42. Contingent liabilities and off-balance sheet liabilities received

42.1 Securities covered with underwriting agreements (maximum liability of the Group to acquire securities):

Issuer of securities underwritten Type of underwritten securities Off-balance sheetliabilities Contract period
As at 31 December 2015      
Company A corporate bonds 1 950 000 31.12.2020
Company B corporate bonds 1 055 000 31.07.2020
Company C corporate bonds 342 700 15.06.2022
Company D corporate bonds 80 600 31.12.2022
Company E corporate bonds 60 000 23.11.2021
Company F corporate bonds 28 224 31.12.2029
Company G corporate bonds 17 900 31.12.2026
Company H corporate bonds 4 424 31.01.2016
Company I corporate bonds 3 403 30.09.2030
Total   3 542 251  
As at 31 December 2014      
Company B corporate bonds 1 055 000 31.07.2020
Company C corporate bonds 1 049 000 15.06.2022
Company D corporate bonds 91 700 31.12.2022
Company J corporate bonds 50 000 19.12.2022
Total   2 245 700  

All contracts relates to the Agreement for Organisation, Conducting and Servicing of the Bond Issuance Programme.

All securities of the Bank under the sub-issue (underwriting) programme have an unlimited transferability, are not listed on the stock exchange and are not traded on a regulated OTC market.

42.2 Contractual commitments

As at 31 December 2015 the value of contractual commitments concerning intangible assets amounted to PLN 178 899 thousand (as at 31 December 2014 it amounted to PLN 200 662 thousand).

As at 31 December 2015 the value of contractual commitments concerning tangible fixed assets amounted to PLN 50 278 thousand (as at 31 December 2014 it amounted to PLN 96 772 thousand).

42.3 Loan commitments granted

By nominal value 31.12.2015 31.12.2014
Credit lines and limits    
to financial entities 2 306 177 533 975
to non-financial entities 36 157 856 34 540 558
to public entities 4 080 379 3 258 574
Total 42 544 412 38 333 107
of which: irrevocable loan commitments 30 513 878 27 730 846

42.4 Guarantee liabilities granted

  31.12.2015 31.12.2014
Guarantees in domestic and foreign trading 7 555 837 9 248 321
to financial entities 85 504 160 298
to non-financial entities 7 463 037 9 066 109
to public entities 7 296 21 914
Guarantees and pledges granted – domestic corporate bonds 5 430 649 4 516 150
to non-financial entities 4 930 649 4 514 050
to financial entities 500 000 2 100
Letters of credit granted 1 838 101 702 768
to non-financial entities 1 838 000 702 768
to public entities 101 -
Guarantees and pledges granted – payment guarantee to financial entities 143 646 17 278
Guarantees and pledges granted – domestic municipal bonds to public entities 59 320 55 008
Total 15 027 553 14 539 525
of which: good performance guarantees granted 2 378 395 1 942 582

In the years ended on 31 December 2015 and 31 December 2014 respectively, the Bank and its subsidiaries did not issue any guarantees in respect of loans or advances and did not issue any guarantees to a subsidiary or other entity thereof with a total value accounting for 10% of the Group’s equity.

Information on provisions for off-balance sheet financial liabilities and guarantees is included in the note 40 ‘Provisions’.

42.5 Liabilities granted by maturity

31 December 2015

  up to 1 month 1 - 3 months 3 months- 1 year 1 - 5 years Over 5 years Total
Financial liabilities granted 28 969 262 814 785 3 746 741 2 897 444 6 116 180 42 544 412
Guarantee liabilities granted 1 415 091 1 604 025 2 220 096 9 113 673 674 668 15 027 553
Total 30 384 353 2 418 810 5 966 837 12 011 117 6 790 848 57 571 965

31 December 2014

  up to 1 month 1 - 3 months 3 months- 1 year 1 - 5 years Over 5 years Total
Financial liabilities granted 23 931 316 958 392 4 627 057 3 832 809 4 983 533 38 333 107
Guarantee liabilities granted 225 396 1 336 294 2 552 934 8 595 674 1 829 227 14 539 525
Total 24 156 712 2 294 686 7 179 991 12 428 483 6 812 760 52 872 632

42.6 Off-balance sheet liabilities received

By nominal value 31.12.2015 31.12.2014
Financial 505 350 2 004 673
Guarantees* 6 831 132 4 725 751
Total 7 336 482 6 730 424

* The position off-balance sheet guarantees received includes mainly guarantees under the programme to support micro, small and medium-sized enterprises - a guarantee of de minimis.

Due to the provisions of the Agreement which require the Nordea Bank AB (publ) Group to participate in the default risk of the Mortgage Portfolio, on 1 April 2014, PKO Bank Polski SA and Nordea Bank AB (publ) concluded a special indemnity agreement (the ‘Special Indemnity Agreement’), according to which Nordea Bank AB (publ) will cover, for a period of 4 years following the Closing Date, 50% of the excess of the Mortgage Portfolio cost of risk excess over the annual cost of risk set at 40 basis points for each year of the above-mentioned four-year contract period of the Special Indemnity Agreement.

As a part of works related to the settlement of the transaction, the Bank has made a valuation of the Special Indemnity Agreement on the basis of conducted analysis of probability of cash flows arising from the Agreement. The estimated expected value is zero.

Right to sell or pledge collateral established for the Group.

As at 31 December 2015 and as at 31 December 2014, there was no collateral established for the Group which the Group was entitled to sell or encumber with another pledge in the event of fulfilment of all obligations by the owner of the collateral.