Financial and
ESG report 2020

Offsetting of assets and liabilities on the basis of ISDA agreements

The majority of the Group’s derivatives portfolio arises due to conclusion by the Bank framework ISDA agreements (International Swaps and Derivatives Agreements). Provisions included in the agreements define comprehensive procedures in case of infringement (mainly difficulties in payments), and provide possibility to cancel a deal, making settlements with counterparty base on offset amount of mutual receivables and liabilities. To date, the Bank has not exercised that option, however, in order to meet information requirements as described in IFRS 7 the following table presents the fair values of derivative instruments (both classified as held for trading and dedicated to hedge accounting) as well as cash collaterals under ISDA framework agreements with a theoretical maximum amount resulting from the settlement on the basis of compensation.

PLN’000 Amounts to be received Amounts to be paid
Valuation of derivatives 94 540 747 113
Amount of cash collaterals accepted/granted (28 758) (470 846)
Financial assets and liabilities covered by framework ISDA agreements allowing compensation 65 782 276 267
Theoretical maximum amount of compensation (65 782) (65 782)
Financial assets and liabilities covered by framework ISDA agreements allowing compensation taking into account theoretical amount of compensation 0 210 485

Search results