123 HEINEKEN N.V. ANNUAL REPORT 2008 The movement in the allowance for impairment in respect of loans during the year was as follows: In millions of EUR 2008 2007 Balance as at 1 January Changes in consolidation Impairment loss recognised Allowance used 108 49 46 (26) 90 37 (19) Balance as at 31 December 177 108 Impairment losses recognised for trade and other receivables (excluding derivatives used for hedging) and loans are part of the other non-cash items in the consolidated statement of cash flows. The impairment loss of €46 million in respect of loans and the impairment loss of €52 million in respect of trade receivables (excluding derivatives used for hedging) were included in expenses for raw materials, consumables and services. An impairment loss of €46 million in respect of loans was recognised during the current year of which €34 million related to loans to customers. Heineken has no collateral in respect of these impaired investments. The allowance accounts in respect of trade and other receivables and held-to-maturity investments are used to record impairment losses, unless Heineken is satisfied that no recovery of the amount owing is possible, t that point the amount considered irrecoverable is written off against the financial asset. iquidity risk quidity risk is the risk that Heineken will not be able to meet its financial obligations as they fall due. ieineken's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient quidity to meet its liabilities when due, under both normal and stressed conditions, without incurring nacceptable losses or risking damage to Heineken's reputation. Jven the current credit markets situation it could be more difficult to generate capital to finance long-term "owth. The Company has a clear focus on ensuring sufficient access to capital markets to finance long-term irowth and to refinance maturing debt obligations. Financing strategies are under continuous evaluation. In ddition, the Company focuses on a further fine-tuning of the maturity profile of its long-term debts with its orecasted operating cash flows. Strong cost and cash management and controls over investment proposals re in place to ensure effective and efficient allocation of financial resources.

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Jaarverslagen | 2008 | | pagina 125