32. Repo and reverse repo transactions
Report Online
2020
Accounting policies
Reverse repo transactions are measured at amortized cost. The difference between the sale price and repurchase (sales) price constitutes interest income and is settled over the period of the agreement using the effective interest rate.
Reverse repo transactions are security sale transactions with a granted promise of repurchase with a defined contractual term and specified price. The securities that are a component of the reverse repo transactions are not eliminated from the statement of financial position and are measured in accordance with the principles specified for each category of securities. The difference between the sales price and the repurchase price is the interest expense and is deferred over the term of the contract using the effective interest rate.
Financial information
| Reverse repo transactions | 31.12.2020 | 31.12.2019 |
| Gross amount | – | 1 081 |
| Allowances for expected credit losses | – | – |
| Net amount | – | 1 081 |
As at 31 December 2020 and 31 December 2019, all reverse repo transactions were in Stage 1.
| CHANGES IN THE GROSS CARRYING AMOUNT DURING THE PERIOD | 2020 | 2019 |
| Reverse repo transactions | ||
| Carrying amount as at the beginning of the period, gross | 1 081 | 51 |
|
Granting or purchase of financial instruments |
– | 1 085 |
|
Repayments |
(1 081) | (51) |
|
Other changes |
– | (4) |
| Carrying amount as at the end of the period, gross | – | 1 081 |