Note 6: Financing income and expenses
In € millions |
2016* |
2017 |
||
|
||||
Financing income |
25 |
23 |
||
Financing expenses |
(95) |
(90) |
||
Net interest on net debt |
(70) |
(67) |
||
|
|
|
||
Other interest |
|
|
||
Financing expenses related to post-retirement benefits |
6 |
(7) |
||
Interest on provisions |
(28) |
(16) |
||
Other items |
1 |
12 |
||
Net other financing charges |
(21) |
(11) |
||
Total financing income and expenses |
(91) |
(78) |
||
Net financing expenses for the year were €78 million (2016: €91 million). Significant variances are:
- Net interest on net debt decreased by €3 million to €67 million (2016: €70 million), mainly due to lower financing expenses as a result of the repayment of a higher interest bond
- Net other financing charges decreased by €10 million to €11 million (2016: €21 million), mainly due to lower interest on provisions
The average interest rate used for capitalized interest was 2.6 percent (2016: 2.9 percent) and amounted to €2 million (2016: €4 million).
The average interest rate on total debt was 3.1 percent (2016: 3.4 percent).