Annual report 2010 - plazacenters

Financial statements
Notes to the consolidated financial statements
continued
Note 5 – Cash and cash equivalents
Interest rate as of December 31, December 31,
December 31, 2010 2009
Bank deposits and cash denominated in 2010 €’000 €’000
Mix of fixed and floating
interest rates between 0-4.3%
EURO (“EUR”) – see (1) below 111,789 101,165
Hungarian Forints (HUF) 0%-5.5% 422 2,112
Polish Zlotys (PLN) 0%-3.7% 6,171 8,744
Czech Crowns (CZK) 0%-0.8% 458 2,322
Indian Rupee (INR) 0%-6.5% 3,282 2,105
Latvian Lats (LVL) Mainly 0.6% 226 541
United States Dollar (USD) 0.25%-0.75% 14,587 2,377
Romanian Lei (RON) Mainly 0% 285 2,972
Serbian Dinar (RSD) Mainly 0% 23 253
New Israeli Shekel (NIS) 0% 541 5
In other currencies 0% 17 –
Total 137,801 122,596
1 As at December 31, 2010, cash in banks is deposited for periods between overnight deposits and three months deposits. The Group has deposits in several commercial banks.
Fixed deposits bear interest rates varying between 0.2% and 4.3%, while floating deposits bear overnight interest rates, as determined by the EONIA overnight interest benchmark.
The Group’s exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note 35.
Note 6 – Restricted bank deposits
Interest rate as of December 31, December 31,
December 31, 2010 2009
2010 €’000 €’000
Short-term restricted bank deposits
In EUR See 1 and 4 below 23,635 37,456
In USD 0% 1,333 –
In PLN See 2 below 3,273 1,490
In HUF MNB-0.5%* 1,713 –
In other currencies 0% – 256
Total short term 29,954 39,202
Long-term restricted bank deposits
In EUR see 3 below 13,469 14,336
In other currencies 0% 2,282 401
Total long term 15,751 14,737
* Hungarian National Bank base rate
As of December 31, 2010, the Group pledged the above restricted bank deposits to secure banking facilities received, to secure
acquisition and construction activities to be performed by the Group, or as guarantees for non-qualified hedging instruments.
1 As of December 31, 2010, EUR 10.6 million are restricted in respect of bank facilities agreements signed to finance Projects in Serbia, Poland, Romania, Hungary, Latvia and the
Czech Republic. This amount carries an annual interest rate ranging between 0% and 4.3%. An additional amount of EUR 2.9 million is cash in restricted deposit in respect of the
swap transactions (see note 16). This amount bears an interest of between 0.2% and 1.2%. Another EUR 1 million are restricted in respect of Interest Rate Swap (“IRS”) performed
in connection with bank facility agreement in Serbia (refer to note 16).
2 As of December 31, 2010 an amount of PLN 9.2 million (EUR 2.3 million) is cash in a restricted account in respect to the purchase of one of the Company’s projects in Poland.
This amount bears an interest between 80% of the Warsaw Interbank bid rate (WIBID) and 3.5%. Other restricted cash is in respect of restriction due to bank facilities
requirements in a total amount of PLN 4 million (EUR 1 million), which bears interest of 3.3% per annum.
3 As of December 31, 2010 an amount of EUR 11.5 million is restricted in respect of the EUR/NIS cross currency IRS transactions (see note 16). The deposits are carrying fixed
interest rates ranging between 0.2%-1.2%. An additional EUR 2 million is restricted in respect of the EUR/PLN cross currency IRS transaction (see note 16).
4 An amount of EUR 9.1 million is restricted in respect of investment in long-term financial instruments (see note 11). This amount is carrying an interest rate of one month EUR Libor.
The Group’s exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note 35.
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Plaza Centers N.V. Annual report 2010