Annual report 2005 - Sava dd

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SAVA GROUP
Structure of mutual crediting
at 31/12/2005
Credits granted by Sava d.d. to
subsidiaries of the Sava Group
Credits granted by subsidiaries
to the parent company Sava d.d.
The brisk investment activity of Group companies in
2005 dictated a higher long-term indebtedness. This was
utilised to redesign the credit portfolio. The structure of
indebtedness with loans changed in favour of
indebtedness in foreign currency, which at the year end
represented more than 76 per cent of the total figure.
The reason lies in prices, for contracting debts in foreign
currency in Slovenia and abroad was cheaper than in
SAVA GROUP
Currency structure of the
credit portfolio
(in %)
Tolar loans
Foreign currency loans
Due to approaching the European monetary union we
began to redesign the credit portfolio in 2005 so as to
increase the share of euro loans. At the end of 2005
(44%) (56%)
tolars. Another important issue was that Slovenia is
nearing the European monetary union. With this change
a large portion of indebtedness with loans became
bound to the EURIBOR variable interest rate, which
demands serious planning to apply one of the
instruments for insurance against such an interest rate
(IRS).
63.25
36.75
23.60
76.40
31/12/2004 31/12/2005
these loans exceeded three quarters of the total credit
portfolio.