16.	FINANCIAL RISK MANAGEMENT

16.1 Financial risk factors

The Company’s activities and the market in which it operates expose it to a series of financial risks: market risk (including foreign exchange risk, interest rate risk, and commodity price risk), credit risk and liquidity risk.

The Company's risk management framework establishes that a risk map is determined that measures the potential impact of each of them on the financial situation and results of operations. Based on this, the Executive Officers are responsible for defining the policies, procedures, limits and measures aimed at mitigating the impact of said risks.

The sensitivity analyzes included below are based on the change in one of the factors while all others remain constant. In practice, this is unlikely to happen, and changes in several factors can be correlated, for example, in variations in the interest rate and variations in the foreign currency exchange rate.

Sensitivity analysis only provides limited vision, at one point in time. The actual impact on the Company's financial instruments could vary significantly with respect to the impact shown in the sensitivity analysis.

16.1.1 Risk associated with exchange rates

Restrictions to the single free market for foreign exchange ("MULC")

As mentioned in Note 1, the main global and Argentine economic variables have had a negative impact on financial markets affecting the cost of borrowing, hedging activities, liquidity and access to capital in general. In the local market, particularly, the shares of the main listed companies, sovereign bonds and the Argentine peso experienced a sharp drop in value.

Additionally, as from April 2020, through the issuance of Communication "A" 7001, subsequently amended by Communications "A" 7030, 7042, 7052, 7068 and 7138, the BCRA established measures that intensify the restrictions for access to the MULC, including measures related to the trading of stock market assets by companies.

In turn, on May 25, 2020 and June 19, 2020, the CNV issued General Resolutions No. 841 and 843, by means of which restrictions are established for the purchase and sale of negotiable securities in U.S. dollars, or the transfer of such securities to depositary companies abroad. Subsequently, by means of General Resolution No. 862, such agency provided certain flexibilities to the terms of permanence of such securities.

These measures aimed at restricting the MULC in order to contain the demand for dollars imply the request of prior authorization from the BCRA for certain transactions, including the following:

- payment of dividends to non-residents;

- payment of imports of certain goods abroad or cancellation of debts originated in the importation of such goods except for certain exceptions expressly provided for in the applicable regulations;

- the formation of foreign assets; and

- payment of financial loans to non-residents.

In case of having requested access to the MULC, it must assume the commitment to enter and settle in the foreign exchange market, within five working days of its availability, those funds received abroad originated in the collection of loans granted to third parties, the collection of a time deposit or the sale of any type of asset, when the asset had been acquired, the deposit constituted or the loan granted after May 28, 2020.

Additionally, on September 15, 2020, the BCRA published Communications "A" 7105 and 7106 by which it is established, among other measures, that those who register financial debts with independent parties with principal maturities in foreign currency scheduled between October 15, 2020 and March 31, 2021, must submit to the BCRA a refinancing plan for the principal maturities based on the following criteria: (a) that the net amount for which the exchange market will be accessed in the original terms will not exceed 40% of the principal amount maturing in the period indicated above, and (b) that the remaining principal be, at least, refinanced with new external indebtedness with an average life of 2 years, provided that the new indebtedness is settled in the exchange market.

The aforementioned rule does not have immediate effect on the Company since the amortization of the principal of its marketable debentures occurs on May 2, 2025, which is not within the aforementioned term. On the other hand, as of the date of issuance of these consolidated financial statements, the Company paid all the interest installment corresponding to its financial debt on November 2, 2020.

Additionally, the exchange regime already determined as mandatory the entry and liquidation in local currency of the funds obtained as a result of the following operations and concepts, among others:

- Exports of goods and services;

- Collection of pre-financing, advances and post-financing of exports of goods;

- Exports of services;

- Disposal of foreign assets.

These foreign exchange restrictions, or those that may be enacted in the future, could affect the Company's ability to access the official foreign exchange market to acquire the foreign currency necessary to meet its financial obligations. Assets and liabilities denominated in foreign currency as of December 31, 2020 have been valued considering the current exchange rates in the MULC.

