Cash flows and the Group’s credit line needs are managed in order to guarantee
- an effective and efficient management of the financial resources
- the optimisation of debt’s maturity standpoint
Liquidity risk and capitals management
The liquidity risk arises from the possibility that available financial resources are not sufficient to cover, in due times and procedures, future payments arising from financial and/or commercial obligations. To deal with these risks, cash flows and the Group’s credit line needs are monitored or managed centrally under the control of the Group’s Treasury in order to guarantee an effective and efficient management of the financial resources as well as optimise the debt’s maturity standpoint.
In addition, the Parent Company finances the temporary cash requirements of Group companies by providing direct short-term loans regulated in market conditions or guarantees.
As of 30 September 2019, the Group had a liquidity of €/000 212,472, €/000 236,275 of undrawn irrevocable credit lines and €/000 151,750 of revocable credit lines, as detailed below:
In thousands of Euros
As of 30 September 2019
As of 31 December 2018
Variable rate with maturity within one year - irrevocable until maturity
Variable rate with maturity beyond one year - irrevocable until maturity
Variable rate with maturity within one year - cash revocable
Variable rate with maturity within one year - with revocation for self-liquidating typologies
Total undrawn credit lines