Chrysler 2008 Annual Report Download - page 306

21. Non-current financial payables
At 31 December 2008, non-current financial payables amount to €1,810,531 thousand, a decrease of €998,857 thousand over 31
December 2007. The balance relates to the following:
At At
(€ thousands) 31 December 2008 31 December 2007 Change
Financial payables to Group companies 1,800,000 2,800,000 (1,000,000)
Financial guarantee contracts 10,531 9,388 1,143
Total Non-current financial liabilities 1,810,531 2,809,388 (998,857)
Financial payables to Group companies relate to euro-denominated loans received from Fiat Finance S.p.A. in the first half of 2006
which are due beyond 12 months. The decrease is attributable to the early repayment of a €1 billion loan in October 2008. For those
loans still outstanding, interest is payable at rates of between 6.35% and 7.18%.
An analysis of loans by repayment date is as follows:
(€ thousands) At 31 December 2008
Maturity 2010 400,000
Maturity 2011 400,000
Maturity 2013 1,000,000
Total Financial payables to Group companies 1,800,000
The fair value of these loans at 31 December 2008 of approximately €1.6 billion was calculated using market rates of interest
appropriately adjusted to reflect the credit spreads applicable to Fiat at the balance sheet date.
The item Financial guarantee contracts consisted of the fair value of the liabilities assumed from guarantees issued. After
assessing the potential risks in relation to which contingent liabilities must be recognised and given that this item relates
essentially to guarantees provided on behalf of loans to Group companies, it has been concluded that the present value of fees
receivable for guarantees given (see Other financial assets in Note 13) represented the best estimate of the fair value of these
guarantees.
The breakdown by maturity date is as follows:
At At
(€ thousands) 31 December 2008 31 December 2007
Financial guarantee contracts
due within one year 3,418 2,631
due after one year but within five years 6,617 6,114
due beyond five years 496 643
Total 10,531 9,388
Fiat S.p.A. Statutory Financial Statements at 31 December 2008 305