Strategic Report Strategic Report Strategic Report Financial Additional Overview Strategy Performance Governance Statements Information 7. Cash and Cash Equivalents 2018 2017 2016 Cash on hand 502,060 447,807 450,264 Current accounts with central banks, excluding obligatory reserves 298,788 91,692 150,152 Current accounts with credit institutions 243,622 278,978 540,801 Time deposits with credit institutions with maturities of up to 90 days 171,471 763,958 432,393 Cash and cash equivalents 1,215,941 1,582,435 1,573,610 Less – Allowance for expected credit loss/impairment loss (142) – – Cash and cash equivalents 1,215,799 1,582,435 1,573,610 As at 31 December 2018, GEL 316,083 (2017: GEL 932,030, 2016: GEL 837,721) was placed on current and time deposit accounts with internationally recognised OECD banks and central banks that are the counterparties of the Group in performing international settlements. The Group earned up to 3.00% interest per annum on these deposits (2017: up to 2.00%, 2016: up to 0.90%). Management does not expect any losses from non-performance by the counterparties holding cash and cash equivalents, and there are no material differences between their book and fair values. As at 31 December 2018, cash and cash equivalents held by BOGG of GEL 1,748 (2017: Nil) is represented by placements on current accounts with Georgian and the Organisation for Economic Co-operation and Development (“OECD”) banks. 8. Amounts Due from Credit Institutions 2018 2017 2016 Obligatory reserves with central banks 1,244,885 1,000,566 934,997 Time deposits with maturities of more than 90 days 43,484 218,831 113,035 Deposits pledged as security for open commitments – – 3,287 Inter-bank loan receivables 17,586 6,550 3,664 Amounts due from credit institutions 1,305,955 1,225,947 1,054,983 Less – Allowance for expected credit loss/ pai entoss (739) – – Amounts due from credit institutions 1,305,216 1,225,947 1,054,983 Obligatory reserves with central banks represent amounts deposited with the NBG and National Bank of the Republic of Belarus (the “NBRB”). Credit institutions are required to maintain cash deposits (obligatory reserve) with the NBG and with the NBRB, the amount of which depends on the level of funds attracted by the credit institution. The Group’s ability to withdraw these deposits is restricted by regulation. The Group earned up to 1.00% interest on obligatory reserves with NBG and NBRB for the years ended 31 December 2018 (2017: 1.00%, 2016: 0.25%). As at 31 December 2018, inter-bank loan receivables include GEL 17,586 (2017: GEL 6,550, 2016: GEL 2,164) placed with non-OECD banks. Annual Report 2018Bank of Georgia Group PLC 217