Bank deposits
In 2015, the Group’s short-term funds were primarily held in a current account with PKO Bank Polski S.A., linked under virtual cash pooling with the individual Group companies’ sublimits under overdraft facilities. The arrangement enables optimisation of interest incomes and expenses within the Group.
Moreover, the Group companies maintained other free cash in short-term deposits held with reputable banking institutions offering highest interest rates, in particular rates above the 1M WIBOR rate per annum, applicable to amounts netted off as part of the cash-pooling arrangement.
As at December 31st 2015, the Group companies held a total of PLN 1,240,717 thousand in bank accounts and short-term deposits, of which PLN 151,350 thousand was held in the current account with PKO Bank Polski S.A. linked with the virtual cash pooling.
As at December 31st 2015, all of the above funds were presented in the Group’s consolidated financial statements in the following items:
- cash and cash equivalents – PLN 753,144 thousand (maturing in up to 3 months);
- other current financial assets – PLN 487,573 thousand (maturing in more than 3 months but less than 1 year).
The Group earned a total of PLN 13,887 thousand in interest income on fixed-term deposits and from virtual cash pooling of funds deposited in accounts held with PKO BP.
