836,105.00
Interest expense 1,569,897.00 2,914,157.00 10,683,341.00 18,867,623.00 34,035,018.00
Total Liabilities 80,436,585.73 43,722,548.00 114,753,365.00 296,323,623.00 535,236,121.73
Liquidity risk at 31.12.2006LIABILITIES Up to 1 month 1-3 months 3-12 months 1-5 years Total
Amounts due to banks
Capital due 163,207,338.42 163,207,338.42
Interest expense 548,104.64 548,104.64
Corporate Bonds
Capital due 63,260,000.00 230,390,000.00 293,650,000.00
Interest expense 983,763.00 1,967,526.00 8,427,054.00 25,926,230.00 37,304,573.00
Total Liabilities 164,739,206.06 1,967,526.00 71,687,054.00 256,316,230.00 494,710,016.06
3.3 Capital AdequacyThe Bank of Greece in order to monitor the financial companies has set certain rules through directives. One of the directivesconcerns the measurement of risk for capital adequacy, an indicator, as a result of the total capital reserves versus their totalweighted assets, that it must be grater than 10%, in order to certain the cover of the risk assets from a reduction of their value,Bank of Greece impose the financial companies to keep the adequate provisions and capital (supervisory capital).
The supervisory capital of the companies as they are stated in the directive 2053/18.3.92 for their assets, weighted by the relativerisk factors (directive 2054/18.3.92) shape the capital adequacy indicator.
As stated on the following table the capital adequacy indicator of the company is fairly higher that the minimum required whichis stated in the above directive of the Bank of Greece as 10% and gives the opportunity to the company for its unhindered growthover the next years.
CAPITAL ADEQUACY INDICATOR31.12.2007 31.12.2006
Supervisory Capital 38,406,508.89 27,003,567.79
Weighted assets and memo accounts 290,952,635.58 218,314,310.34
Capital adequacy Indicator 13.20% 12.37%
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4. Critical accounting estimates and assumptionsa) Main management assumptions for estimating provisionsThe Company regularly reviews its factoring advances portfolio to assess impairment. In order to determine whether animpairment loss should be recognized in the income statement, the Company uses its judgement to establish whether there areindications of an observable reduction in the cash flows arising from a group, before this reduction can be correlated to a specificclient or debtor. Such indications may include observable data that show an adverse change in the payment status of borrowersin a group, due to adverse economic conditions in a specific industry or national or local economic conditions that correlated withdefaults on assets in the group, or to random events such as floods, fires etc., which are expected to affect the repayment of theirdebts towards the Company. When estimating future cash flows, the Management uses estimates based on historical lossexperience for assets with credit risk characteristics and objective evidence of impairment similar to those in the group of loansand receivables. The methodology and assumptions used for the estimation of the amount and the timing of the future cash flowsare regularly reviewed, in order to reduce any differences between estimated and actual losses.
The provision for impairment of receivables is the difference between the receivable that has been accounted for and the estimatedrecoverable amount. The recoverable amount is the present value of the future cash flows from doubtful debts, after taking intoaccount any collateral, and discounted by the effective interest rate of the agreement.
Any event that alters and reverses prior loss estimates, affects the formed provisions accordingly and is recognized in the incomestatement.
b) Fair Value of Derivative Financial InstrumentsThe fair value of financial instruments that are not traded in an active market is determined by using valuation techniques.Experienced and specialized executives of the parent Bank conduct any valuation methods used for determining fair value.
c) Income taxThe Company’s management makes estimates, in order to determine the income tax provision. The Company recognizes liabilitiesfor anticipated tax audit issues, based on estimates of whether additional taxes will be due. Where the final tax outcome of thesematters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred taxprovisions in the period in which such determination is made.
