56.3 Loans to subsidiaries of PZU

On 25 February 2015, PZU and CM Medica concluded a loan agreement in the amount of PLN 6,500 thousand. The interest rate on the loan was determined on an arm’s length basis (6-month WIBOR rate increased by a margin of 150 bps.) The loan became effective on 22 April 2015 and its repayment date is 22 April 2017.

On 23 March 2015, PZU and PZU Zdrowie SA concluded an interest-free loan agreement. The maximum amount of the loan is PLN 200,000 thousand and the latest repayment date - 31 December 2030. On 24 March 2015, the first installment of PLN 90,000 thousand was initiated, and on 25 September 2015 - the second one, in the amount of PLN 40,000 thousand. Due to the participation of both companies in the Tax Capital Group ("TCG"), it is tax neutral.

On 21 May 2015, PZU and AAS Balta concluded a subordinated loan agreement in the amount of EUR 4,100 thousand. The interest rate on the loan was determined on an arm’s length basis (3-month EURIBOR rate increased by a margin of 330 bps.). The loan is granted for an indefinite period.

On 29 May 2015, PZU and Lietuvos Draudimas AB concluded a subordinated loan agreement in the amount of EUR 10,000 thousand. The interest rate on the loan was determined on an arm’s length basis (3-month EURIBOR rate increased by a margin of 330 bps.). The loan is granted for an indefinite period.

Loans, as transactions between companies within PZU Group, are eliminated in the process of drawing up consolidated financial statements and do not affect its structure nor on the profit or loss of PZU Group.