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DES - Online Annual Report 2007

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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.

Continue reading: 12. Deferred tax liabilities

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