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Financial review 2009<br />
5.6 Finance income and expense<br />
Finance income and expense recognized in the income statement<br />
The composition was as follows:<br />
EUR’000<br />
2009 2008<br />
Interest income on bank <strong>de</strong>posits 201 2,014<br />
Finance income 201 2,014<br />
Interest expense on financial liabilities measured at amortized cost (49,874) (55,017)<br />
Cost of borrowings (635) (7,361)<br />
Net change in fair value of <strong>de</strong>rivatives (5,982) (14,005)<br />
Finance expense (56,491) (76,383)<br />
Net finance expense (56,290) (74,369)<br />
The cost of borrowings EUR 635,000 (2008: EUR 7,361,000) relates to the financing costs of the syndicated loan<br />
facility entered into in 2008, which were capitalized in the aggregate amount of EUR 6,319,000 and amortized over<br />
the terms of the loans. In 2008, an amount of EUR 5,906,000 related to the one-time write off of capitalized finance<br />
costs arising on loans, originating in 2006, which were refinanced in 2008.<br />
The net change in fair value of <strong>de</strong>rivatives EUR 5,982,000 negative (2008: EUR 14,005,000 negative) relates to<br />
changes in the fair value of the interest rate swaps contracts conclu<strong>de</strong>d by the Group to hedge the interest rate risk<br />
on syndicated bank loans and subordinated bank loans.<br />
Finance income and expense recognized in other comprehensive income<br />
The composition was as follows:<br />
EUR’000<br />
2009 2008<br />
Foreign currency translation differences for foreign operations 1,299 (5,955)<br />
Finance income / (expense) recognized in other comprehensive income,<br />
net of tax<br />
Recognized in:<br />
1,299 (5,955)<br />
Translation reserve 1,299 (5,955)
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