72. Information on securitisation of lease portfolio and portfolio sale of receivables

In connection with the acquisition of Raiffeisen-Leasing Polska SA and its subsidiaries (for details, see note Acquisition of Raiffeisen-Leasing Polska SA by PKO Leasing SA), the Group consolidated a special purpose vehicle ROOF Poland Leasing 2014 DAC with its registered office in Ireland. The SPV is buying securitized receivables resulting from lease agreements sold by Raiffeisen-Leasing Polska SA under the securitization plan which was initiated in December 2014. The receivables acquired by the SPV were financed by an issue of securities. The objective and benefit of selling these receivables to the SPV was to obtain and diversify sources of long-term financing.

The carrying values of the financial assets covered by the securitization plan are presented in the table below:

31.12.2016transaction valueAmount of risk remaining in the Group
Carrying amount of assets1 376.31 376.3
Carrying amount of liabilities1 260.61 260.6
Net balance115.7115.7

Moreover, in 2016 the Group performed sales of impaired loan portfolios (balance sheet and off-balance sheet receivables) of more than 38 thousand individual receivables from retail and business customers amounting to approximately PLN 2 103 million. The total carrying amount of the provision for potential claims on sale of impaired loan portfolios as at 31 December 2016 amounted to PLN 2.9 million (as at 31 December 2015 it was PLN 2.1 million). As a result of loan sale all risks and rewards were transferred, hence the Group derecognised these assets. The Group did not receive any securities on account of the above-mentioned transactions.