24.5 Security for payment of receivables and payables

In order to secure the repayment of its credits, the Group uses a number of individual security instruments and their combinations. The most frequently used instruments include claims transfer agreements, bills of exchange and declarations of voluntary submissions to enforcement procedures. Additionally, the Group uses powers of attorney to use bank accounts and assignments of receivables.

As at the reporting date the following assets constituted security for the repayment of liabilities and contingent liabilities:

As described in note 32.5 to these financial statements, the PKP Energetyka Group was acquired in the current period. This group had a registered pledge to a syndicated credit agreement in the amount of PLN 5,425 million. In view of the full repayment of the above credit, as at 31 December 2023 the registered pledge was no longer in force, but was in the process of being removed from the register of pledges.

In accordance with the regulations of the Warsaw Commodity Clearing House, companies belonging to the PGE Capital Group are obliged to maintain a certain balance of cash in accounts held with PKO BP. Cash from customers is held at PKO BP, Santander Bank Polska and Bank Polska Kasa Opieki S.A. The balance of cash reported as restricted cash under these two obligations amounted to PLN 419 million as at 31 December 2023 (PLN 295 million in the comparative period).

In addition, financial receivables include funds for the MPLF in the amount of PLN 240 million (PLN 214 million in the comparative period).