136 Cyprus Energy Regulatory Authority 6.4 Liquidity risk Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Authority has procedures with the object of minimising such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities. The following tables detail the Authority's remaining contractual maturity for its financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Authority can be required to pay. The table includes both interest and principal cash flows. 31 December 2021 Carrying amounts Contractual cash flows 3 months or less 3-12 months 1-2 years 2-5 years € € € € € € Lease liabilities 445.663 445.663 46.273 140.917 258.473 - Bank overdrafts 6.729 6.729 6.729 - - - Trade and other payables 105.127 105.127 105.127 - - - 557.519 557.519 158.129 140.917 258.473 - 31 December 2020 Carrying amounts Contractual cash flows 3 months or less 3-12 months 1-2 years 2-5 years € € € € € € Lease liabilities 649.793 649.793 44.738 140.238 395.233 69.584 Trade and other payables 108.086 108.086 108.086 - - - 757.879 757.879 152.824 140.238 395.233 69.584 6.5 Other market price risk The general economic environment prevailing in Cyprus and internationally may affect the Authority's operations to a great extent. Economic conditions such as inflation, unemployment, and development of the gross domestic product (GDP) are directly linked to the economic course of every country and any variation in these and the economic environment in general may create chain reactions in all areas hence affecting the Authority. 6.6 Reputation risk The risk of loss of reputation arising from the negative publicity relating to the Authority's operations, whether true or false, may result in a reduction of its clientele, reduction in revenue and legal cases against the Authority. The Authority applies procedures to minimize this risk. Fair value estimation The fair values of the Authority's financial assets and liabilities approximate their carrying amounts at the reporting date.
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