7.3.1. Credit risk
The PGNiG Group’s credit exposure arises mostly in connection with the following items:
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Maximum risk exposure, equal to the carrying amount of the item | 2016 | 2015 |
---|---|---|
Cash and cash equivalents (cash at banks and bank deposits) | 5,829 | 6,022 |
Non-current restricted cash | 190 | 217 |
Trade receivables | 3,516 | 2,541 |
Loans advanced | 249 | 215 |
Positive value of derivative financial instruments | 623 | 709 |
Total | 10,407 | 9,704 |
As a rule, the Group concludes transactions in financial instruments with multiple entities with high creditworthiness. The key criteria applied by the Group in the selection of trading partners include their financial standing as confirmed by rating agencies, as well as their respective market shares and reputation.
Credit risk exposure associated with the individual items specified above is determined by reference to the carrying amounts of those items.