Group 36: Current financial liabilities
| In TEUR | 2011 | 2010 |
|---|---|---|
| Borrowings from banks | 62.866 | 103.207 |
| Transfer from non-current borrowings from banks | 85.078 | 102.542 |
| Current borrowings from third parties | 1.187 | 1.803 |
| Transfer from non-current borrowings from third parties | 20.658 | 143 |
| Current interest payable | 461 | 805 |
| Current dividends payable | 184 | 184 |
| Derivatives | 5.527 | 14.185 |
| Other financial liabilities | 5.688 | 146 |
| Total | 181.649 | 223.015 |
As at the reporting date, forward exchange contracts were concluded by Gorenje, d.d. in the value of hedged items totalling TEUR 7,600. The forward exchange contracts were used in the financial year 2011 to hedge against a change in the foreign exchange rates: EUR/PLN, EUR/USD and EUR/HUF. At the year end, hedging of the EUR/USD exchange rate was recorded. Maturities of the forward exchange contracts are short-term (up to one year).
The total value of hedged items recorded by Gorenje, d.d. as at 31 December 2011, for which interest rate swap contracts were concluded, amounted to TEUR 157,066. The interest rate swap contracts are used to hedge against the fluctuation of the variable EURIBOR interest rate. Maturities of the interest rate swap contracts are long-term, i.e. progressively until 15 June 2016.
Other financial liabilities mostly include liabilities referring to the purchase of receivables by the parent company in the amount of TEUR 3,434.
| Currency | Amount in currency (in 000) | Amount in TEUR | Interest rate | |
|---|---|---|---|---|
| from | to | |||
| EUR | 131.934 | 131.934 | 1,77% | 12,00% |
| CZK | 215.197 | 8.345 | 1,70% | 2,34% |
| HUF | 85.702 | 272 | 8,03% | 8,03% |
| TRY | 8.874 | 3.632 | 10,50% | 17,00% |
| RSD | 6.609 | 64 | 13,75% | 13,75% |
| DKK | 27.140 | 3.651 | 3,87% | 5,20% |
| UAH | 490 | 46 | 12,70% | 12,70% |
| Total | 147.944 | |||
| Currency | Amount in currency (in 000) | Amount in TEUR | Interest rate | |
|---|---|---|---|---|
| from | to | |||
| EUR | 21.845 | 2,36% | 5,95% | |
| Total | 21.845 | |||
The effective interest rate does not deviate essentially from the contractual interest rate.
| Collateralisation | in TEUR |
|---|---|
| Bills | 98.208 |
| Financial covenants | 92.672 |
| Guarantees | 69.383 |
Some non-current borrowings are simultaneously secured by several forms of collateralisation. Guarantees include guarantees and sureties issued by Gorenje, d.d. and Gorenje BeteiligungsGmbH to the commercial banks to secure liabilities of the Group companies.
The loan contracts concluded between the Gorenje, d.d. and banks include financial covenants that are expected to be fully met in the financial year. The covenants are reviewed on the basis of the audited consolidated financial statements for the respective financial year. A portion of financial covenants relating to borrowings from International Finance Corporation (IFC) are reviewed on a three-month basis.
Because of the expected breach of financial covenants, the Company applied at the year end 2011 to its bank partners (except International Finance Corporation IFC) for waiver of financial covenants requiring financial statements for 2011. The waiver was approved by all bank partners for all credit lines and guarantee transactions secured by financial covenants. The waiver of financial covenants applies to the financial year 2011.
Financial covenants relating to borrowings from International Finance Corporation (IFC) were met in full at the year end 2011.