Exchange rate risk management

In view of the main impacts of the aforementioned situation and those detailed in Note 1 to these Consolidated Financial Statements, the Company has implemented a series of measures to mitigate their impact. In this sense, the Company's Management permanently monitors the evolution of the situations that affect its business, in order to determine the possible actions to be taken and identify the eventual impacts on its equity and financial situation. The Company considers that its current financial position will allow it to comply, in the short term, with its foreign currency commitments. The Company's financial statements should be read in light of these circumstances.

The Company is primarily exposed to the fluctuation of the exchange rate of the U.S. dollar against the Argentine Peso due to the fact that almost its entire financial indebtedness is denominated in U.S. dollars. The exposure to other currencies is not significant.

As regards to the revenue derived from the Natural Gas Transportation segment, the tariffs charged by the Company are currently denominated in Argentine pesos. On the other hand, revenues in US dollars derived from the Liquids Production and Commercialization segment accounted for approximately 87% of the segment’s total revenues for the years ended December 31, 2020 and 2019. Total revenues denominated in Argentine Pesos accounted for 50%, 53% and 59% for the years ended December 31, 2020, 2019 and 2018, respectively.

TGS' financial risk management policies are defined with the objective of mitigating the impact of exchange rate fluctuations on the Company's foreign currency position. To this end, alternative investment evaluations are regularly carried out to diversify TGS' investment portfolio among instruments denominated in U.S. dollars or, although denominated in Argentine pesos, to obtain positive returns in real terms.

Additionally, if deemed appropriate, the Company enters into derivative financial instruments that allow hedging the fluctuation of the U.S. dollar on the positions in such currency in the long term. During fiscal years 2020, 2019 and 2018, the Company did not contract derivative financial instruments to hedge this risk.

However, the Company, in order to mitigate the impact on the future variation of the exchange rate, has placed funds in assets denominated in U.S. dollars. As of December 31, 2020, 96% of the Company's fund placements are denominated in U.S. dollars.

For further information regarding the Company's foreign currency position see "Note 18. Foreign currency assets and liabilities".

Management of the Company estimates that, based on the net liability position as of December 31, 2020 and 2019, a 10% appreciation in the exchange rate of the U.S. dollar against the Argentine peso, with all other economic-financial variables stable, could have resulted in a pre-tax loss of Ps. 2,533,781 and Ps. 3,491,865, respectively. A 10% depreciation of the U.S. dollar against the Argentine peso would have an equal and opposite effect on the Statement of Comprehensive Income. This sensitivity analysis is theoretical as the actual impacts could differ significantly and vary over time.

16.1.2 Interest rate risk

Interest rate risk management seeks to reduce financial costs and limit the Company's exposure to increases in interest rates. TGS' exposure to risks associated with interest rate variations is limited given that all of its financial debt is subject to fixed interest rates. Information regarding the Company's financing is disclosed in Note 13.

In addition, the main objective of the Company's financial investment activities is to obtain the highest return by investing in low-risk and highly liquid instruments. The Company maintains a portfolio of cash equivalents and short-term investments comprised of investments in mutual funds and deposits in interest-bearing bank accounts, public and private securities. The risk of these instruments is low since they are mostly short-term and highly liquid in recognized financial institutions.

As a consequence of the application of IAS 29, maintaining monetary assets generates loss of purchasing power, provided that such items are not subject to an adjustment mechanism that compensates to some extent the loss of purchasing power. This loss of purchasing power is included in the result of the period under gain on the net monetary position. On the contrary, maintaining monetary liabilities generates a gain in purchasing power, which are also included in such line item.

The Company's risk management policies are defined with the objective of reducing the impact of the loss of purchasing power. During the 2020, 2019 and 2018 fiscal years the Company has maintained a liability monetary position. As a consequence, TGS has recorded a net gain from exposure to inflation in the monetary items.