5. Net interest income31.12.2007 31.12.2006
Interest and related income
Advances to customers 19,790,934.48 12,403,011.41
Interest income from derivatives (swap) 100,648.69 835,495.45
Other interest income 1,584,843.28 842,850.94
Total 21,476,426.45 14,081,357.80
Interest and related expense
Amounts due to banks 1,135,273.75 2,021,181.87
Interest expense from derivatives (swap) 128,485.52 1,794,702.27
Corporate bonds issued 13,624,873.48 5,340,605.93
Total 14,888,632.75 9,156,490.07
Net interest Income 6,587,793.70 4,924,867.73
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6. Net commission income31.12.2007 31.12.2006
Commission income
Factoring services 5,829,481.84 5,765,991.51
Total 5,829,481.84 5,765,991.51
Fee and commission expense 1,486,188.94 936,008.61
Total 1,486,188.94 936,008.61
Net commission income 4,343,292.90 4,829,982.90
7. Other income31.12.2007 31.12.2006
Income from tax settlement 0.00 34,219.37
Foreign exchange gain (loss) 71,662.34 (37,613.09)
Income from derivatives evaluation 5,435.94 66,349.28
Other income 52,998.89 30,712.68
Total 130,097.17 93,668.24
8. Payroll and staff costs31.12.2007 31.12.2006
Salaries 1,490,999.16 1,362,407.43
Employer contributions 360,502.56 323,974.80
Pension costs 7,918.00 4,925.00
Other cost 718,667.12 528,430.88
Total 2,578,086.84 2,219,738.11
The average number of persons employed by the company during the fiscal year 2007 was 64. (2006: 65)
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9. Administrative expenses31.12.2007 31.12.2006
Building operating leases 316,827.07 316.270.44
Third party compensation and charges 68,851.19 123,617.67
Telephone - Postage - Information systems 77,319.71 77,656.01
Repairs - Maintenance - Insurance premiums 27,411.23 36,444.58
Electricity - Water - Cleaning 64,249.81 68,620.00
Advertising costs 38,952.68 85,026.83
Subscriptions 17,830.13 13,396.96
Office supplies 36,536.73 37,168.23
Other overheads 56,956.44 158,285.58
Total 704,934.99 916,486.30
10. Impairment provisions on customer receivables31.12.2007 31.12.2006
Impairment charged for the year 66,192.13 196,585.88
Total 66,192.13 196,585.88
11. Income tax expense31.12.2007 31.12.2006
Current income tax 2,043,698.18 1,965,690.35
Prior year tax audit differences 0.00 62,942.00
Deferred tax (112,501.97) 24,246.12
Total 1,931,196.21 2,052,878.47
The Greek tax rate for 2007 is 25% (2006: 29%)
31.12.2007 31.12.2006
Profit before tax 7,605,721.45 6,417,329.60
Income tax expense 25.00% 1,901,430.36 29.00% 1,861,025.58
Increase or decrease arising from:
Prior year tax audit differences 0.98% 62,942.00
Income not subject to tax -0.58% (37,291.22)
Tax from non-deductible expenses 0.39% 29,765.85 2.59% 166,202.11
Income tax expense 25.39% 1,931,196.21 31.99% 2,052,878.47
36 ∞ N N U A L R E P O R T 2 0 0 7
F i n a n c i a l S t a t e m e n t s f o r t h e y e a r 2 0 0 7
Assets12. Cash and cash equivalents
31.12.2007 31.12.2006
Cash 521.99 1.106.59
Receivables from banks
Current accounts 2,258,898.59 2,685,399.35
Total cash and cash equivalents 2,259,420.58 2,686,505.94
13. Advances to customers31.12.2007 31.12.2006
Invoice discounting 71,458,078.60 42,984,272.22
Domestic factoring with recourse 121,487,771.26 134,000,931.16
Domestic non-recourse factoring 246,633,525.44 236,225,622.93
International factoring 82,122,551.19 55,050,852.58
Forfaiting deals 27,446,007.58 24,332,529.01
Total 549,147,934.07 492,594,207.90
Less: Provision for impairment of receivables (2,486,267.46) (2,671,386.26)
Total 546,661,666.61 489,922,821.64
Provision for impairment of receivables 1/1 - 31/12/2007 1/1 - 31/12/2006
