Projected Interest Costs: Based on current interest rates and selected interest scenarios.
Projected interest costs in the Budget Report:
The amount in the budget report predicts the interest costs for the period. It is based on the existing interest rates on the loans and the selected interest scenarios.
Not linked to payments:
The presented amount only refers to the cost for the reporting period and is not linked to payments.
Use of interest scenarios in the forecast:
For floating-rate loans with a fixed interest rate during the reporting period, the existing interest rate is used, and the selected interest scenario does not affect the forecast. If the reporting period extends beyond the next interest binding, interest scenarios are used to assume the upcoming interest rate and thus calculate the interest cost.
Interest scenarios in the forecast for floating-rate loans:
For floating-rate loans with different interest binding intervals, interest scenarios are applied from the first scheduled interest binding. After the initial interest binding, interest scenarios are used for the forecast with a new interest rate per quarter.