Annual Report 2015

22. Assets pledged, commitments and other liabilities

 

Pledges given for Group companies

2015

2014

Guarantees

225,930,060.00

107,227,356.00

Total

225,930,060.00

107,227,356.00

     

Pledges given for others

   

Guarantees

   

Others

100,000.00

100,000.00

Total

100,000.00

100,000.00

     

Lease contracts unpaid amounts

   

Payable within one year

153,460.80

291,282.54

Payable in later years

170,133.32

383,471.86

Total

323,594.12

674,754.40

     

Rental liabilities

815.00

815.00

     

Other commitments

26,424.00

26,424.00

     

Derivative contracts

   
     

Currency forward contracts

   

Fair value

28,182.99

1,939,699.18

Nominal value

8,561,928.25

47,867,325.04

     

Interest rate swaps

   

Fair value

1,897,236.73

3,861,456.02

Nominal value

70,000,000.00

70,000,000.00

     

Derivative instruments are used for hedging the foreign exchange rate risk and currency risk and they are valued at the market rates available on the balance sheet date. Currency forward contracts are used to hedge against currency-denominated receivables and payables. Generally, transaction positions arising from subsidiary financing are hedged fully. A portion of the company’s fixed-interest loan has been converted to variable-interest loan with an interest-rate swap.

     

Other commitments

   
     

On September 18, 2015, the District Court of Helsinki issued a positive ruling in favor of Posti regarding a dispute concerning the refund of value added taxes. Posti is not deemed liable to compensate value added taxes paid by its customers. Posti’s contract customers filed a claim for the damage of value added taxes of postal services totaling a little over EUR 100 million. According to the District Court, including the VAT in the postal services referred to in the case was not contrary to EU law. The plaintiffs consisted of seven large-scale financing and insurance institutions. The plaintiffs, except one of them, have appealed to the Helsinki Court of Appeal.