Starting balance 2,671,386.26 2,474,800.38
Provisions charge for the year 66,192.13 196,585.88
Less: Provisions used for written off loans (251,310.93)
Provision balance end of year 2,486,267.46 2,671,386.26
37
14. Intangible AssetsSoftware - Includes only software
Balance at 1.1.2006
Acquisition cost 150,993.22
Accumulated amortization (94,989.84)
Net book balance 56,003.38
Period 1.1.2006 - 31.12.2006
Additions 11,107.06
Disposals
Wastages
Amortization charge (21,087.26)
Balance at 31.12.2006
Acquisition cost 162,100.28
Accumulated amortization (116,077.10)
Net book balance at 31.12.2006 46,023.18
Period 1.1.2007 - 31.12.2007
Additions 17,162.00
Disposals
Wastages
Amortization charge (22,459.24)
Balance at 31.12.2007
Acquisition cost 179,262.28
Accumulated amortization (138,536.34)
Net book balance at 31.12.2007 40,725.94
The assets fair value approaching the net book balance at 31/12/07.
38 ∞ N N U A L R E P O R T 2 0 0 7
F i n a n c i a l S t a t e m e n t s f o r t h e y e a r 2 0 0 7
15. Property, plant and equipmentImprovements of Other TOTAL
third party property Equipment
Balance at 1.1.2006
Acquisition cost 491,158.26 332,254.88 823,413.14
Accumulated amortization (180,102.35) (210,075.93) (390,178.28)
Net book balance 311,055.91 122,178.95 433,234.86
Period 1.1.2006 - 31.12.2006
Additions 9,829.95 75,386.86 85,216.81
Disposals
Wastages
Amortization charge (35,222.14) (42,069.60) (77,291.74)
Balance at 31.12.2006
Acquisition cost 500,988.21 407,641.74 908,629.95
Accumulated amortization (215,324.49) (252,145.53) (467,470.02)
Net book balance at 31.12.2006 285,663.72 155,496.21 441,159.93
Period 1.1.2007 - 31.12.2007
Additions 50,258.22 50,258.22
Disposals
Wastages
Amortization charge (34,659.24) (49,129.88) (83,789.12)
Balance at 31.12.2007
Acquisition cost 500,988.21 457,899.96 958,888.17
Accumulated amortization (249,983.73) (301,275.41) (551,259.14)
Net book balance at 31.12.2007 251,004.48 156,624.55 407,629.03
The assets fair value approaching the net book balance at 31/12/07.
39
16. Deferred income tax assets - liabilitiesDeferred income tax assets Balance at Recognised Recognised Balance at
1.1.2006 in income in equity 31.12.2006statement
Intangible Assets 3,437.12 (3,437.12) 0.00
Derivatives (Swap) 16,715.00 (16,715.00) 0.00
Total 20,152.12 (20,152.12) 0.00
Deferred income tax liabilities Balance at Recognised Recognised Balance at 1.1.2006 in income in equity 31.12.2006
statement
Derivatives (Swap) 0.00 (4,094.00) (4,094.00)
Total 0.00 (4,094.00) (4,094.00)
Grant total at 31/12/2006 20,152.12 (24,246.12) (4,094.00)
Deferred income tax assets Balance at Recognised Recognised Balance at 1.1.2007 in income in equity 31.12.2007
statement
Provision for retirement obligations 0.00 14,612,00 14,612.00
Provision for personnel bonus 0.00 95,154,95 95,154.95
Total 0.00 109,766,95 0.00 109,766.95
Deferred income tax liabilities Balance at Recognised Recognised Balance at 1.1.2007 in income in equity 31.12.2007
statement
Derivatives (Swap) (4,094.00) 2.735.02 (1.358.98)
Total (4,094.00) 2.735.02 (1.358.98)
Grant total at 31/12/2007 (4,094.00) 112.501.97 0.00 108.407.97
17. Other assets31.12.2007 31.12.2006
Guarantees - advances 20,215.95 11,399.61
Prepaid expenses 74,554.30 33,796.89
Other receivables 55,205.87 30,960.08
Total 149,976.12 76,156.58
40 ∞ N N U A L R E P O R T 2 0 0 7
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Liabilities18. Amounts due to banksObligations towards banks arise from credit agreement, concerning an open, floating interest rate account, signed by EFG Factorsand EFG Eurobank Ergasias.
