TMBThanachart Bank Public Company Limited and its Subsidiaries (Formerly TMB Bank Public Company Limited and its Subsidiaries) Notes to the financial statements For the year ended 31 December 2021 130 The Bank and its subsidiaries expect that no significant modification gain or loss will arise as a result of applying the amendments to these changes. The amendments will require the Bank and its subsidiaries to disclose additional information about the entity’s exposure to risks arising from interest rate benchmark reform and related risk management activities. The Bank and its subsidiaries is in the process of preparing to amend contractual terms in response to IBOR reform according to ISDA IBOR Fallback Protocol 2020. The timing and method of transition has been performing in accordance with the Bank of Thailand and ISDA’s transition milestones. The main risk to which the Bank and it’s subsidiaries is exposed as a result of IBOR reform is mainly due to the renegotiation of THBFIX loan contracts through bilateral negotiation with customers. Financial risk is predominantly limited to interest rate risk. As at 31 December 2021, the outstanding financial instruments which have yet to transition to alternative benchmark rates are mainly in USD LIBOR and THBFIX which will be available until mid-2023. 47.2 Accounting guidance: Guideline for entities that provide support to COVID-19 affected debtors This accounting guidance is optional for all entities that provide support to debtors under BoT’s minimum supporting measures. This accounting guidance is applicable for support provided to debtors who were affected from COVID-19 during the period from 1 January 2022 to 31 December 2023 or as further updated by BoT. For debt restructuring under specified criteria from 1 January 2021 to 31 December 2021, the Bank and its subsidiaries can apply the relevant concept of staging and allowance under this accounting guidance to the debtors from 1 January 2022 to 31 December 2023. Under this accounting guidance, the Bank and its subsidiaries can elect to apply the BoT optional treatments which are in line with BoT circular letter number For Nor Sor 2 Wor 802/2564 dated 3 September 2021, regarding to Guidelines regarding the provision of financial assistance to the debtors affected by the COVID-19 (sustainable debt resolution). The optional treatments are classified into 2 groups according to the nature of the debt restructuring which are as follows: - Debt restructuring which aims to reduce the repayment other than term extension: Under this restructuring, the Bank and its subsidiaries will have an option to apply temporary accounting relief measure for classification and provisioning. (1st form of financial assistance) - Debt restructuring by term extension only: Under this restructuring, the Bank and its subsidiaries are required to classify loan’s staging and provisioning in accordance with relevant financial reporting standards. (2nd form of financial assistance) 374 TMBThanachart Bank Public Company Limited
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