9. Interest expenses, net
|
2010 |
2009 |
|
|
€ million |
||
|
Interest received on credit balances held with banks |
0.8 |
2.7 |
|
Other interest income |
8.8 |
11.1 |
|
Interest and similar income |
9.6 |
13.8 |
|
Interest paid on liabilities to banks |
–1.0 |
–1.3 |
|
Interest paid on bonds |
–28.8 |
–12.4 |
|
Other interest expenses and similar charges |
–6.0 |
–10.1 |
|
Interest expenses and similar charges (finance costs) |
–35.8 |
–23.8 |
|
Interest expenses, net |
–26.2 |
–10.0 |
There was a negative impact on net interest expense due to the increase in interest charges that arose from the funding negotiations for the US private placement and due to the decline in interest and similar income resulting from the smaller volume of investments. Borrowing costs of €3.1 million (2009: €0.4 million) were capitalised in 2010. The average interest rate of 12.9 per cent (2009: 5.8 per cent) on borrowings in the current period was taken into account in determining the borrowing costs to be capitalised for general borrowings during the reporting period.
