40. Provisions

40. Provisions [1]

Provisions for legal claims are described in note 43 [2] “Litigation”.

Details on the provisions for off-balance sheet loan commitments granted are described in the note 56.9 [3] ‘Off-balance sheet exposures provisions’ and note 2.15 [4] “Contingent liabilities”.

Other provisions mainly include restructuring provision, and provisions for potential claims on impaired loans portfolios sold more on which has been presented in the note 75 [5] ‘Information on loan bundle sale’.

For the period ended 31 December 2015	Provision for legal claims	Provisions for retirement benefits and anniversary bonuses	Provisions for loan commitments and guarantees granted	Other provisions*	Total
As at 1 January 2015, of which:	47 480	39 847	103 844	132 667	323 838
Short term provision	47 165	3 141	73 707	132 667	256 680
Long term provision	315	36 706	30 137	-	67 158
Take of control over subsidiaries	2 343	128	-	-	2 471
Increase/reassessment of provisions	21 577	3 497	286 210	3 454	314 738
Release of provisions	(33 406)	(1 764)	(304 233)	(7 655)	(347 058)
Use of provisions	(29 303)	(38)	-	(27 532)	(56 873)
Currency translation differences	(38)	-	(57)	-	(95)
Other changes and reclassifications	13 716	4 363	(3 026)	20	15 073
As at 31 December 2015, of which:	22 369	46 033	82 738	100 954	252 094
Short term provision	22 054	3 575	64 045	100 954	190 628
Long term provision	315	42 458	18 693	-	61 466

* Included in ‘Other provisions’ are i.e.: restructuring provision of PLN 67 410 thousand and provision for potential claims on impaired loan portfolios sold in the amount of PLN 2 069 thousand, provisions for litigation, including judicial, which are the subject of compensation in the amount of PLN 479 thousand.

provisions_1_pkobp.xlsx [6]

For the period ended 31 December 2014	Provision for legal claims	Provisions for retirement benefits and anniversary bonuses	Provisions for loan commitments and guarantees granted	Other provisions*	Total
As at 1 January 2014, of which:	36 289	35 739	115 314	133 528	320 870
Short term provision	36 289	2 458	88 464	133 528	260 739
Long term provision	-	33 281	26 850	-	60 131
Take of control over subsidiaries	11 798	12 570	8 473	3 329	36 170
Increase/reassessment of provisions	11 472	4 693	383 509	10 380	410 054
Release of provisions	(3 782)	(7 520)	(406 626)	(7 530)	(425 458)
Use of provisions	(625)	(6 881)	-	(3 047)	(10 553)
Currency translation differences	(131)	-	(49)	-	(180)
Other changes and reclassifications	(7 541)	1 246	3 223	(3 993)	(7 065)
As at 31 December 2014, of which:	47 480	39 847	103 844	132 667	323 838
Short term provision	47 165	3 141	73 707	132 667	256 680
Long term provision	315	36 706	30 137	-	67 158

* Included in ‘Other provisions’ are i.a.: restructuring provision of PLN 93 557 thousand and provision of PLN 1 785 thousand for potential claims on impaired loan portfolios sold.

provisions_2_pkobp.xlsx [7]

Provisions for legal claims were recognised in the amount of expected outflow of economic benefits.