IBERSOL Annual Report 2018

ANNUAL REPORT 2018 Deposits in Angola are distributed by three of the largest commercial banks in An- gola - BFA, BCGA, ATL and BAI - but which do not have a rating. The quality of financial assets not due or impaired is detailed in Note 15. c) Liquidity risk Liquidity risk management implies maintaining a sufficient amount of cash and bank deposits, the feasibility of consolidating the floating debt through a suitable amount of credit facilities and the capacity to liquidate market positions. Treasury needs are managed based on the annual plan that is reviewed every quarter and adjusted daily. Related with the dynamics of the underlying business operations, the group’s treas- ury strives to maintain the floating debt flexible by maintaining credit lines available. The Group considers that the short-term bank loans are due on the renewal date and that the commercial paper programmes matured on the dates of denunciation. At the end of the year, current liabilities reached 148 million euros, compared with 85 million euros in current assets. This disequilibrium is, on one hand, a financial characteristic of this business and, on the other hand, due to the use of commercial paper programmes in witch the Group considers the maturity date as the renewal date, regardless of its initial stated periods. In order to ensure liquidity of the short term debt it is expected in the year 2019 the renewal of the commercial paper pro- grammes (17.500.000 euros). However, the expected operating cash flows and, if necessary, contracted credit lines, on the amounts of which have not yet been used, are sufficient to settle current liabilities. Even with reduced use of the group has contracted a significant amount of short- term lines. On December 31, 2018, the use of short term liquidity cash flow support was about 28%. Investments in term deposits and other application of 35 million euros, match 26% of liabilities paid. The following table shows the Group financial liabilities (relevant items), considering contractual cash-flows: 237