Chrysler 2007 Annual Report Download - page 295

20. Non-current financial payables
At December 31, 2007, non-current financial payables amount to 2,809,388 thousand euros, a decrease of 641 thousand euros over
December 31, 2006. The balance relates to the following:
At At
(in thousands of euros) December 31, 2007 December 31, 2006 Change
Financial payables to Group companies 2,800,000 2,800,000 –
Financial guarantee contracts 9,388 10,029 (641)
Total Non-current financial liabilities 2,809,388 2,810,029 (641)
Financial payables to Group companies relate to the euro loans due beyond one year extended by Fiat Finance S.p.A. in the first
half of 2006. Interest accrued on these loans ranges between 6.20% and 7.18%.
An analysis of loans received by repayment date is as follows:
(in thousands of euros) At December 31, 2007
Maturity 2010 400,000
Maturity 2011 1,400,000
Maturity 2013 1,000,000
Total Financial payables to Group companies 2,800,000
The fair value of these loans at December 31, 2007 is approximately 2.9 billion euros; the difference between this and their original
value (being their nominal value) is essentially due to the improvement in the credit merit of Fiat S.p.A. Fair value was calculated
by taking market rates and adjusting these as appropriate to take into account Fiat’s credit spread at the balance sheet date.
The item Financial guarantee contracts consists of the fair value of the liabilities assumed as the result of providing guarantees.
After assessing the possibility of any risks for which provisions for contingent liabilities must be recognised and after determining
that this item relates essentially only to guarantees provided on behalf of Group company loans, it has been concluded that the
present value of the fees receivable for guarantees given (see Other financial assets in Note 12) represents the best estimate of the
fair value of these guarantees.
This item may be analysed by maturity date as follows:
At At
(in thousands of euros) December 31, 2007 December 31, 2006
Financial guarantee contracts
due within one year 2,631 2,512
due after one year but within five years 6,114 7,473
due beyond five years 643 44
total 9,388 10,029
Fiat S.p.A. Financial Statements at December 31, 2007 - Notes to the Financial Statements294