Note 40 Other financial assets
€ million | Deferred tax assets | Loans granted to subsidiaries | Other receivables | Total |
Carrying amount as at 1 January 2016 | 10 | 2,585 | 14 | 2,609 |
Movements in 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 |
Movements in 2017 | ||||
New receivable | - | 29 | 12 | 41 |
Loans paid | - | -3 | -10 | -13 |
Realised temporary differences | 1 | - | - | 1 |
Total | 1 | 26 | 2 | 29 |
Carrying amount as at 31 December 2017 | 11 | 2,611 | 17 | 2,639 |
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 a 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 2017 is 3.15% (2016: 4.0%), 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 2017 the fair value is €2,879 million (2016: €3,163 million).