Annual report 2012

28. Interest-bearing borrowings

This note provides information about the contractual terms of the Group's interest-bearing borrowings. For more information relating to interest rate and foreign currency risk management refer to Note 35 – Financial risk management.

EUR thousand 2012 2011
Short-term borrowings    
Borrowings from foreign banks 116,934 146,515
- short-term portion of long-term borrowings -29,580 -29,580
- long-term portion of borrowings 87,354 116,935
Borrowings from local banks 10,799 16,845
- short-term portion of long-term borrowings -5,619 -5,884
- long-term portion of borrowings 5,180 10,961
Total long-term borrowings 92,534 127,896
Borrowings from domestic banks 62 68
Short-term portion of long-term borrowings from foreign banks 29,580 29,580
Short-term portion of long-term borrowings from domestic banks 5,619 5,884
Interest 23 48
Total short-term borrowings 35,284 35,580


Contractual terms agreed on borrowings

EUR thousand Long-term portion 31 Dec 2012 Short-term portion 31 Dec 2012 Agreed interest rate Last payment due Collateral
Non-current financial liabilities to banks 92.104 35.080 3mEURIBOR + 1.900 % 2014 blank bills of exchange
3mEURIBOR + 2.100 % 2014 blank bills of exchange
3mEURIBOR + 2.900 % 2014 blank bills of exchange
6mEURIBOR - 0.025 % 2017 bank guarantee
3mEURIBOR + 0.083 % 2017 none
3mEURIBOR - 0.018 % 2017 bank guarantee
3mEURIBOR + 0.105 % 2017 none

All borrowings from foreign banks are denominated in euro (EUR). One portion of these borrowings bears a variable interest rate. For the remainder, the variable interest rate was replaced by a fixed interest rate, by means of financial derivatives obtained for this purpose.

As at 31 December 2012, the outstanding amount of borrowing from the EIB was EUR 106,641 thousand (2011: EUR 130,339 thousand). Principals gradually fall due for payment until 2017.

Banks that have approved long-term loans require that certain debt covenants specified in loan agreements be maintained, including: consolidated total debt, consolidated net tangible worth, EBITDA, consolidated total debt/EBITDA. Failure to achieve these covenants may result in a demand for early repayment of these borrowings. As at 31 December 2012, the Group was in compliance with all of its debt covenants. As at the reporting date, 31% of Group's loans were collateralised.