IBERSOL | Annual Report 2021

ANNUAL REPORT 2021 Deposits in Angola are distributed by four of the largest commercial banks in An- gola - BFA, BCGA, ATL and BAI - but which do not have a rating. As at 31st Decem- ber 2021, the Group has deposited Treasury Bonds with a rating of the Republic of Angola, Rating B3 (Moody`s), recorded in the amount of 2,179,956 euros, as detailed in note 11. The quality of financial assets not due or impaired is detailed in Note 15. c) Liquidity risk Liquidity risk management implies maintaining a sufficient amount of cash and bank deposits, the feasibility of consolidating the floating debt through a suitable amount of credit facilities and the capacity to liquidate market positions. Treasury needs are managed based on the annual plan that is reviewed every quarter and adjusted daily. Related with the dynamics of the underlying business operations, the Group’s treas- ury strives to maintain the floating debt flexible by maintaining credit lines available. For this purpose, short-term bank loans are considered to expire on the renewal date and that commercial paper contracts expire on the termination dates, although renewal is usual. At the end of the year, current liabilities reached 136 million Euros, compared with 141 million Euros in current assets. Without prejudice to the fact that this year, as a result of excess liquidity, the Group does not present a situation of current liabilities greater than current assets, a financial characteristic of this business, it is impor- tant to note that current liabilities include some Commercial Paper programs, with termination clauses, in which reimbursement on the termination date is considered regardless of the terms for which they are contracted. On the other hand, circum- stantially the option for issuance under contracts of lesser maturity at the expense of other programs of greater maturity that are left unused and consequently with amounts available for coverage. Loans in the form of commercial paper issues are classified as non-current liabilities when they are guaranteed to be placed for a period of more than one year and it is the intention of the Group’s Board of Directors to use this funding source for a period of more than one year. The Group considers the expected operating cash flows and, if necessary, the com- mercial paper and the contracted credit lines, the amounts of which have not yet been used, are sufficient to settle all current liabilities. On 31st December 2021, the Group had Commercial Paper Programs and unused medium and long-term lines of 24 million Euros and unused short term liquidity cash flow amounted to 14 million Euros. Investments in term deposits and other applica- tion of 94 million Euros, match 54% of liabilities paid. 363