Notes to the consolidated financial statements

 
The Group uses cash in the current account at Central Bank to cover the required reserve and carry out current cash settlements during a given day. The Group, however, has to provide an average monthly level of cash in the account in order to satisfy the minimum reserves requirements declared.
The Group maintains a mandatory provision of 3.5% of deposits received in the current account with the National Bank of Poland. The arithmetic average of the mandatory provision maintained with the National Bank of Poland amounted to:

• PLN 206,213 thousand in the period from 31 December 2013 to 30 January 2014;
• PLN 216,147 thousand in the period from 31 December 2014 to 1 February 2015.

A considerable portion of cash in the current account in the Central Bank include short-term transfers from Poczta Polska S.A., in particular:

• retirement and disability allowances, transfered by Poczta Polska S.A. to pensioners and individuals entitled to disability allowances in cash;
• mass payments, such as public utility bills paid through the sales network of Poczta Polska S.A.;
• own funds of Poczta Polska S.A., mainly overnight deposits.

The funds’s volatility is high and reaches several hundred million zlotys during one month, which results in considerable changes in the balance sheet total of the Group at individual balance sheet dates.
Transfer payments from Poczta Polska S.A. are not recognized in the calculation of the stable deposit base used to finance the core activities of the Group.