9. Financial expenses
The increase in financial expenses relative to 2007 is basically due to the rise in average indebtedness over the period, mainly resulting from growth in business and from higher investments, and partly as a result of higher interest rates.
|
(thousands of Euro) |
2008 |
2007 |
|
Financial expenses: |
|
|
|
- expenses from hedges of economic exchange risk |
(12,825) |
(8,052) |
|
- expenses from hedges of transaction exchange risk |
(19,501) |
(11,670) |
|
- expenses from hedges of translation exchange risk |
(1,164) |
(66) |
|
- expenses from hedges of interest rate risk |
(196) |
(1,684) |
|
- interest on bank loans |
(37,586) |
(28,246) |
|
- early settlement trade discounts |
(2,296) |
(2,288) |
|
- bank charges and commissions |
(2,520) |
(2,268) |
|
- sundry other financial expenses |
(2,310) |
(1,548) |
|
- interest on advances against receivables |
(303) |
(399) |
|
- interest on loans from other lenders |
(230) |
(376) |
|
- interest on bank overdrafts |
(370) |
(308) |
|
Total |
(79,301) |
(56,905) |
The time value of derivatives hedging economic, transaction and translation exchange risk has been recognized in the statement of income for both fair value hedges and cash flow hedges.