8.5. CONTINGENT ASSETS AND LIABILITIES
|
Contingent asset
|
2019
|
2018
|
|
Estimated amount |
|
|
Promissory notes received
|
-
|
1
|
|
Grants awarded
|
187
|
218
|
|
Other contingent assets
|
14
|
14
|
|
Total
|
201
|
233
|
The carrying amount of contingent assets in the reporting period was mainly attributable to the co-financing granted to Polska Spółka Gazownictwa Sp. z o.o. for the construction of gas pipelines as part of the gas network roll-out process.
|
Contingent liabilities
|
2019
|
2018
|
|
Estimated amount |
|
|
Guarantees and sureties
|
3,808
|
3,504
|
|
Promissory notes
|
552
|
784
|
|
Other
|
11
|
8
|
|
Total
|
4,371
|
4,296
|
As at the end of 2019, the largest item of contingent liabilities was a guarantee issued by the parent for the benefit of the Norwegian State in connection with the PUN’s work on the Norwegian continental shelf, whose carrying amount as at the end of 2019 was PLN 2,672m (translated into PLN) (year-end 2018: PLN 2,698m) and was disclosed under Guarantee and sureties.
The increase in contingent liabilities under guarantees and sureties provided in the current period was primarily attributable to the issuance of new performance bonds securing gas supplies, and provision of sureties to secure repayment of the Group companies’ liabilities under credit facility agreements.
Following an analysis of the probability of an outflow of economic benefits as at the reporting date, the carrying amount of the Group’s contingent liabilities under promissory notes issued as at the end of 2019 was reduced.