Tools
The Group uses a number of collateral and its combinations to secure the repayment of credit facilities. The most frequently used are agreements for the assignment of claims, promissory notes and declarations of submission to enforcement. Additionally, the Group uses the power of attorney to bank accounts and assignment of receivables.
As at the reporting date, the value of assets pledged as collateral for repayment of liabilities or contingent liabilities was as follows:
| As at December 31, 2019 | As at December 31, 2018 | |
|---|---|---|
| Property, plant and equipment | 830 | 881 |
| Inventories | 14 | 45 |
| Trade receivables | 216 | 62 |
| TOTAL VALUE OF ASSETS PLEDGED AS COLLATERAL FOR LIABILITIES | 1,060 | 988 |
Property, plant and equipment reported in the table above are pledged as collateral for investment credit facilities. The most significant item as at December 31, 2019 and December 31, 2018 is the ceiling mortgage over the 858 MW unit in PGE Górnictwo i Energetyka Konwencjonalna S.A., Branch Elektrownia Bełchatów.
Collateral established over inventories comprise mainly pledges related to loans received from environmental funds.
PGE Group companies are obliged to maintain a specific cash balance on its accounts held with PKO BP and Nordea Bank AB according to the rules of the Warsaw Commodity Clearing House and to participate in a guarantee fund. The balance of restricted cash resulting from these two obligations is PLN 256 million as at December 31, 2019 (PLN 98 million in the corresponding period).
