EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES

9 Months Ended

Sep. 30, 2013

EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract]

EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES

5. EMPLOYEE LOANS AND ALLOWANCE FOR LOAN LOSSES

In the third quarter of 2012, the Board of Directors of the Company approved the Employee Housing Program (“the Housing Program”), which assists employees in purchasing housing in Belarus. The Housing Program was designed to be a retention mechanism for the Company’s employees in Belarus and is available to full-time employees who have been with the Company for at least three years. As part of the Housing Program, the Company will extend financing to employees up to an aggregate amount of $10,000. Additionally, the Company issues relocation loans in connection with intra-company transfers, as well as certain other individual loans.

During the nine months ended September 30, 2013, loans issued by the Company under the Housing Program were denominated in U.S. Dollars with a five-year term and carried an interest rate of 7.5%.

At September 30, 2013 and December 31, 2012, categories of employee loans included in the loan portfolio were as follows:

	September 30, 2013		December 31, 2012
Housing loans	$	5,868	$	—
Relocation and other loans		436		429
Total employee loans		6,304		429
Less:
Allowance for loan losses		—		—
Total loans, net of allowance for loan losses	$	6,304	$	429

There were no loans issued to principal officers, directors, and their affiliates during the three and nine months ended September 30, 2013 and 2012.

On a quarterly basis, the Company reviews the aging of its loan portfolio to evaluate information about the ability of employees to service their debt, including historical payment experience, reasons for payment delays and shortfalls, if any, as well as probability of collecting scheduled principal and interest payments based on the knowledge of individual borrowers, among other factors.

As of September 30, 2013 and December 31, 2012, there were no material past due or non-accrual employee loans. The Company determined no allowance for loan losses was required regarding its employee loans as of September 30, 2013 and December 31, 2012, and there were no movements in provision for loan losses during the three and nine months ended September 30, 2013 and 2012.