The above agreement allows the company to maintain open accounts in foreign currency in order to extend advances to its clientsin the corresponding currencies.
The interest rate charged to customers depend on the particular customer deal and is either a monthly Euribor or Libor floatinginterest rate or a fix rate for the given period, plus spread in the relevant currency.
Open account agreement31.12.2007 31.12.2006
Loans balance ú 64,566,287.33 ú 163,207,338.42
Accrued interest payable ú 546,940.25 ú 1,229,775.20
Total amount due ú 65,113,227.58 ú 164,437,113.62
The fair value of the above loans approached their book value on the corresponding balance sheet dates.
19. Amounts due to clientsAmounts due to clients arise from the credit balances of client open accounts, resulting from collections that had not beenrendered on the date the financial statements were prepared. The amount due to clients on 31/12/07 amounts to ú3,108,566.13(at 31/12/06: ú1,334,000.00)
20. Corporate BondsIn order to cover its borrowing requirement EFG Factors SA issued the following Corporate Bonds
Corporate Bonds at 31.12.2007CORPORATE BONDS ISSUED IN 2007
AMOUNT ISSUE DATE DUE DATE INTEREST RATE BONDS BONDS BALANCEFIX/FLOATING PCS IN EUR (FACE VALUE)
270,000,000 ú 29/6/2007 30/6/2010 FLOATING 270 270,000,000.00 ú
2,790,000 ú 17/9/2007 17/2/2012 FIX 2,790 2,754,000.00 ú
26,000,000 ú 5/10/2007 31/10/2007 FIX 26 0.00 ú
3,895,000 ú 29/11/2007 15/1/2012 FIX 3,895 3,867,000.00 ú
2,570,000 ú 18/12/2007 6/2008-6/2011 FIX 2,570 2,570,000.00 ú
100,000,000 ú 31/12/2007 30/6/2008 FLOATING 100,000 100,000,000.00 ú
405,255,000 ú 379,191,000.00 ú
41
AMOUNT ISSUE DATE DUE DATE INTEREST RATE BONDS BONDS BALANCEFIX/FLOATING PCS IN EUR (FACE VALUE)
15,000,000 USD 21/3/2007 10/5/2007 FIX 3
13,000,000 USD 30/3/2007 16/5/2007 FIX 13
2,110,000 USD 8/5/2007 20/12/2007 FIX 211
22,700,000 USD 31/5/2007 24/7/2007 FIX 227
14,500,000 USD 26/6/2007 10/8/2007 FIX 145
17,500,000 USD 5/7/2007 24/8/2007 FIX 175
19,500,000 USD 26/7/2007 10/9/2007 FIX 195
16,500,000 USD 27/8/2007 9/10/2007 FIX 16,500
17,500,000 USD 28/8/2007 9/10/2007 FIX 17,500
13,800,000 USD 17/9/2007 5/11/2007 FIX 13,800
19,700,000 USD 17/9/2007 5/10/2007 FIX 19,700
7,500,000 USD 1/10/2007 20/11/2007 FIX 7,500
14,400,000 USD 16/10/2007 3/12/2007 FIX 14,400
