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39. Unforeseen obligationsThe Group intends to continue the dispute in order to collect the remaining 10 million USD, but as of the date ofpublication of these financial reports, a specific hearing date for this claim or potential liability has not been set. TheGroup will register the amount once it is released and paid to the Group.40. Financial instruments and risk managementGearing ratioINA d.d. and INA Group’s Treasury analyzes the structure of capital at semiannual level.As a part of this analysis, the Treasury analyzes the capital cost and risk related to each capital itemThe gearing ratio at the balance sheet date was as follows:INA GroupINA d.d.2007 2006 2007 2006Debt: 4,923 3,938 3,130 2,037Long term loans 3,130 1,425 2,988 1,372Short term loans 1,664 1,935 97 159Current part of long-term liabilities 129 578 45 506Money and money equivalents (720) (630) (299) (226)Net debt 4,203 3,308 2,831 1,811Equity 13,643 12,786 12,591 11,569Debt-to-capital ratio 31% 26% 22% 16%Fundamental accounting policiesThe fundamental accounting policies and the methods adopted, including recognition criteria, the basis of valuationand the basis for recognizing income and expenditure for each class of financial assets, financial liabilities and principalinstruments, are listed in detail in note 2 attached to financial reports.Financial instrument categoriesINA GroupINA d.d.Financial assetsLoans and receivables(including money and money equivalents)2007 2006 2007 20064,643 4,063 3,970 3,525Financial assets available for sale 656 436 656 436Financial liabilitiesDepreciation cost 8,455 6,838 8,102 6,513Financial guarantees contract 596 380 596 380158 Financial report