Annual Report 2013 | Suomeksi |

13 Finance costs - net

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EUR million Note 2013 2012
Interest expense
Borrowings -363 -379
Other interest expense -1 -1
Capitalised borrowing costs 19 69 80
Total -295 -300
Interest income
Loan receivables 38 51
Other interest income 4 3
Total 42 54
Fair value gains and losses on financial instruments 7
Fair value change of interest rate derivatives not getting hedge accounting status -16 -12
Fair value change of hedging derivatives in fair value hedge relationship 25 39
Fair value change of hedged items in fair value hedge relationship -24 -39
Rate difference on forward contracts -1 -11
Total -16 -23
Exchange gains and losses
Loans and receivables 7 -214 246
Cross currency interest rate derivatives 7 19 -12
Foreign currency derivatives 7 195 -231
Interest income on share of State Nuclear Waste Management Fund 30 9 16
Unwinding of discount on nuclear provisions 30 -35 -36
Unwinding of discount on other provisions 31, 32 -16 -15
Other financial income 1 1
Other financial expenses -8 -11
Total -49 -42
Finance costs - net -318 -311
Interest expenses include interest expenses on interest-bearing loans, interest on interest rate and currency swaps and forward points on forward foreign exchange contracts hedging loans and receivables.
Further information can be found in the Notes mentioned in the table.
Interest income includes EUR 29 million (2012: 40) from shareholders' loans in Finnish and Swedish nuclear companies and EUR 6 million (2012: 7) from deposits.
Fair value gains and losses on financial instruments include change in clean price of interest rate and cross currency swaps not getting hedge accounting and fair value changes of interest rate derivatives in hedge relationship and hedged items. Accrued interest on these derivatives is entered in interest expenses of borrowings. Fair value gains and losses include also rate difference from forward contracts hedging loans and receivables without hedge accounting.
Exchange gains and losses includes exchange rate differences arising from valuation of foreign currency loans and receivables and exchange rate differences from forward foreign exchange contracts and interest rate and currency swaps.
Fair value changes on interest rate and currency derivatives
EUR million 2013 2012
Interest rate and cross currency swaps
Interest expenses on borrowings 18 29
Exchange rate difference from derivatives 19 -12
Rate difference in fair value gains and losses on financial instruments 1) 9 27
Total fair value change of interest rate derivatives in finance costs - net 46 44
Forward foreign exchange contracts
Interest expenses on borrowings -89 -108
Exchange rate difference from derivatives 195 -231
Rate difference in fair value gains and losses on financial instruments -1 -11
Total fair value change of currency derivatives in finance costs - net 105 -350
Total fair value change of interest and currency derivatives in finance costs - net 151 -306
1) Fair value gains and losses on financial instruments include fair value changes from interest rate swaps not getting hedge accounting amounting to EUR -16 million (2012: -12) and fair value change of hedging derivatives in fair value hedge relationship EUR 25 million (2012: 39), totalling EUR 9 million (2012: 27).
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