FINANCING IN 2004
The Council of State authorised the CAA to take out long
term loans totalling 30 million euros and to provide absolute
unsecured guarantees for loans, to a maximum of 50 million
euros, to its subsidiaries providing airport and air navigation
services and to CAA property companies.
The Group’s total interest-bearing loans at the end
of the year amounted to 212.9 million euros, which is a reduction
from the previous year of 3.1 million euros. At the end of
the year the Group had long term interest-bearing debt totalling
202.0 million euros. The CAA took out no new long term loans
during the year nor did it provide absolute guarantees for
loans by its subsidiaries. The Group opened a 1.0 million
euro account with overdraft facilities but without CAA guarantees
for one of its companies.
The financial status of the commercial enterprise remained
good during the year. Cash flow developed positively compared
with the previous year, assisted by a significant growth in
flight operations and passenger numbers. The outcome of this
positive trend was a cash flow on business operations before
capital spending of 56.7 million euros, which means an increase
over the previous year of 2.7 million euros. Cash flow after
capital spending items was a positive sum of 14.4 million
euros.
The commercial enterprise had interest-bearing debt of 130.0
million euros at the end of the year, of which 124.9 million
euros were long term loans. During the year the CAA reduced
its debt burden by 2.9 million euros.
The average interest on interest-bearing loans at the end
of the year was about 2.6 %. In accordance with the fluctuation
limits set by financial risk management policy, about a quarter
(26 %) of the debt burden was protected against interest rate
changes by derivative agreements. The price of protective
contracts has been taken into account in calculating the average
interest on debt. In addition to the foregoing, interest fluctuation
risks were reduced by short and long-term interest investments
in the balance sheet. Derivative contracts and interest rate
investments together comprised about two thirds (65 %) of
the loan portfolio interest risk at the end of the year.
All financial investments are valued in the balance sheet
according to their purchase price or a lower probable sale
price.
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