The following table shows a breakdown of the Company’s fixed-rate and floating-rate financial assets and liabilities as of December 31, 2020 and 2019:

	Financial assets⁽¹⁾				Financial liabilities⁽²⁾
	2020		2019		2020		2019
Fix interest rate		16,108,712		11,776,641		40,976,742		41,092,728
Variable interest rate		3,179,938		1,413,687		-		1,390,438
Total		19,288,650		13,190,328		40,976,742		42,483,166

⁽¹⁾ Includes mutual funds, fixed terms, Us treasury bonds and bank accounts. Trade receivables do no bear interests, except for Ps. 5,403 and Ps. 11,923, which bears CER plus a spread of 8% as of December 31, 2020 and 2019, respectively.

⁽²⁾ Includes loans, issuance expenses and financial leasing

In view of the nature of the Company’s financial assets which bear variable interest, an immediate 100 basis points decrease in the interest rate would not have a significant impact on the total value of the financial assets.

16.1.3 Commodity price risk

Commercial operations performed by the Company in its Liquids Production and Marketing segment are affected by a number of factors beyond its control, including changes in the international prices of the products sold, and government regulations on prices, taxes and other charges, among others.

The sales prices of exported propane, butane and natural gasoline are determined according to international reference prices (Mont Belvieu for propane and butane and NWE ARA for natural gasoline). Additionally, most of the total sales of propane and butane that are made in the domestic market are made at prices set by the Ministry of Energy for the different market segments.

These prices have historically fluctuated in response to macroeconomic conditions and changes in supply and demand, which could affect TGS' profitability. Especially during the first half of 2020, and due to the effect of COVID and the international oil market situation, the price of Liquids was negatively affected with year-on-year declines during that period in the order of 30%. However, as of the last quarter of 2020 and after the end of the year, international prices recovered sharply. Likewise, in the domestic market, the price of natural gas at wellhead during fiscal year 2020 has been significantly reduced, measured in U.S. dollars, which benefits the RTP for processing at the Cerri Complex. These factors, among others, have allowed 2020 operating margins for this segment to be maintained over the prior year.

Based on volume of sales for the years ended December 31, 2020, 2019 and 2018, tgs estimated that, other factors being constant, a decrease of US$ 50 per ton in the international price of LPG and natural gasoline, respectively, would have decrease the Company’s net comprehensive income in its Liquids Production and Commercialization segment in Ps. 2,018,826, Ps. 1,569,844 and Ps 1,156,053. , respectively. On the other hand, an increase of US$ 50 per ton in the international price would have had the opposite effect.

Derivative financial instruments

On July 23, 2018 TGS entered into an agreement with a recognized financial institution to hedge propane, butane and natural gasoline export prices (put contracts), with the objective of offsetting potential losses that could be generated in the event that export prices fall below breakeven prices (those that equal costs). Such agreement was effective between October 2018 and April 2020, according to the following monthly short tons:

Period	Propane		Butane		Natural gasoline
October 2018 - April 2019		6,663		4,967		2,976
May 2019 - September 2019		-		-		4,519
October 2019		9,996		7,727		4,630
November 2019 - April 2020		14,438		11,038		6,614

In order to arrange such operation, the Company paid a premium of U.S.$ 3 million, which was classified as a financial asset measured at fair value through profit or loss, being recorded under “Derivative financial instruments”. The Company has not designated those instruments for the application of hedge accounting in accordance with the provisions of IFRS 9.

As of December 31, 2020, the Company does not hold derivative financial instruments. As of December 31, 2019, the balance is Ps. 373,058 and is recorded under "Derivative financial instruments".

16.1.4 Credit risk

The Company’s exposures to credit risk takes the form of a loss that would be recognized if counterparties failed to, or were unable to, meet their payment obligations. These risks may arise in certain agreements in relation to amounts owed for physical product sales, the use of derivative instruments, and the investment of surplus cash balances. This risk mainly results from economic and financial factors or from a possible default of counterparty.

