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20. Irrevocable Facilities

These relate to the total liabilities in respect of irrevocable undertakings, which may lead to a further loan.

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in thousands of EUR

2017

2016

 

 

 

 

 

 

Undrawn debit limits on current accounts and credit cards

165,752

171,051

Accepted loans not yet paid out

874,303

599,285

Valid loan offers not yet accepted

106,259

152,488

Other facilities

2,353

2,686

 

 

 

 

 

 

 

1,148,667

925,510

 

 

 

Other off-balance sheet liabilities

In addition to the contingent liabilities and irrevocable facilities reported on the balance sheet, the deposit guarantee scheme and the investor compensation scheme is applicable as stated in Article 3:259 of the Financial Supervision Act. The funds entrusted insured under the deposit guarantee scheme amounts to EUR 6,864 million (2016: EUR 6,393 million). In 2016 the annually ex-ante contribution to the Deposit Guarantee Fund started in order to reach a target level of 0.8% of the insured funds entrusted in The Netherlands in 2024. The contribution to the Deposit Guarantee Fund amount to EUR 6.8 million in 2017 (2016: EUR 5.9 million).

Value Added Tax

As per July 1, 2015 the Belgian tax office enacted administrative decision E.T.127.577 (‘the Decision’) following the Belgian interpretation of the Skandia ruling by the European Court of Justice. As a result of the Decision services provided by Triodos Bank NV’s head office in The Netherlands to Triodos Bank Belgian branch are deemed subject to value added tax (‘VAT’) in Belgium as of this date (except for those services which are VAT exempt).

As a result, Triodos Bank Belgian branch incurs VAT on these services which is then rendered effectively non-tax deductible through the VAT exempt services provided by Triodos Bank Belgian branch towards its clients. Adding to that Triodos Bank Belgian branch faces double VAT taxation for externally bought supplies or services by Triodos Bank NV’s head office in The Netherlands which are allocated to Triodos Bank Belgian branch.

Triodos Bank is of the view that the Decision is not in line with Belgian and European Law, a view which is supported by its tax and legal advisors. Triodos Bank has contacted the Belgian tax authorities to discuss its position on the matter. As such Triodos Bank has not recognised a provision for this, but has decided to disclose this matter as a contingent liability in the annual accounts.

Should the case be decided against Triodos Bank, then the amount involved to settle the Belgian VAT incurred by Triodos Bank Belgian branch until balance sheet date would amount to approximately EUR 4.0 million (2016: EUR 2.6 million). The potential impact on result and equity will be the amount after deduction of corporate income tax in the year of payment. In 2017 the corporate income tax rate in Belgium was 33.99%.

Rental commitments

in thousands of EUR

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Location

Amount per annum

Residual term

 

 

 

 

 

 

Zeist, The Netherlands

536

12 months

Zeist, The Netherlands

166

12 months

Zeist, The Netherlands

410

15 months

Berlin, Germany

11

20 months

Brussels, Belgium

807

72 months

Edinburgh, United Kingdom

25

81 months

Albacete, Spain

9

2 months

Badajoz, Spain

26

24 months

Barcelona, Spain

60

3 months

Bilbao, Spain

14

3 months

Gerona, Spain

6

13 months

Granada, Spain

31

6 months

La Coruña, Spain

12

3 months

Las Palmas, Spain

10

3 months

Madrid, Spain

35

3 months

Malaga, Spain

80

12 months

Murcia, Spain

24

3 months

Oviedo, Spain

22

3 months

Palma de Mallorca, Spain

22

3 months

Pamplona, Spain

16

3 months

Santa Cruz de Tenerife, Spain

14

3 months

Sevilla, Spain

24

3 months

Valencia, Spain

16

3 months

Valladolid, Spain

22

3 months

Zaragoza, Spain

15

6 months

Frankfurt, Germany

197

18 months

 

 

 

Lease commitments

in thousands of EUR

Lease commitments relates primarily to cars have been entered between 2 and 48 months with an annual charge of EUR 845.

Commitments for software use

in thousands of EUR

The following commitments have been entered for software use:

  • For a period of at least 1 year a fixed annual payment of EUR 140 regarding a mortgage tool.
  • For a period of at least 1 year a variable annual charge of approximately EUR 395 regarding the use of a banking system.
  • For a period of at least 6 years a variable annual charge of approximately EUR 2,298 regarding the use of a banking system.
  • For a period of at least 3 years a variable annual charge of approximately EUR 55 regarding the use of an asset management tool.

Other Commitments

in thousands of EUR

The following commitments have been entered:

  • Services relating managing of mortgages for a period of at least 1 year with an annual charge of EUR 920.
  • Services relating payment transactions for a period of at least 3 years with an variable annual charge of approximately EUR 4,800.
  • Services relating payment transactions for a period of at least 1 year with an variable annual charge of approximately EUR 90.
  • Services relating payment transactions for a period of at least 3 years with an annual charge of approximately EUR 106.
  • Services relating payment transactions for a period of at least 2 years with an annual charge of approximately EUR 33.
  • Services relating payment transactions for a period of at least 4 years with an annual charge of approximately EUR 22.
  • Services relating payment transactions for a period of at least 3 years with an annual charge of approximately EUR 22.
  • Services relating protection of payment systems for a period of at least 0.5 years with an variable annual charge of approximately EUR 500.
  • Services relating maintenance of building equipment for a period of at least 0.5 year with an annual charge of EUR 28.
  • Services relating disaster recovery for a period of at least 0.5 year with an annual charge of EUR 7.
  • Services relating management of investment accounts with an annual charge of EUR 64.
  • Services relating providing temporary co-workers for the customer contact centre for a period of at least 3 months with an variable annual charge of approximately EUR 630.
  • Services relating archive storage and destruction for a period of at least 1 years with an variable annual charge of approximately EUR 20.
  • Services relating a marketing campaign amounting EUR 345.

Triodos Bank has been working on the realization of a new office building since 2011, with the objective to start using the building in 2016. Due to delay in (legal) proceedings, the effective start of the construction works will be early 2018. Completion of the new office is now scheduled for 2019. Total direct construction costs for the building amounts to EUR 49 million excluding VAT. Triodos Bank has an obligation for a perpetually renewable ground lease as of 2017 for an annual amount of EUR 0.2 million.