VKF_FRAE_2017

209 VakıfBank Annual Report 2017 CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUEDIN TURKISH, SEE NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI EXPLANATIONS AND NOTES RELATED TO THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) Prior Period Geographical area Loan Receivables (Risks) Provision Domestic 6,412,988 5,319,644 European Union Countries - - OECD Countries (*) - - Off-Shore Banking Regions - - USA, Canada 65 50 Other 450 426 Total 6,413,503 5,320,120 (*) OECD Countries other than EU countries, USA and Canada. Aging analysis for overdue receivables Current Period Prior Period 31-60 days overdue 1,409,349 1,171,545 61-90 days overdue 813,948 889,662 (*) Loan receivables with overdue loans are taken into consideration. Breakdown of restructured receivables based on whether or not provisions are allocated Changes Made to Extend Payment Plan Current Period Prior Period Loans restructured from Standard Loans and Other Receivables 2,664,938 1,473,046 Loans restructured from Loans under Follow-up and Other Receivables 1,558,186 1,511,482 Loans restructured from Non-Performing Loans 335,136 392,162 b) Credit Risk Mitigation Qualitative disclosure on credit risk mitigation techniques Credit risk mitigation techniques in the Bank are evaluated within the scope of the "Policy Document on Credit Risk Management". Within the scope of "Communiqué on Credit Risk Mitigation", published in the Official Gazette dated 06.09.2014, numbered 291111 simple financial guarantee method is used for financial guarantees. Cash and cash equivalents,Treasury Support Cointaining Credit Guarantee Fund Securities and guarantees are used to mitigate credit risk. Policies regarding the valuation of financial collateral and the appraisal of the valuations and policies and procedures for the valuation of real estate established for the collateral of mortgage-backed loans, which are an asset class, have been established. These policies and procedures have been prepared in accordance with the "Communiqué on Credit Risk Mitigation" and cover the minimum requirements for collateral valuation and management. The Bank receives collaterals such as mortgages, sureties/guarantees and financial collaterals for the loans given.