The Company is subject to credit risk arising from outstanding receivables, cash and cash equivalents and deposits with banks and financial institutions, and from the use of derivative financial instruments. The Company’s policy is to manage credit exposure to trading counterparties within defined trading limits.

Trade and other receivables

Each of the Company's customers is rated independently. In the event that they do not have a credit rating, both patrimonial, economic and financial variables are evaluated, as well as commercial, banking and specialized agencies' reports. Finally, according to the evaluation performed, the degree of credit risk of each customer is determined and the need or not to request guarantees/guarantees to the customer.

As of December 31, 2020 and 2019, current and non-current sales receivables, net of allowance for doubtful accounts, amounted to:

	2020			2019
Current trade receivables		6,279,974			8,997,144
Allowances for doubful accounts		(132,521	)		(183,730	)
Total		6,147,453			8,813,414

In the ordinary course of business, the Company provides natural gas transportation services mainly to natural gas distribution companies, CAMMESA and Pampa Energía. The amounts of net sales made to the principal customers to which Natural Gas Transportation services were provided in the years ended December 31, 2020 and 2019 and the sales receivable balances (net of allowances) as of December 31, 2020 and 2019 are set forth below:

	2020				2019				2018
	Revenues		Trade receivables		Revenues		Trade receivables		Revenues
MetroGas		5,894,110		1,441,808		7,963,051		1,986,849		6,749,054
Camuzzi Gas Pampeana S.A.		4,358,139		706,139		5,926,232		992,651		5,013,132
Naturgy Argentina		3,523,002		313,536		4,759,550		772,501		4,045,276
CAMMESA		2,342,531		666,127		1,821,557		280,998		2,801,553
Pampa Energía		841,274		306,995		1,094,039		351,252		920,555
Camuzzi Gas del Sur S.A.		1,042,980		146,965		1,464,524		205,352		1,119,315

The amounts of Liquids Production and Marketing net sales made to major customers during the years ended December 31, 2020 and 2019 and sales receivable balances (net of allowances) as of such date are set forth below:

	2020				2019				2018
	Revenues		Trade receivables		Revenues		Trade receivables		Revenues
PBB Polisur		9,303,676		777,791		8,628,893		1,145,402		11,031,223
Petredec		691,227		-		1,365,850		-		1,798,666
Geogas Trading S.A.		287,550		-		2,303,376		511,512		2,308,545
Italgas S.A.		396,307		-		-		-		-
YPF		973,411		42,364		1,686,921		36,079		992,619
Petrobras Global Trading BV		4,510,924		284,089		6,053,139		540,712		3,652,024

Cash and financial placements

The credit risk on cash and cash equivalents and other financial placements is limited since TGS has short-term fund placement policies whose main objective is to obtain an adequate return based on market characteristics and minimizing risk exposure. These placements are diversified in different financial institutions with adequate credit ratings in order to limit exposure to a few financial institutions. The Company's maximum exposure to credit risk will be given by the carrying value of assets included in cash and cash equivalents and other financial assets at amortized cost.

During the year 2020, the Company has carried out transactions with financial instruments, mainly national and provincial government bonds, which resulted in exchange losses of Ps. 7,977,729, which are recorded as "Other financial results - Result from valuation at fair value of financial assets through profit or loss" in the Statement of comprehensive income for the year ended December 31, 2020.

Subsequent to December 31, 2020, Ps. 1,346,192 have been incurred as a result of exchange losses accrued on this type of financial instruments held at year-end.

