IX. Sales and Repurchase Agreements and Securities Lending Transactions Securities sold under agreements to repurchase (“repo”) are classified as “trading securities”, “available-for-sale securities” and “held-to-maturity securities” in the balance sheet according to the investment purposes and measured according to the portfolio to which they belong. Funds deposited under repurchase agreements are accounted under “Funds Provided under Repurchase Agreements” and difference between the sale and repurchase price determined by these repurchase agreements is accrued evenly over the life of the repo agreement using the internal rate of return method.
Funds given against securities purchased under agreements to resell (“reverse repo”) are accounted under “Receivables from reverse repurchase agreements” on the balance sheet. The difference between the purchase and resell price determined by these repurchase agreements is accrued evenly over the life of repurchase agreements using the internal rate of return method.
The Bank has no securities lending transactions.
