16. Cash and balances with the central bank

Cash and balances with the central bank

Current account in the central bank 7,772,859 4,018,340
Cash 3,965,456 3,227,330
Other funds 56 450
Total 11,738,371 7,246,120

Obligatory reserve

During the course of the working day, the Bank may use funds from the obligatory reserve account for ongoing payments, on the basis of an instruction submitted to the Central Bank of Poland (NBP). However, the Bank must ensure that the average monthly balance on this account complies with the requirements set in the obligatory reserve declaration.

Funds on the obligatory reserve account bear interest of 0.9 of the reference rate. As at 31 December 2014, this interest rate was 1.8%. As at 31 December 2013 funds on the obligatory reserve account bear interest of 0.9 of the rediscount rate for bills of exchange and this interest rate was 2.475%.

Restricted cash:

Cash pledged in the amount of PLN 11 440 thousand (PLN 17 449 thousand as at 31 December 2013) as collateral for securities' transactions conducted by the Brokerage House of PKO BP SA are deposited in the National Depository for Securities KDPW_CCP as part of the Guarantee Fund for the Settlement of Stock Exchange Transactions. Each direct participant who holds the status of settlements-making participant is obliged to make payments to the settlement fund which guarantees a proper settlement of the stock exchange transactions covered by that fund. The amount of the payments depends on the value of transactions made by each participant and is updated by KDPW_CCP on a daily basis.

As at 31 December 2013 the Bank had restricted cash as a part of issuance stabilising actions for the selling shareholder in the amount of PLN 14 629 thousand, blocked on the stabilisation manager’s account. As at 31 December 2014 there was no such cash.

In the statement of cash flows, these funds are presented as restricted cash. As at 31 December 2014 and 31 December 2013 their value amounted to PLN 11 440 thousand and PLN 32 078 thousand respectively.

Cash and cash equivalents

Amounts on the current account in the Central Bank, cash and other are entirely treated as cash and cash equivalents for the purposes of the statement of cash flows.