Below is a detail of the maturities of the financial assets included in (i) cash and cash equivalents, (ii)loans to related parties, (iii) other financial assets, (iv) trade receivables, (v) other receivables and (vi) derivative financial instruments as of December 31, 2020 and 2019:

December 31, 2020
	Cash and cash equivalents		Other financial assets		Credits ^{(1) (2)}
Without specified maturity		4,653,406		2,120,788		39,334
With specified maturity
Overdue
Until 12-31-2019		-		-		137,271
From 01-01-20 to 03-31-20		-		-		753
From 04-01-20 to 06-30-20		-		-		447
From 07-01-20 to 09-30-20		-		-		23,435
From 10-01-20 to 12-31-20		-		-		2,153,580
Total overdue		-		-		2,315,486

Non-due
From 01-01-21 to 03-31-21		-		775		4,320,035
From 04-01-21 to 06-30-21		-		775		124,094
From 07-01-21 to 09-30-21		-		775		78,774
From 10-01-21 to 12-31-21		-		15,994		76,053
During 2022		-		13,758,563		6,943
During 2023		-		449		-
During 2024		-		-		-
During 2025		-		-		-
From 2026 onwards		-		-		-
Total non-due		-		13,777,331		4,605,899
Total with specified maturity		-		13,777,331		6,921,385
Total		4,653,406		15,898,119		6,960,719

⁽¹⁾ The total amount of the receivables without specified maturity is recorded in Non-current assets.

⁽²⁾ Includes financial assets recorded in trade receivables and other receivables, excluding allowance for doubtful accounts.

December 31, 2019
	Cash and cash equivalents		Other financial assets		Credits ^{(1) (2)}
Without specified maturity		13,138,638		-		29,416
With specified maturity
Overdue
Until 12-31-2018		-		-		196,854
From 01-01-19 to 03-31-19		-		-		2,094
From 04-01-19 to 06-30-19		-		-		5,779
From 07-01-19 to 09-30-19		-		-		468,088
From 10-01-19 to 12-31-19		-		-		1,077,598
Total overdue		-		-		1,750,413

Non-due
From 01-01-20 to 03-31-20		155,764		1,791,120		7,177,308
From 04-01-20 to 06-30-20		-		1,084		657,055
From 07-01-20 to 09-30-20		-		1,055		11,034
From 10-01-20 to 12-31-20		-		1,052		13,739
During 2021		-		4,143		9,452
During 2022		-		2,602		-
During 2023		-		611		-
During 2024		-		-		-
From 2025 onwards		-		-		-
Total non-due		155,764		1,801,667		7,868,588
Total with specified maturity		155,764		1,801,667		9,619,001
Total		13,294,402		1,801,667		9,648,417

⁽¹⁾ The total amount of the receivables without specified maturity is recorded in Non-current assets.

⁽²⁾ Includes financial assets recorded in trade receivables and other receivables, excluding allowance for doubtful accounts.

16.1.5 Liquidity risk

This risk involves the difficulties that TGS may have in meeting its commercial and financial obligations. To this end, the expected cash flow is regularly monitored.

TGS has policies for borrowing funds whose main objective is to cover financing needs at the lowest cost according to market conditions. One of the Company's main objectives is to have financial solvency. Given the current conditions of the financial market, the Company believes that the availability of resources and the positive cash flow from operations are sufficient to meet its current obligations, despite having credit lines for borrowing funds.

Additionally, a methodology is used for the analysis and assignment of credit limits to the different financial entities in order to minimize the associated liquidity risk. In line with this, the Company invests its liquid funds in financial entities with an adequate credit rating.

Below is a detail of the maturities of the Company's financial liabilities corresponding to: commercial debts, remunerations, other debts and financial debts as of December 31, 2020 and 2019. The amounts presented in the tables represent contractual undiscounted cash flows and, therefore, do not correspond to the amounts presented in the statement of financial position. These estimates are made on the basis of information available at the end of each year and may not reflect actual amounts in the future. Therefore, the amounts shown are provided for illustrative purposes only:

December 31, 2020
	Loans		Other financial liabilities		Leases liabilities
Without specified maturity		-		-		-
With specified maturity
Overdue
Until 12-31-2019		-		215,255		-
From 01-01-20 to 03-31-20		-		311		-
From 04-01-20 to 06-30-20		-		311		-
From 07-01-20 to 09-30-20		-		311		-
From 10-01-20 to 12-31-20		-		311		63,526
Total overdue		-		216,499		63,526

