Note 40 Other financial assets

€ million

Deferred tax assets

Loans granted to subsidiaries

Other receivables

Total

Carrying amount as at 1 January 2015

5

-

17

22

     

Movements 2015

    

New receivable

-

2,585

2

2,587

Realised temporary differences

5

-

-

5

Loans paid

-

-

-5

-5

     

Total

5

2,585

-3

2,587

     

Carrying amount as at 31 December 2015

10

2,585

14

2,609

     

Movements 2016

    

New receivable

-

-

15

15

Loans paid

-

-

-14

-14

     

Total

-

-

1

1

     

Carrying amount as at 31 December 2016

10

2,585

15

2,610

In June 2015, Alliander granted a long-term loan of €2,566 million to Liander, along with other lending. This amount was deducted from the current account in 2015. This means that there are two separate financing arrangements between Alliander and Liander, namely the new long-term loan agreement, essentially for the purpose of financing network replacement and expansion investments, as well as the existing, separate current account agreement to finance working capital. This provides a closer match between the time horizons of the financing arrangements and the useful lives of the corresponding assets.

The long-term loan agreement with Liander runs for 10 years with automatic annual extension thereafter for periods of one year unless designated otherwise. The interest rate for 2016 is 4.0% (2015: 4.1%), this being the average cost of borrowing on Alliander’s lending portfolio, plus a risk markup. The interest rate will be reviewed annually. The principal will be repayable at the latest on the conclusion of the arrangement. At year-end 2016 the fair value is €3,163 million (2015: €3,112 million).