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17 Interest bearing loans and borrowings

    notes   Effective
interest rate
  Maturity
(financial year)
  30 June 2016   30 June 2015
        %       €000   €000
Current                    
Loans granted by current and retired members       3.2%   2017   2,525   6,975
Bank loan to finance settlement of drawing rights       4.5%   n/a   -   7,500
Private facility drawing       2.7%   2017   10,000   10,000
Car lease obligations   26   1.2%   2017   419   1,769
                     
                12,944   26,244
Non-current                    
Loan granted by current and retired members       4.7%   2018-2021   41,640   31,040
Private loan to finance settlement of drawing rights       5.0%   Up to 2049   7,909   7,533
Car lease obligations   26   1.2%   2017   -   310
                     
                49,549   38,883

Loans granted by current and retired members
These loans are held by Stichting Confidentia 2004 on behalf of the current and retired members. This foundation holds pledges on the unbilled receivables and receivables from clients. In the event of the death of a current or former member, his/her professional corporation can demand early repayment of the amount of the loan outstanding at that time.

The loans are repayable according to the following schedule:

Unsubordinated loans Interest rate In €000
 
1 February 2017 Variable 1,950
30 June 2017 4.00% 575
31 December 2017 3.75% 1,750
31 December 2018 5.00% 12,460
31 December 2019 5.00% 11,265
31 December 2020 4.00% 13,790
 
Subordinated loans Interest rate In €000
 
1 February 2019 6.25% 2,375

Bank loan to finance settlement of drawing rights
This loan was obtained from Van Lanschot Bankiers N.V. to finance the partial settlement of drawing rights of retired members in 2006/2007. The original term of the loan was ten years. The loan is being repaid in quarterly instalments of €2.5 million. During 2015/2016 the loan is fully repaid. The interest on the loan was 4.5% per year.

Private facility drawing
EYNL has a facility agreement with EYGF dated 18 December 2013 under which it can draw an amount of €10 million on an as need basis. At year end, an amount of €10 million has been drawn until 30 November 2016 with an interest rate of 2.65% (Per 30 June 2016 a facility of €10 million was drawn until 1 May 2016 with an interest rate of 2.871%).

Private loan to finance settlement of drawing rights
On behalf of EY Europe, EYGS has committed a total of €98.9 million in two loans to finance the settlement of drawing rights in 2008/2009. On 27 June 2012, these loans were transferred to EYGF.

The loans are interest-free and were measured on receipt at the fair value of the future cash flows using a discount rate of 5%. For the financial year 2015/2016 the interest charge due to application of the amortized cost method amounts to €0.4 million (2014/2015 €1.1 million).

In June 2015, a final repayment of €14.8 million was made on the first loan.

The amortized cost of the remaining second loan with a face value of €39.5 million will be assessed annually based on current information on future cash flows (and, if necessary, revising the amortized cost).

Car lease obligations
This is the obligation under the finance lease contracts for cars.