IBERSOL • 2023 Integrated Management Report
INTEGRATED MANAGEMENT REPORT 2023 Deposits in Angola are spread over four of the largest commercial banks in Angola – BFA, BCGA, ATL and BAI – but which do not have a rating. As at 31 December 2023, the Group has deposited Treasury Bonds with a rating of the Republic of Angola, Rating B3 (Moody`s), recorded for the amount of 1,580,739 euros, as detailed in note 8.. The credit quality of non-performing, non-impaired financial assets is detailed in Note 5.2. 7.4. Liquidity risk Liquidity risk management implies maintaining a sufficient amount of cash and bank deposits, the viability of consolidating floating debt through an adequate amount of credit facilities and the ability to liquidate market positions. Management of treasury needs is based on annual planning, which is reviewed quarterly and adjusted daily. In line with the dynamics of the underlying businesses, the Group’s Treasury has been managing flexibly commercial paper and negotiating lines of credit available at all times. For this purpose, it is considered that short-term bank loans mature on the renewal date and that commercial paper contracts expire on the termination dates, although renewal is usual. As at 31 December 2023, current liabilities amounted to 149 million euros, compared to 235 million in current assets. Without prejudice to the fact that this year, as a result of excess liquidity, the Group does not present a situation of current liabilities greater than current assets, a financial characteristic of this business, it is important to mention that current liabilities include some Commercial Paper programs, with clauses denunciation, in which reimbursement is considered on the date of denunciation, regardless of the terms for which they are contracted. On the other hand, circumstantially, the Group chooses to issue under shorter maturity contracts to the detriment of other longer maturity programs that remain unused and consequently with amounts available for coverage. Loans in the form of commercial paper issues are classified as non-current liabilities when they have placement guarantee for a period of more than one year and it is the intention of the Group’s Board of Directors to use this source of funding equally for a period of more than one year. The Group considers that the expected operating cash flows, the commercial paper not issued and the credit lines contracted but not used, are sufficient to settle all current liabilities. 467
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