10.- NON-CURRENT FINANCIAL INVESTMENTS

10.1 Loans and accounts receivable not available for trading

The breakdown of this item at 31 December 2017 and 2016 is as follows:

	Thousands of Euros
	2017	2016
Subordinated loans to companies owning hotels operated by the Group through leases	30.689	43.085
Other collection rights	16.395	16.395
Lease advance payments	3.155	3.122
Loans to associates (Note 25)	-	244
Long-term deposits and sureties	12.939	13.984
Others	1.976	1.555
Total	65.154	78.385

The “Subordinated loans to companies owning hotels operated by the Group through leases” item includes a series of loans granted by the Group to companies which own hotels in countries such as Germany, Austria, Luxembourg, the Netherlands, Italy and Spain, and which are operated by the Group under a leasing agreement.

The main features of these agreements are as follows:

• Hotel rentals are not subject to evolution of the inflation rate or to that of any other index.
• The above-mentioned subordinated loans accrue interest at a fixed rate of 3% per year (2.93 million euros in 2017 and 2.31 million euros in the preceding year).
• Lease agreements establish a purchase right on properties subject to agreements that, as a general rule, may be executed in the fifth, tenth and fifteenth year from the entry into force of the agreement.
• The model used for these lease agreements has been analysed and independent experts consider them to be operating leases.

The “Other collection rights” item reflects the claim filed against the insurance company that underwrote the ten-year construction insurance. The amount claimed corresponds to the repairs made and pending in the Los Cortijos de Sotogrande housing development.

The “Lease advance payments” item consists of advance payments made to the owners of certain hotels operated under a lease arrangement for the purchase of decoration and furniture; these are discounted from future rental payments.

As regards the fair value of financial assets, it does not differ significantly from its book value.

10.2 Other non-current financial investments

This heading of the consolidated balance sheet comprised, at 31 December 2017 and 2016, the following equity interests, valued at cost:

	Thousands of Euros
​	2017	2016
Varallo Comercial, S.A. (Nota 2.5.4)	9.343	9.343
NH Panamá	3.767	3.767
Otras inversiones	677	679
Provisiones	(3.046)	(1.118)
Total	10.741	12.671

In the year 2017, a provision of 1,928 thousand euros was allocated, corresponding to the shareholding of NH Panama based on an appraisal by an independent expert.

As regards the fair value of financial assets, it does not differ significantly from its book value.