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DES - Online Annual Report 2008

Interest rate risk

A sensitivity analysis was implemented to determine the effect of potential interest rate changes. Based on the financial assets and liabilities underlying an interest rate risk on the balance sheet date, this shows the effect of a change on the Group’s equity. Interest rate risks arose on the balance sheet date only for credit borrowed and the associated interest rate hedges, which have been accounted for at present value as cash flow hedges in equity. An increase in the market interest rate of 100 basis points would lead to an increase in equity of €14,856 thousand. The majority of the loan liabilities have fixed interest conditions. On the balance sheet date, credit of €157,400 thousand (previous year: €110,600 thousand) was hedged with derivative financial instruments.

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