Financial Statements

Notes to the Consolidated Financial Statementsfor the year to 31 December 2008

20. Bank loans and overdrafts

Bank overdrafts repayable on demand 22.6 12.2
Bank loans 1,289.9 708.5
1,312.5 720.7
Amount due for settlement within one year 23.4 12.2
Amount due for settlement after one year 1,289.1 708.5
Total bank borrowings 1,312.5 720.7
Bank overdraft
Bank loans
Analysis of borrowings by currency:    
31 December 2008  
Sterling 0.1 1,030.0
Canadian dollars 18.4
Euros 106.3
Ghanaian cedis 4.1
US dollars 153.6
22.6 1,289.9
31 December 2007  
Sterling 0.7 295.0
Canadian dollars 8.0
Ghanaian cedis 3.5
US dollars 413.5
12.2 708.5

The Directors are unable to estimate reliably the impact of the Group's credit risk on the fair value of the bank loans at 31 December 2008, which was before the successful conclusion of the refinancing (2007: fair value approximates book value). As set out in note 21, at 31 December 2008 the market value of the quoted Eurobonds was 32% of their book value.

Bank borrowings and overdrafts are arranged at floating rates of interest, from 3.82% to 19.75% (2007: 5.25% to 18.0%).

Secured bank loans and overdrafts totalled £23.4m (2007: £4.5m). Secured bank loans and overdrafts are secured on certain fixed asset properties and land.

On 24 December 2008 the Group announced that the providers of its bank facilities and its private placement noteholders had agreed to defer the testing date into 2009 of certain financial covenants which had been due for testing on 31 December 2008. Had this deferral not been obtained, the Group would have been in breach of an interest cover covenant at the year-end which could have resulted in all bank loans being presented as repayable on demand in these financial statements. However, as a result of this deferral, the Group remained in full compliance with all its existing covenants and loan terms in the current and preceding period. The Override Agreement signed on 7 April 2009 includes new financial covenants with which the Group is fully compliant and which supersede those set out in the old financing agreements, including the covenant for which the test was deferred into 2009 – see note 37.