18,800,000 USD 29/10/2007 24/12/2007 FIX 18,800
3,150,000 USD 4/12/2007 11/9/2008 FIX 3,150 2,144,023.96 ú
19,750,000 USD 21/12/2007 18/2/2008 FIX 19,750 13,442,689.90 ú
19,750,000 USD 21/12/2007 18/1/2008 FIX 19,750 13,442,689.90 ú
9,600,000 USD 28/12/2007 14/2/2008 FIX 9,600 6,534,168.25 ú
22,500,000 USD 28/12/2007 11/2/2008 FIX 22,500 15,314,456.85 ú
7,900,000 USD 31/12/2007 19/2/2008 FIX 7,900 5,377,075.96 ú
295,160,000 USD 56,255,104.82 ú
CORPORATE BONDS ISSUED IN 2006
AMOUNT ISSUE DATE DUE DATE INTEREST RATE BONDS BONDS BALANCEFIX/FLOATING PCS IN EUR (FACE VALUE)
650,000 ú 29/12/2006 30/11/2008 FIX 65 390,000.00 ú
BONDS GENERAL TOTAL AT 31/12/2007 435,836,104.82 ú
BONDS ACCRUED INTEREST AT 31/12/2007 130,749.51 ú
BONDS TOTAL DUE AT 31/12/2007 435,966,854.33 ú
Corporate Bonds at 31.12.2006
AMOUNT ISSUE DATE DUE DATE INTEREST RATE BONDS BONDS BALANCEFIX/FLOATING PCS IN EUR (FACE VALUE)
40,000,000 ú 31/12/2004 31/12/2007 FLOATING 40 40,000,000.00 ú
130,000,000 ú 2/6/2006 30/6/2011 FLOATING 13 130,000,000.00 ú
50,000,000 ú 30/8/2006 31/7/2009 FLOATING 50 50,000,000.00 ú
23,000,000 ú 19/9/2006 9/7/2007 FIX 23 23,000,000.00 ú
50,000,000 ú 19/12/2006 31/12/2009 FLOATING 1 50,000,000.00 ú
650,000 ú 29/12/2006 31/05/09 FIX 65 650,000.00 ú
BONDS GENERAL TOTAL AT 31/12/2006 293,650,000.00 ú
BONDS ACCRUED INTEREST AT 31/12/2006 702,813.89 ú
BONDS TOTAL DUE AT 31/12/2006 294,352,813.89 ú
42 ∞ N N U A L R E P O R T 2 0 0 7
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21. Assets - Liabilities due to derivativesThe company within 2006 entered the following swaps:1) Cross currency interest rate swap agreement for USD 5,000,000 against EUR 3,921,568.63, for a 6 months period. 2) Cross currency interest rate swap agreement for USD 4,000,000 against EUR 3,137,254.90 for a 12 months period in order
to hedge currency and interest rate risk. The above two derivatives were due in 2007.3) Interest rate swap agreement to be paid in 7 semi-annual equal instalments, the last due on February 2010, in order to hedge interest
rate risks, the outstanding amount at 31.12.07 was ú855,337.55 (at 31.12.2006 the outstanding amount was ú1,197,472). The valuation of derivatives at 31.12.2007 produces an asset of ú5,435.94 and at 31.12.2006 the valuation was ú41,427.29respectively.
