The main task in the process of management of liquidity risk in the PGE Group is to plan and to report on a regular basis the liquidity of PGE S.A. and its subsidiaries. The PGE Group monitors the risk of losing the liquidity using forecasts of cash flows from operating, investing and financing activities. The purpose of the PGE Group is to maintain balance between continuity and flexibility of financing through the use of various sources of financing, such as: overdraft facilities, term and investment loans, national bonds and Eurobonds. Moreover, the parent entity conducts the on-going monitoring of meeting covenants stipulated in the agreements for financing and their forecasts in subsequent periods.
The above activities allow to determine the PGE Group’s debt raising capacity and ensure the capacity to repay debt on a long-term basis. They also affect the determination of its investment abilities.
In the PGE Group a central financing model applies, which provides that principally the external financing is executed by PGE S.A. The subsidiaries in the PGE Group use various sources of intra-group financing, such as: loans, bonds or agreements for consolidation of bank accounts and cash management agreements in the group of accounts (real cash pooling).
The below table presents maturity of the Group’s financial liabilities in accordance with the maturity date, based on contractual non-discounted payments.
|AS AT DECEMBER 31, 2016||Carrying amount||Total payments||Less than 3 months||Between 3 and 12 months||Between 1 and 5 years||More than 5 years|
|Loans and borrowings||6,171||6,887||69||278||2,084||4,456|
|Trade and other financial liabilities||3,589||3,589||2,263||1,293||33||-|
|Liabilities from finance lease and lease agreements with a purchase option||1||1||-||1||-||-|
|Derivatives measured at fair value through profit or loss||30||30||-||20||10||-|
|AS AT DECEMBER 31, 2015||Carrying amount||Total payments||Less than 3 months||Between 3 and 12 months||Between 1 and 5 years||More than 5 years|
|Loans and borrowings||1,673||1,847||36||194||877||740|
|Trade and other financial liabilities||3,979||3,979||2,780||1,165||34||-|
|Liabilities from finance lease and lease agreements with a purchase option||2||2||-||1||1||-|
|Derivatives measured at fair value through profit or loss||89||92||1||57||34||-|