Page 226 - ENAV eng_Relazione_Finanziaria_Annuale_2014

224 ENAV – 2014 Financial Statements

32. Risk management

Credit risk

ENAV’s credit risk at 31 December 2014 is represented by the carrying
amount of current trade receivables due from customers, which represent
its highest financial statement exposure. A bad debts allowance is
recognized against customer non-performance risk which mainly relates
to Eurocontrol, the collection agent for air carriers. The balance on this
allowance is reviewed on a regular basis, including on the basis of information
provided by Eurocontrol itself on route and terminal receivables. The
process followed by ENAV for writing down receivables consists of making
write-downs of individual customer balances that depend on the financial
situation of the carrier concerned, flight license withdrawal and the age of
the receivable. At 31 December 2014 the portion of trade receivables due
from customers, including management companies, which is considered
of doubtful recovery is fully covered by the bad debts allowance.

Liquidity risk

Liquidity risk is the risk that the although still solvent ENAV may be
unable to meet its planned and contingent payment obligations in a timely
manner due to difficulty in obtaining funds, or that it is only able to do
so under unfavorable economic conditions due to factors connected with
the market’s perception of its riskiness. To this end the Company manages
liquidity risks by adopting financial policies based on a diversification of
lenders and by pursuing a debt management strategy that envisages a
diversified structure for the sources of finance in terms of the nature of bank
facilities, characterized by flexibility as far repayment and renegotiation
possibilities are concerned which may be used to cover its financial needs,
and a balanced repayment profile. At 31 December 2014 ENAV has access
to sources of funding that are sufficient to meet its planned financial needs,
taking into account its ability to generate cash flows, the diversification of
sources of funding and the availability of credit lines, having at its disposal
a cash reserve estimated in ¤480 million and consisting of available cash
and unused credit lines.

The following table sets out the due dates of medium/long-term bank
loans, presented gross of the effect deriving from the use of the amortized
cost method (maturity analysis):