22. Income tax liabilities31.12.2007 31.12.2006
Income tax liabilities 748,728.64 644,489.22
Total 748,728.64 644,489.22
23. Retirement benefit obligations31.12.2007 31.12.2006
Balance at January 1st 50,530.00 49,945.00
Provision for the period 7,918.00 4,925.00
Benefits paid (4,340.00)
Balance at December 31st 58,448.00 50,530.00
Expenses recognized in the income statement
Current service cost 6,509.64 4,049.00
Interest cost 1,408.36 876.00
Total, included in staff costs 7,918.00 4,925.00
2007 2006
Actuarial assumptions % %
Discount rate 4.90 4.25
Future salary increases 3.50 3.50
Inflation 2.50 2.50
24. Other liabilities31.12.2007 31.12.2006
Social security organizations 81,442.46 74,618.89
Accrued expenses 483,298.70 70,741.41
Suppliers 430,383.85 112,531.56
Other Liabilities 129,222.60 981,952.53
Other tax liabilities 1,315,383.69 956,020.14
Total 2,439,731.30 2,195,864.53
43
25. Share CapitalThe extraordinary General Assembly held on December 12th 2007, approved a share capital increase of 7,200,000 euros, cash-financed through the issuance of 160,000 new ordinary registered shares, with a par value of 45 euros and a sale price of 62.50euros each. Following the above increase, the new invested capital amounted to ú10,000,000, while the new shares include atotal share premium of ú2,800,000. The Company’s share capital following the new capital increase amounted to 20,700,000euros, divided into 460,000 shares with a par value of ú45.00 each. The total share premium of 1,500,000 euros plus thepremium of ú2,800,000 minus the tax expenses due to the above increase was booked in a special share premium reserve.
26. Statutory reserveIn accordance with Greek corporate law, the Company is obliged to retain 5% of its net annual accounting profits, as a statutoryreserve. Retention is not mandatory if the total statutory reserve exceeds 1/3 of the paid in share capital. This reserve is notdistributable throughout the entire life of the Company and is intended to cover any debit balances of the retained earningsaccount. On 31.12.2007 the company’s statutory reserve amounted to ú1,140,155.69 (2006: ú849,545.89).
27. Retained earnings This account includes the non-taxed reserves of ú62,746.33, resulting from non-taxed income that was not distributed and shallnot be distributed in the future, and therefore no deferred tax was calculated in accordance with IAS 12.
On 31/12/2007 total retained earnings amounted to ú16,129,550.52 (2006: ú14,345,635.08).
28. Operational lease CommitmentsThe Company leases various assets under operating lease agreements, whose cancellation incurs liability for the paymentdamages.
a) Damage payable in case all leases are cancelled.
December 31st, 2007 December 31st, 2006Buildings Vehicles Buildings Vehicles
ú ú ú ú
119,840.00 17,166.00 168,260.38 8,153.55
b) Future aggregate minimum lease payments under cancellable and non-cancellable operating leases.
December 31st, 2007 December 31st, 2006Buildings Vehicles Buildings Vehicles
ú ú ú ú
Not later than 1 year 322,337.28 44,842.20 319,826.99 33,449.37
Later than 1 year but less than 5 years 1,230,905.65 80,264.15 1,342,352.42 69,903.83
Later than 5 years 668,138.07 913,674.28
44 ∞ N N U A L R E P O R T 2 0 0 7
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29. Related party transactionsThe Company is controlled by EFG Eurobank Ergasias (which is headquartered in Athens and is listed in the Athens StockExchange), which owns 100% of the Company’s share capital. The ultimate parent company is EFG Bank European FinancialGroup, a bank incorporated in Switzerland.
Related party transactions 31.12.2007 31.12.2007EFG Eurobank Ergasias Other related parties
Assets
Receivables from banks 2,006,798.88 106,720.42
Other assets
2,006,798.88 106,720.42
Liabilities
Amounts due to banks 65,113,227.58 0.00
Debt securities issued 435,966,854.33
Other liabilities
501,080,081.91 0.00
Memo accounts
Letters of credit on our behalf 331,645,000.00
Income
Income from derivatives (swap) 100,648.69 0.00
Interest income 278,057,00 85,507.00
378,705.69 85,507.00
Expenses
Interest and related expenses 14,760,147.23
Interest expense from derivatives (swap) 128,485.52
Commission expenses 66,700.00
Administration expenses 94,959.10 4,085.00
15,050,291.85 4,085.00
45
Related party transactions 31.12.2006 31.12.2006EFG Eurobank Ergasias Other related parties
Assets
Receivables from banks 1,630,387.28 3,086.51
Other assets
1,630,387.28 3,086.51
Liabilities
Amounts due to banks 163,207,338.42
Debt securities issued 293,650,000.00
Other liabilities
456,857,338.42
Memo accounts
Letters of credit on our behalf 349,198,000.00
Income
Income from derivatives (swap) 835,495.45
Interest income 104,771.83
940,267.28
Expenses
Interest and related expenses 7,361,787.80
Interest expense from derivatives (swap) 1,794,702.27
Commission expenses 31,203.00
Administration expenses 12,914.00 4,051.00
9,200,607.07 4,051.00
Transactions with other related parties concern the companies Be-Business Exchange SA, EFG Insurance Services SA, andEurobank Tekfen in Turkey, Eurobank EFG Bulgaria.
