Notes to Consolidated Financial Statements continued Thousands of Georgian Lari 29. Maturity Analysis of Financial Assets and Liabilities continued 2016 On Up to Up to Up to Up to Up to Over demand 3 months 6 months 1 year 3 years 5 years 5 years Total Financial assets Cash and cash equivalents 1,115,012 458,598 – – – – – 1,573,610 Amounts due from credit institutions 944,403 14,334 19,913 69,842 5,094 – 1,397 1,054,983 Investment securities 109,868 1,080,617 38,414 11,488 6,269 38,971 376 1,286,003 Loans to customers and finance lease receivables – 1,124,962 501,429 1,520,939 1,765,099 810,045 926,008 6,648,482 Total 2,169,283 2,678,511 559,756 1,602,269 1,776,462 849,016 927,781 10,563,078 Financial liabilities Client deposits and notes 1,004,823 876,865 550,296 2,462,509 408,091 54,055 26,059 5,382,698 Amounts owed to credit institutions 330,899 1,373,489 176,065 358,190 582,783 299,309 349,356 3,470,091 Debt securities issued – 82,247 34,338 70,208 271,276 87,892 709,682 1,255,643 Total 1,335,722 2,332,601 760,699 2,890,907 1,262,150 441,256 1,085,097 10,108,432 Net 833,561 345,910 (200,943) (1,288,638) 514,312 407,760 (157,316) 454,646 Accumulated gap 833,561 1,179,471 978,528 (310,110) 204,202 611,962 454,646 The Group’s capability to discharge its liabilities relies on its ability to realise equivalent assets within the same period of time. In the Georgian marketplace, where most of the Group’s business is concentrated, many short-term credits are granted with the expectation of renewing the loans at maturity. As such, the ultimate maturity of assets may be different from the analysis presented above. To reflect the historical stability of current accounts, the Group calculates the minimal daily balance of current accounts over the past two years and includes the amount in the up to 1 year category in the table above. The remaining current accounts are included in the On demand category. The Group’s principal sources of liquidity are as follows: • deposits; • borrowings from international credit institutions; • inter-bank deposit agreements; • debt issues; • proceeds from sale of securities; • principal repayments on loans; • interest income; and • fees and commissions income. As at 31 December 2018 client deposits and notes amounted to GEL 8,133,853 (2017: GEL 6,712,482, 2016: GEL 5,382,698) and represented 63% (2017: 54%, 2016: 51%) of the Group’s total liabilities. These funds continue to provide a majority of the Group’s funding and represent a diversified and stable source of funds. As at 31 December 2018 amounts owed to credit institutions amounted to GEL 2,994,879 (2017: GEL 3,155,839, 2016: GEL 3,470,091) and represented 23% (2017: 25%, 2016: 33%) of total liabilities. As at 31 December 2018 debt securities issued amounted to GEL 1,730,414 (2017: GEL 1,709,152, 2016: GEL 1,255,643) and represented 13% (2017: 14%, 2016: 12%) of total liabilities. In the Board’s opinion, liquidity is sufficient to meet the Group’s present requirements. 278 Annual Report 2018Bank of Georgia Group PLC