PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED AND SUBSIDIARIES FOR THE YEAR ENDED DECEMBER 31, 2021 NOTES TO THE FINANCIAL STATEMENTS - 96 - Interest rate risk Interest rate risk is the risk that future movements in market interest rates will affect the results of the Group’s operations and its cash flows because the Group’s finances loans which have both floating and fixed interest rates for their operations. The Group has managed this risk to ensure the appropriateness to the business operation. The effective interest rates of interest-bearing liabilities as at December 31, 2021 and 2020 and the periods in which those liabilities mature or re-price were disclosed in note 19 to the financial statement. Interest rate sensitivity analysis The sensitivity analyses below have been determined based on the exposure to interest rates for financial liabilities at the reporting date. For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole year and using an increase or decrease rate by considering the reasonably possible change in interest rates. Unit : Million Baht Consolidated financial statements Separate financial statements Increase Decrease Increase Decrease As at December 31, 2021 Interest rates change by 1% Finance costs 963 (323) 433 (192) As at December 31, 2020 Interest rates change by 1% Finance costs 625 (237) 330 (162) Foreign currency risk The Group is exposed to foreign currency risk. Therefore, the Group primarily utilises forward exchange contracts and foreign currency and interest rate swap contracts to hedge such financial assets and liabilities denominated in foreign currencies. As at December 31, 2021 and 2020, the Group was exposed to foreign currency risk in respect of financial assets and liabilities denominated in the following currencies: Unit : Million Baht Consolidated financial statements Separate financial statements 2021 2020 2021 2020 USD Financial assets 59,235 23,242 66,414 18,769 Financial liabilities (24,154) (19,846) (79,804) (33,503) Gross statement of financial position exposure 35,081 3,396 (13,390) (14,734) Net Derivatives (1,279) 148 1,941 (634) EUR Financial assets 22 1,039 86,772 1,007 Financial liabilities (19,936) (85) (10,236) - Gross statement of financial position exposure (19,914) 954 76,536 1,007 Net Derivatives 536 (528) - (1,021) 328 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2021
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