The necessary financing cash flows of the company are covered with open account financing from the parent company EFGEurobank Ergasias, the issuance of corporate bonds, or share capital increases.
46 ∞ N N U A L R E P O R T 2 0 0 7
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Cash flows from financing activities
Corporate Bonds 613,142,241.19 253,650,000.00
Less - Corporate bonds repayments (470,954,489.40) (130,000,000.00)
Less - Dividend payment (3,600,000.00)
Funds drawn from banks (98,641,051.09) (28,503,355.31)
Capital increase less tax expenses 9,928,000.00
Key management compensation.
Salaries and other short-term benefits ú468,048 (411,397 in 2006).
30. Contingent Liabilities(a) Legal issuesThe Company’s Management and its Legal Department judge that there are no outstanding cases, which may have a major impacton the Company’s financial position.
(b) Taxation issuesEFG FACTORS has been tax audited for the financial years including 2004, and therefore its tax liabilities have been finalized. Thefinancial years 2005, 2006 and 2007 have not been tax audited, but the Company has made an adjustment in order to determinetaxable profits in accordance with income tax legislation.
31. Events after the balance sheet dateThere are no events after the balance sheet date that have a significant impact on the Company’s financial statements.
47
Independent Auditor’s reportTo the Shareholders of EFG FACTORS SA
Report on the financial statementsWe have audited the accompanying consolidated financial statements of EFG FACTORS SA (the “Company”) which comprise thebalance sheet as of 31 December 2007 and the income statement, statement of changes in equity and cash flow statement forthe year then ended and a summary of significant accounting policies and other explanatory notes.
Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with InternationalFinancial Reporting Standards, as adopted by the European Union. This responsibility includes the design, implementation andmaintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from materialmisstatement, whether due to fraud or error. This responsibility also includes the selection and application of appropriateaccounting policies and the formation of accounting estimates that are reasonable in the circumstances.
Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit inaccordance with the Greek Standards on Auditing which have been aligned with the International Standards on Auditing. Thosestandards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurancewhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of thefinancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controlrelevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internalcontrol. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accountingestimates made by Management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit.
OpinionIn our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as ofDecember 31st 2007, and of its financial performance and its cash flows for the year then ended in accordance with InternationalFinancial Reporting Standards, as adopted by the European Union.
Report on other legal and regulatory requirementsThe contents of the Directors’ Report comply with the accompanying financial statements.
Athens, April 1st, 2008The auditor
Kyriakos RirisAuditors’ Registry Number 12111
268 Kifissias Avenue - 152 32 HalandriAuditors’ Registry Number 113
HEAD OFFICE3, ∫apodistriou St. & Messogion Ave.
GR 153 43 Athens
Tel.: +30 210 6078 000
Fax: +30 210 6078 010 -020 -030
www.efgfactors.com
www.eurobank.gr
NORTHERN GREECE BRANCH 13, Karolou Ntil
GR 546 23 Thessaloniki
Tel.: +30 2310 376 980
Fax: +30 2310 376 960
www.efgfactors.com
BULGARIAN BRANCH135, Tsarigradsko Sh. Blvd.,
Office Express Building,
1784 Sofia, Bulgaria
Tel.: + 359 2 4015000
Fax: + 359 2 4015010
www.efgfactors.com
www.postbank.bg
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