11. Bank loans and overdrafts
| in € thousands | 31.12.2007 | 31.12.2006 |
|---|---|---|
| Non-current bank loans and overdrafts | 849,258 | 752,100 |
| Current bank loans and overdrafts | 46,694 | 28,529 |
| 895,952 | 780,629 |
Bank loans and overdrafts are recognised at amortised cost on the balance sheet date. The present value of loans is re-determined on the balance sheet date. To do so, the annuities due up to this time, together with any residual amount according to the redemption schedule, are discounted to the balance sheet date at market rates of interest plus a margin. The fair value of the bank loans and overdrafts at the balance sheet date amounts to €897,972 thousand (previous year: €795,854 thousand).
Bank loans and overdrafts relate to loans raised to finance real property acquisitions and investment projects. Land charges on company properties amounting to €1,077,481 thousand (previous year: €871,829 thousand) serve as collateral.
Discounts are amortised over the term of the loan. In the year under review, €5,756 thousand (previous year: €5,310 thousand) was recognised in income.