Transactions
with the State Treasury
and related entities

The State Treasury has control over the parent entity of the Group as it holds a 40.99% interest in the Bank’s share capital. The Bank’s shareholding structure is described in detail in Note 1 ‘General Information’ to these financial statements.

Receivables, securities and liabilities arising from transactions conducted with the State Treasury and other state budgetary agencies are disclosed in the Group’s statement of financial position.

In accordance with the 30 November 1995 Act in relation to State support in the repayment of certain housing loans, reimbursement of guarantee premium paid and amendments of several acts (Journal of Laws, 2003, No. 119, item 1115 with subsequent amendments) PKO Bank Polski SA receives payments from the State budget in respect of interest receivable on housing loans.

  2011 2010
Income due to temporary redemption by the State budget of interest on housing loans from the ‘old’ portfolio recognised for this period 152 960 120 371
Income due to temporary redemption by the State budget of interest on housing loans from the ‘old’ portfolio received in cash 106 392 106 608
Difference between income recognised for this period and income received in cash – ‘Loans and advances to customers’ 46 568 13 763

The Act on the coverage of repayment of certain housing loans by State Treasury (Journal of Laws, 2000, No. 122, item 1310 with subsequent amendments) guarantees was passed on 29 November 2000 and came into force on 1 January 2001. In execution of the provisions of the Act, on 3 August 2001 PKO Bank Polski SA signed an agreement with the Minister of Finance acting on behalf of the State Treasury under which the Bank was granted a pledge of repayment of debt arising from housing loans in the so-called ‘old’ portfolio. On 29 December 2011, the validity period of the agreement (originally until 31 December 2011) was extended until 31 December 2017. The coverage of the so called ‘old portfolio’ housing loan receivables by the guarantees of the State Treasury results in the neutralisation of the default risk on these loans. The State Treasury guarantees are realised when a borrower fails to repay the loan on the dates specified in the loan agreement. The responsibility of the State Treasury is of an auxiliary nature and is effective if the recovery of the unpaid part of principal and interest which the Bank is obliged to commence, before the Bank lays claims to the State Treasury, becomes ineffective. The above-mentioned law covers 90% of unpaid loans taken out by housing cooperatives. As a consequence of the realisation of the State Treasury’s responsibilities as guarantor, the State Treasury itself enters into the rights of the satisfied creditor (the Bank) and thus becomes a creditor towards the borrower, in line with the concept of guarantee.

PKO Bank Polski SA receives commission for settlements relating to redemption of interest by the State Treasury on housing loans.

  2011 2010
Fee and commission income 4 578 6 590

As of 1 January 1996 the Bank became the general distributor of court fee stamps. The Bank receives commissions in this respect from the State Treasury.

  2011 2010
Fee and commission income 18 625 26 255

Dom Maklerski PKO Bank Polski SA (the brokerage house of PKO Bank Polski SA) performs the role of an agent for the issue of retail Treasury bonds under the agreement signed between the Ministry of Finance as the issuer and PKO Bank Polski SA on 11 February 2003. Under this agreement, Dom Maklerski PKO Bank Polski SA receives a fee for providing the services of an agent for the issue of bonds.

  2011 2010
Fee and commission income 29 669 31 842

Significant transactions of PKO Bank Polski SA with the State Treasury’s related entities

The transactions were concluded at arm’s length.


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As at 31 December 2011 and 31 December 2010, no significant impairment allowances were recognised for above-mentioned receivables.