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Notes to the consolidated financial statements

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38.Operating leases

Group as a lessee

The Group is a party to lease agreements under which it uses third-party fixed assets and derives economic benefits therefrom for a contractual period of time in return for a payment.

Operating lease agreements with the Group as the lessee:

• lease of space - the standard term of these agreements is 5 years with a rollover option;
• lease of cars – the term of these agreements is 48 months (the leased assets may be bought at a price similar to the market price).

Agreements concluded for an indefinite term have been taken into account based on the notice period. Certain agreements also introduce inflation-based lease payments. Non-cancellable subleases did not occur.

As at the end of the reporting period, the Group was a party to two significant operating lease agreements concerning space:

• master agreement for the lease of real estate of Poczta Polska S.A. by Bank Pocztowy S.A. entered into on 2 September 2011. The agreement covers the lease of space for the Bank’s sales points. The agreement has been concluded for five years. If neither party terminates the agreement twelve months before the end of the agreement period at the latest, after the end of the original five-year period the master agreement shall become an agreement with an indefinite term which can be terminated with an 18-month notice period. In the period covered by these consolidated financial statements, the Bank did not terminate the agreement, which therefore has become the one concluded for an indefinite period.  Lease agreements for individual sales points of the Bank are concluded in line with the terms of the master agreement.
• lease agreement concerning office space for the Bank’s head office in Warsaw. The agreement was concluded on 21 May 2013 for a fixed term (until 14 June 2019) and it may be extended for another five years.

Future minimum lease payments under non-cancellable operating leases as at 31 December 2016 and 31 December 2015:

The Group as a lessor

The Group is a party to lease agreements under which it offers its own fixed assets and economic benefits to be derived therefrom for an agreed period of time in return for a payment.

Operating lease agreements, where the Group acts a lessor, concern mainly the lease of space and office space for the head office in Bydgoszcz. The agreements have been concluded for an indefinite term.

Agreements concluded for an indefinite term have been taken into account based on the notice period. Certain agreements also introduce inflation-based lease payments. Non-cancellable subleases did not occur.

Future minimum lease payments under non-cancellable operating leases as at 31 December 2016 and 31 December 2015: