48. Contingent liabilities and off-balance sheet liabilities received and granted

As part of its operations, the Group enters into transactions that are not recognised as assets or liabilities in the statement of financial position when concluded but give rise to contingent liabilities. In accordance with IAS 37, the contingent liability is:

• a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group entities;
• a present obligation that arises from past events but is not recognised in the statement of financial position because it is not probable that an outflow of cash or other assets will be required to settle the obligation, or the amount of the obligation (liability) cannot be measured

For the principles of recognising provisions for off-balance sheet commitments granted, see the note „Provisions”.

Upon initial recognition financial guarantee agreements are stated at fair value. In subsequent periods, as at the balance sheet date, financial guarantees are measured at the higher of:

• allowances for expected credit losses; or
• the amount of commission recognized initially, less accumulated amortization in accordance with IFRS

As at 31 December 2022 and 31 December 2021, no underwriting agreements have been entered into.

For more information on credit risk exposures, see note “Credit risk – financial information”.