Vopak is exposed to credit risks on financial instruments amounting to EUR 339.3 million (prior year EUR 348.0 million) (see note 15). Loans granted to joint ventures are not secured by collaterals. Exposure to the risk of bad debt is usually limited as the value of the product stored for these clients usually exceeds the value of the receivables and Vopak generally has the right of retention although other claims may have priority ranking over the right of retention in a bankruptcy case. Assessing the financial positions of counterparties is part of our credit management and tendering process, but cannot exclude all credit risk. In view of the global financial crisis Vopak has intensified credit management and monitoring of outstanding receivables and stored products.

As far as possible, financial instruments and cash and cash equivalents are spread evenly across a select group of financial institutions with daily limiting the cash and cash equivalents within the Group. The exposure to each financial institution is assessed regularly and appropriate action is taken within Vopak’s treasury policy.