Ryanair 2006 Annual Report Download - page 52

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(Continued)
Notes
52
ANNUAL REPORT & FINANCIAL STATEMENTS 2006
15 FINANCIAL INSTRUMENTS (Continued)
Group: (Continued)
(b) Maturity and interest rate risk profile of financial assets and liabilities (Continued)
Interest rate repricing:
Floating interest rates on financial liabilities are generally referenced to inter-bank interest rates (EURIBOR). Secured long term
debt and interest rate swaps typically re price on a quarterly basis with finance leases re pricing on a semi-annual basis.
Fixed interest rates on financial liabilities are fixed for the duration of the structures (typically between 10 and 12 years).
The group holds significant cash balances that are invested on a short-term basis. At March 31, 2006 all of the group's cash and
liquid resources had a maturity of one year or less and attracted a weighted average interest rate of 2.71% (2005: 2.19%). The
group had no other financial assets at either March 31, 2006 or 2005. All interest rates attaching to these balances are floating rate
and will reprice within the year.
Financial assets:
Within 2006 Within 2005
1 year Total 1 year Total
000 000 000 000
Floating rate
Cash and cash equivalents1,439,004 1,439,004 872,258 872,258
Cash > 3 months 328,927328,927 529,407 529,407
Restricted cash 204,040 204,040 204,040 204,040
Total financial assets 1,971,971 1,971,971 1,605,705 1,605,705
Interest rates on cash and liquid resources are generally based on the appropriate EURIBOR, LIBOR or bank rates dependant on the
principal amounts on deposit.
(c) Foreign currency risk
The group has exposure to various currencies (principally Sterling pounds and US dollars) due to the international nature of its
operations. The group manages this risk by matching Sterling revenues against Sterling costs. Any unmatched Sterling revenues
are used to fund forward foreign exchange contracts to hedge the US dollar currency exposures that arise in relation to fuel,
maintenance, aviation insurance and capital expenditure costs - including advance payments to Boeing for future aircraft deliveries.
Further details of the hedging activity are carried out by the group are given in note 3.