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40. Financial instruments and risk managementThe greatest credit risk concentration refers to stateinstitutions and customers in state ownership. Since INAGroup is itself in majority state ownership, the credit riskis significantly dependent on the policy of the CroatianGovernment.INA d.d. does not have a significant credit exposure notcovered by insurance instruments, except with respectto the above institutions and companies in majoritystate ownership. Therefore, receivables from the aboveinstitutions and customers in majority state ownershippose a real credit risk, just below 5% of the total receivableson the balance sheet date.Solvency risk managementThe responsibility for solvency risk management is withthe Management Board, which sets the appropriateframework for solvency risk management, with thepurpose of managing short-term and long-term financingand solvency requirements. The Group manages thesolvency risk maintaining adequate reserves and creditlines, continuously comparing the planned and achievedflow of funds, while monitoring the maturity of assetsand liabilities.Table analysis of solvency risks and interest rate risksThe tables below show the maturities of INA d.d. and INAGroup’s contractual obligations given in the balance sheetat the end of the period. The tables were made on thebasis of non-discounted monetary outflows by financialliabilities on the due date. The tables show money flowsby principal and interest.INA d.d. interest-free liabilities up to one month mostlyconsist of liabilities to suppliers in the amount of 2,305million HRK for 2007 (2,002 million HRK in 2006) andliabilities for taxes and contributions in the amount of 535million HRK (478 million HRK in 2006).INA Group2007Up to 1monthFrom 1 to3 monthsFrom 3 to4 monthsFrom 4monthsto 1 yearFrom 1to 5 yearsAfter5 yearsInterest-free liabilities 3,354 1,161 - 194 - 1,641 6,350Interest-bearing liabilities - 161 - 1,632 3,130 - 4,9232006Total3,354 1,322 - 1,826 3,130 1,641 11,273Interest-free liabilities 3,274 617 - 162 - 1411 5,464Interest-bearing liabilities - 197 - 2,316 1,425 - 3,9383,274 814 - 2,478 1,425 1,411 9,402INA d.d.2007Up to 1monthFrom 1 to3 monthsFrom 3 to4 monthsFrom 4monthsto 1 yearFrom 1to 5 yearsAfter5 yearsInterest-free liabilities 2,860 784 - 97 - 1,539 5,280Interest-bearing liabilities - 98 1,982 45 2,988 - 5,1132006Total2,860 882 1,982 142 2,988 1,539 10,393Interest-free liabilities 2,619 487 - 121 - 1,323 4,550Interest-bearing liabilities - 159 2,137 506 1,372 - 4,1742,619 646 2,137 627 1,372 1,323 8,724162 Financial report