Integrated report 2021

25.5 Collateral for repayment of receivables and liabilities

The Group uses many financial instruments and combinations thereof as collaterals for repayment of loans. The most frequently used are agreements for the transfer of receivables, promissory notes and enforcement declarations. Additionally, the Group uses powers of attorney to bank accounts and assignments of receivables.

As at the reporting date, the following assets were used as collateral for repayment of liabilities or contingent liabilities:

As at December 31, 2021 As at December 31, 2020
Property, plant and equipment 911 900
Trade receivables 119 206

Property, plant and equipment presented in the table above are collaterals for repayment of drawn investment credits. The most significant item as at December 31, 2021 and as at December 31, 2020 is a capped mortgage on an 858 MW unit in PGE Górnictwo i Energetyka Konwencjonalna S.A.’s branch Elektrownia Bełchatów.

Pursuant to the regulations of clearinghouse IRGiT, PGE Group companies are required to maintain a certain balance of cash in accounts kept in PKO BP. Santander Bank Polska and Bank Polska Kasa Opieki S.A PEKAO SA hold customer funds. Cash reported as restricted cash under these two headings amounted to PLN 212 million as at December 31, 2021 (PLN 93 million in the comparative period).

In addition, financial receivables include funds for the Mine Liquidation Fund in the amount of PLN 194 million (PLN 185 million in the comparative period).

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