Non-due
From 01-01-21 to 03-31-21		-		3,853,636		157,361
From 04-01-21 to 06-30-21		1,420,031		14,644		157,361
From 07-01-21 to 09-30-21		-		-		157,361
From 10-01-21 to 12-31-21		1,420,031		-		157,361
During 2022		2,840,063		-		629,526
During 2023		2,840,063		-		629,526
During 2024		2,840,063		-		629,526
During 2025		43,419,769		-		629,526
From 2026 onwards		-		-		376,066
Total non-due		54,780,020		3,868,280		3,523,614
Total with specified maturity		54,780,020		4,084,779		3,587,140
Total		54,780,020		4,084,779		3,587,140

December 31, 2019
	Loans		Other financial liabilities		Financial leases
Without specified maturity		-		-		-
With specified maturity
Overdue
Until 12-31-2018		-		178,111		-
From 01-01-19 to 03-31-19		-		423		-
From 04-01-19 to 06-30-19		-		423		-
From 07-01-19 to 09-30-19		-		423		-
From 10-01-19 to 12-31-19		-		423		123,021
Total overdue		-		179,803		123,021

Non-due
From 01-01-20 to 03-31-20		1,398,847		5,098,543		152,469
From 04-01-20 to 06-30-20		1,375,897		44,612		152,469
From 07-01-20 to 09-30-20		-		-		152,469
From 10-01-20 to 12-31-20		1,375,897		-		152,469
During 2021		2,751,793		-		609,960
During 2022		2,751,793		-		609,960
During 2023		2,751,793		-		609,960
During 2024		2,751,793		-		609,960
From 2025 onwards		42,143,192		-		974,339
Total non-due		57,301,005		5,143,155		4,024,055
Total with specified maturity		57,301,005		5,322,958		4,147,076
Total		57,301,005		5,322,958		4,147,076

16.1.6 Capital management risk.

The Company's objectives in managing capital are to safeguard the Company's ability to continue as a going concern, to achieve an optimal cost of capital structure and to support the investment process in order to provide returns to shareholders and benefits to other stakeholders.

TGS seeks to maintain a level of cash generation from its operating activities that will enable it to meet all of its commitments.

The Company monitors capital on the basis of the leverage ratio. This ratio is calculated as total financial debt (including "current financial debt" and "non-current financial debt" as shown in the Statement of Financial Position) divided by total capital. Total capital is calculated as "Shareholders' Equity", as shown in the Statement of Changes in Shareholders' Equity, plus total financial debt.

During the years ended December 31, 2020 and 2019, the gearing ratio was as follows:

	2020		2019
Total debt (Note 13)		43,869,424		45,719,826
Total equity		66,026,644		65,461,118
Total capital		109,896,068		111,180,944
Gearing Ratio		0.40		0.40

16.2 Financial instruments by category and level of hierarchy

16.2.1 Categorization of financial instruments

The accounting policies for the categorization of financial instruments were explained in Note 4.e. In accordance with IFRS 7, IAS 32 and IFRS 9, non-financial assets and liabilities, such as contract and supplier liabilities, tax and social charges, income tax and deferred income tax are not included.

The categorization of financial assets and liabilities as of December 31, 2020 and 2019 is included below:

	December 31, 2020
	Financial assets at fair value		Financial assets at amortized cost		Total
CURRENT ASSETS
Trade receivables		-		6,147,453		6,147,453
Other receivables		-		673,142		673,142
Other financial assets at amortized cost		-		18,319		18,319
Other financial assets at fair value through profit or loss		2,120,788		-		2,120,788
Cash and cash equivalents		3,176,316		1,477,090		4,653,406
Total current assets		5,297,104		8,316,004		13,613,108

NON-CURRENT ASSETS
Other receivables		-		7,603		7,603
Other financial assets at amortized cost		-		13,759,012		13,759,012
Total non-current assets		-		13,766,615		13,766,615
Total assets		5,297,104		22,082,619		27,379,723

	Financial liabilities at fair value		Other financial liabilities		Total
CURRENT LIABILITIES
Trade payables		-		2,803,596		2,803,596
Loans		-		936,766		936,766
Payroll and social security taxes payables		-		991,669		991,669
Other payables		-		301,974		301,974
Total current liabilities		-		5,034,005		5,034,005

NON-CURRENT LIABILITIES
Loans		-		42,932,658		42,932,658
Total non-current liabilities		-		42,932,658		42,932,658
Total liabilities		-		47,966,663		47,966,663

	2019
	Financial assets at fair value		Financial assets at amortirzed cost		Total
CURRENT ASSETS
Trade receivables		-		8,813,414		8,813,414
Other receivables		-		644,239		644,239
Derivative financial instruments		373,058		-		373,058
Other financial assets at amortized cost		-		1,421,253		1,421,253
Cash and cash equivalents		1,401,763		11,892,639		13,294,402
Total current assets		1,774,821		22,771,545		24,546,366

NON-CURRENT ASSETS
Other receivables		-		10,351		10,351
Other financial assets at amortized cost		-		7,356		7,356
Total non-current assets		-		17,707		17,707
Total assets		1,774,821		22,789,252		24,564,073


	Financial liabilities at fair value		Other financial liabilities		Total
CURRENT LIABILITIES
Trade payables		-		5,600,240		5,600,240
Loans		-		2,344,459		2,344,459
Payroll and social security taxes payables		-		726,306		726,306
Other payables		-		391,621		391,621
Total current liabilities		-		9,062,626		9,062,626

NON-CURRENT LIABILITIES
Loans		-		43,375,367		43,375,367
Total non-current liabilities		-		43,375,367		43,375,367
Total liabilities		-		52,437,993		52,437,993

16.2.2 Fair value measurement hierarchy and estimates

According to IFRS 13, the fair value hierarchy introduces three levels of inputs based on the lowest level of input significant to the overall fair value. These levels are:

Level 1: includes financial assets and liabilities whose fair values are estimated using quoted prices (unadjusted) in active markets for identical assets and liabilities. The instruments included in this level primarily include balances in mutual funds and public or private bonds listed on the Bolsas y Mercados Argentinos S.A. (“BYMA”).

Level 2: includes financial assets and liabilities whose fair value is estimated using different assumptions quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (for example, derived from prices). Within this level, the Company includes those derivate financial instruments for which it was not able to find an active market.

Level 3: includes financial instruments for which the assumptions used in estimating fair value are not based on observable market information.

During 2020 and 2019, there were no transfers between the different hierarchies used to determine the fair value of the Company's financial instruments or reclassifications between categories of financial instruments.

The table below shows different assets at their fair value classified by hierarchy as of December 31, 2020 and 2019:

	As of December 31, 2020
	Level 1		Level 2		Level 3		Total
Financial assets at fair value
Cash and cash equivalents		3,176,316		-		-		3,176,316
Other financial assets at fair value through profit or loss		2,120,788		-		-		2,120,788
Total		5,297,104		-		-		5,297,104

	As of December 31, 2019
	Level 1		Level 2		Level 3		Total
Financial assets at fair value
Cash and cash equivalents		1,401,763		-		-		1,401,763
Derivative financial instruments		-		373,058		-		373,058
Total		1,401,763		373,058		-		1,774,821

The fair value amount of the financial assets is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

As of December 31, 2020, the carrying amount of certain financial instruments used by the Company, in cash, cash equivalents, other investments, accounts receivable and payable and short-term obligations is representative of fair value due to the short-term nature of these instruments. Also, the carrying value of non-current financial assets at amortized cost consists of time deposits made with financial institutions at current market rates.

The estimated fair value of Non-current loans is estimated based on quoted market prices. The following table reflects the carrying amount and estimated fair value of the 2018 Notes at December 31, 2020, based on their quoted market price:

	As of December 31, 2020
	Carrying amount		Fair value
2018 Notes		40,976,742		37,583,947