VKF_FRAE_2018_uyg11

224 Part III: Financial Highlights and Assessment of Risk Management CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND ITS FINANCIAL SUBSIDIARIES NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2018 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) Aging analysis for overdue receivables Current Period - December 31, 2018 31-60 days overdue 2,280,775 61-90 days overdue 1,774,842 (*) Loan receivables with overdue loans are taken into consideration. Prior Period- December 31, 2017 31-60 days overdue 1,409,349 61-90 days overdue 813,948 (*) Loan receivables with overdue loans are taken into consideration. Breakdown of restructured receivables based on whether or not provisions are allocated Payment Plan Extensions Current Period – December 31, 2018 Standard Loans 1,266,637 Loans Under Close Monitoring 6,916,542 Non-performing Loans 273,455 Payment Plan Extensions Prior Period – December 31, 2017 Standard Loans 2,664,938 Loans Under Close Monitoring 1,558,186 Non-performing Loans 335,136 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”, simple financial guarantee method is used for financial guarantees. Cash and cash equivalents 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.