XML 103 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Trading assets and liabilities | 12 Months Ended
--- | ---
Dec. 31, 2012
Trading Assets and Liabilities [Abstract] |
Trading assets and liabilities |
5. | Trading assets and liabilities
The fair value of trading assets and liabilities is as follows:
|  | December 31, |
(In thousands of US$) |  | 2012 |  |  | 2011 |
Trading assets: |  |  |  |  |  |  |  |
Sovereign bonds |  |  | 5,146 |  |  |  | 20,415 |
Cross-currency interest rate swaps |  |  | 49 |  |  |  | 21 |
Forward foreign exchange |  |  | 50 |  |  |  | - |
Future contracts |  |  | 20 |  |  |  | - |
Total |  |  | 5,265 |  |  |  | 20,436 |
Trading liabilities: |  |  |  |  |  |  |  |
Interest rate swaps |  |  | 100 |  |  |  | 748 |
Cross-currency interest rate swaps |  |  | 32,182 |  |  |  | 4,836 |
Forward foreign exchange |  |  | 22 |  |  |  | - |
Total |  |  | 32,304 |  |  |  | 5,584 |
Sovereign bonds outstanding as of December 31, 2012, 2011 and 2010, have generated gains of $0.1 million during 2012 and 2010, respectively, and loss of $0.7 million during 2011 which have been recorded in earnings. As of December 31, 2012 and 2011, bonds with a carrying value of $1.3 million and $19.0 million, respectively, secured repurchase agreements accounted for as secured borrowings and derivative financial instruments transactions. During 2012, 2011 and 2010, the Bank recognized the following gains and losses related to trading derivative financial instruments:
|  | Year ended December 31, |
(In thousands of US$) |  | 2012 |  |  | 2011 |  |  | 2010 |
Interest rate swaps |  |  | (310 | ) |  |  | (299 | ) |  |  | (2,091 | )
Cross-currency interest rate swaps |  |  | 11,537 |  |  |  | (4,858 | ) |  |  | (1,662 | )
Credit default swap |  |  | - |  |  |  | - |  |  |  | 13 |
Forward foreign exchange |  |  | 27 |  |  |  | 93 |  |  |  | - |
Future contracts |  |  | 207 |  |  |  | (29 | ) |  |  | - |
Total |  |  | 11,461 |  |  |  | (5,093 | ) |  |  | (3,740 | )
These amounts are reported in the Net gain (loss) from trading securities and Net gain (loss) from the investment fund trading lines in the consolidated statements of income. In addition to the trading derivative financial instruments, the Bank has hedging derivative financial instruments that are disclosed in Note 21. As of December 31, 2012 and 2011, trading derivative liabilities include interest rate swap and cross-currency interest rate swap contracts that were previously designated as fair value hedges of securities available-for-sale, and foreign-currency loans and borrowings, respectively that no longer qualify for hedge accounting. Hedge accounting of certain fair value hedges was discontinued during 2012. Adjustments to the carrying value of the hedged underlying transactions are amortized in the interest expense line over the remaining term of these transactions. Changes in the fair value of these derivative instruments after discontinuation of fair value hedge accounting are recorded in Net gain (loss) from trading securities. As of December 31, 2012 and 2011, information on the nominal amounts of derivative financial instruments held for trading purposes is as follows:
|  | 2012 |  |  | 2011 |
(In thousands of US$) |  | Nominal |  |  | Fair Value |  |  | Nominal |  |  | Fair Value |
|  | Amount |  |  | Asset |  |  | Liability |  |  | Amount |  |  | Asset |  |  | Liability |
Interest rate swaps |  |  | 35,291 |  |  |  | - |  |  |  | 100 |  |  |  | 17,000 |  |  |  | - |  |  |  | 748 |
Cross-currency interest rate swaps |  |  | 155,081 |  |  |  | 49 |  |  |  | 32,182 |  |  |  | 85,163 |  |  |  | 21 |  |  |  | 4,836 |
Forward foreign exchange |  |  | 7,152 |  |  |  | 50 |  |  |  | 22 |  |  |  | - |  |  |  | - |  |  |  | - |
Future contracts |  |  | 6,896 |  |  |  | 20 |  |  |  | - |  |  |  | 139 |  |  |  | - |  |  |  | - |
Total |  |  | 204,420 |  |  |  | 119 |  |  |  | 32,304 |  |  |  | 102,302 |  |  |  | 21 |  |  |  | 5,584 |

X
- Details
Name: | blx_TradingAssetsAndLiabilitiesAbstract
Namespace Prefix: | blx_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for trading assets and liabilities, that includes bonds acquired for trading purposes and receivables (unrealized gains) and payables (unrealized losses) related to derivative financial instruments which are not designated as hedges or which do not qualify for hedge accounting. + References No definition available. + Details
Name: | blx_TradingAssetsAndLiabilitiesDisclosureTextBlock
Namespace Prefix: | blx_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration