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Provisions
 12 Months Ended
Dec. 31, 2019
Provisions [abstract]  
Disclosure of Provisions
24.
Provisions
The Group, as a result of the ordinary course of its business, may be a party to legal lawsuits of labor, commercial and tax nature. A provision is recognized whenever the loss is classified as probable.
 
 
•
 
Financial guarantees and loan commitments: reflects the expected credit loss arising from financial guarantees issued, unused balances of checking account overdrafts, credit cards and other loan commitments.
 
 
•
 
Provisions for reorganization: Consistent with the goal of further aligning the organizational structure with the corporate strategy during the current year, achieving efficiency gains and streamlining the decision-making process across all work teams.
 
 
•
 
Other provisions: reflects the estimated amounts to pay class actions, labour, tax and commercial claims as well as other miscellaneous complaints.
 
 
  
December 31,
2019
 
  
December 31,
2018
 
Other provisions
  
 
2,407,007
 
  
 
2,076,410
 
Provisions commercial claims
  
 
1,913,733
 
  
 
1,653,888
 
Provisions labor-related
  
 
204,202
 
  
 
260,371
 
Provisions tax claims
  
 
105,595
 
  
 
107,243
 
Others
  
 
183,477
 
  
 
54,908
 
Provisions for reorganization
  
 
1,976,109
 
  
 
—  
 
Financial guarantees and loan commitments
  
 
930,577
 
  
 
551,226
 
 
  
 
 
 
  
 
 
 
TOTAL
  
 
5,313,693
 
  
 
2,627,636
 
 
  
 
 
 
  
 
 
 
Changes in the item for fiscal year 2019 and 2018 are included below:
 
Accounts
  
Balances as of
December 31,
2018
 
  
Increases
 
  
Provisions
used
 
  
Balances as of
December 31,
2019
 
 
  
   
  
   
  
   
  
   
- Other provisions
  
 
2,076,410
 
  
 
2,325,885
 
  
 
(1,995,288
) 
  
 
2,407,007
 
Provisions commercial claims
  
 
1,653,888
 
  
 
1,945,249
 
  
 
(1,685,404
) 
  
 
1,913,733
 
Provisions labor-related
  
 
260,371
 
  
 
128,663
 
  
 
(184,832
) 
  
 
204,202
 
Provisions tax claims
  
 
107,243
 
  
 
68,235
 
  
 
(69,883
) 
  
 
105,595
 
Others
  
 
54,908
 
  
 
183,738
 
  
 
(55,169
) 
  
 
183,477
 
- Provisions for reorganization
  
 
—  
 
  
 
2,342,100
 
  
 
(365,991
) 
  
 
1,976,109
 
- Financial guarantees and loan commitments
  
 
551,226
 
  
 
379,386
 
  
 
(35
) 
  
 
930,577
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
TOTAL PROVISIONS
  
 
2,627,636
 
  
 
5,047,371
 
  
 
(2,361,314
) 
  
 
5,313,693
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
  
   
  
   
  
   
  
   
 
Accounts
  
Balances as of
December 31,
2017
 
  
Adoption of
IFRS 9
 
  
Increases
 
  
Provisions
used
 
  
Balances as of
December 31,
2018
 
 
  
   
  
   
  
   
  
   
  
   
- Other provisions
  
 
2,027,713
 
  
 
—  
 
  
 
955,640
 
  
 
(906,943
) 
  
 
2,076,410
 
Provisions commercial claims
  
 
1,434,919
 
  
 
—  
 
  
 
759,128
 
  
 
(540,159
) 
  
 
1,653,888
 
Provisions labor-related
  
 
356,449
 
  
 
—  
 
  
 
100,425
 
  
 
(196,503
) 
  
 
260,371
 
Provisions tax claims
  
 
110,547
 
  
 
—  
 
  
 
71,299
 
  
 
(74,603
) 
  
 
107,243
 
Others
  
 
125,798
 
  
 
—  
 
  
 
24,788
 
  
 
(95,678
) 
  
 
54,908
 
- Financial guarantees and loan commitments
  
 
2,537
 
  
 
950,064
 
  
 
57,339
 
  
 
(458,714
) 
  
 
551,226
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
TOTAL PROVISIONS
  
 
2,030,250
 
  
 
950,064
 
  
 
1,012,979
 
  
 
(1,365,657
) 
  
 
2,627,636
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
The expected terms to settle these obligations are as follows:
 
December 31, 2019
  
 
 
  
 
 
Provisions
  
Within 12 months
 
  
After 12 months
 
Other provisions
  
 
868,478
 
  
 
1,538,529
 
Provisions commercial claims
  
 
641,511
 
  
 
1,272,222
 
Provisions labor-related
  
 
43,728
 
  
 
160,474
 
Provisions tax claims
  
 
32,836
 
  
 
72,759
 
Others
  
 
150,403
 
  
 
33,074
 
Provisions for reorganization
  
 
1,976,109
 
  
 
—  
 
For financial guarantees and loan commitments
  
 
930,577
 
  
 
—  
 
 
December 31, 2018
  
 
 
  
 
 
Provisions
  
Within 12 months
 
  
After 12 months
 
Other provisions
  
 
941,450
 
  
 
1,134,960
 
Provisions commercial claims
  
 
806,428
 
  
 
847,460
 
Provisions labor-related
  
 
66,422
 
  
 
193,949
 
Provisions tax claims
  
 
21,510
 
  
 
85,733
 
Others
  
 
47,090
 
  
 
7,818
 
For financial guarantees and loan commitments
  
 
539,627
 
  
 
11,599
 
Possible contingencies
Contingent liabilities have not been recognized in these financial statements and corresponds to approximately 100 claims received (both before the courts and the administrative authorities), arisen in the ordinary course of business. These claims are primarily related to leasing claims, petitions to secure evidence, and labor claims. The Group’s management and legal advisors consider that the probability that these cases would derive in an outflow of resources is possible, but not probable, and that the potential cash disbursements should not be material.