2022 Report and Financial Statements slide image

2022 Report and Financial Statements

2022 REPORT AND FINANCIAL STATEMENTS - BANCO REGIONAL LETTER FROM THE PRESIDENT As of December 31, 2022 ECONOMIC AND FINANCIAL PERFORMANCE 21 AMOUNT IN GUARANI PUBLIC AND PRIVATE SECURITIES CURRENCY OF ISSUE AMOUNT IN CURRENCY OF ISSUE NOMINAL VALUE BOOK VALUE Treasury Bonds of the Republic of Paraguay (a) Monetary Regulation Bills Accrued interest Total As of December 31, 2021 Gs. Gs. Gs. 139.150.000.000 810.000.000.000 139.150.000.000 810.000.000.000 139.150.000.000 723.149.338.579 949.150.000.000 36.261.594.576 898.560.933.155 PUBLIC AND PRIVATE SECURITIES Treasury Bonds of the Republic of Paraguay (a) Monetary Regulation Bills Accrued interest Total AMOUNT IN GUARANI CURRENCY OF ISSUE AMOUNT IN CURRENCY OF ISSUE NOMINAL VALUE BOOK VALUE Gs. Gs. Gs. 139.150.000.000 200.000.000.000 139.150.000.000 200.000.000.000 339.150.000.000 139.150.000.000 179.592.840.888 1.267.774.899 320.010.615.787 (a) As of December 31, 2022, and 2021, the Bank has delivered Treasury Bonds for Gs. 20.000.000.000 in guarantees in favor of the BCP in compliance with the general regulations of the Paraguayan Payment System (SIPAP by its acronym in Spanish). c.5 Assets and liabilities with readjustment clauses Except for the loans obtained (liabilities) from the Financial Agency for Development (in Spanish "Agencia Financiera de Desarrollo" or AFD), the loans granted (assets) with the resources of the AFD, certain loans granted with its own resources and loans from abroad, which have contractual clauses for readjustments of the interest rates, there were no other assets or liabilities with readjustment clauses as of December 31, 2022, and 2021 respectively. These loans granted provide for annual rate adjustments according to the specific conditions included in the loan agreements. c.6 Loan portfolio Credit Risk Management: Credit risk is controlled by the Board of Directors and Management of the Entity, mainly through the evaluation and analysis of individual transactions, for which certain factors clearly defined in the Entity's credit policies are considered, such as: the demonstrated payment capacity and debt level of the debtor, the credit concentration of economic groups, individual credit granting limits, evaluation of economic sectors, preferred guarantees and working capital requirements, in accordance with market risks. Classification and valuation criteria:
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