Non-current liabilities, Short-Term Borrowings

An amount of EUR 449.9 million of long-term debt was repaid in the nine months period ended September 30, 2009. On January 29, 2009, the Telekom Austria Group issued a bond on the Eurobond market with a face value of EUR 750.0 million, a maturity of 7 years, disagio and issue costs of EUR 8.0 million and a coupon of 6.375%.

Long-term debt increased mainly due to the issuance of the bond which was partly compensated by the shift of a bond under the EMTN program to short-term borrowings.

In the nine months period ended September 30, 2009 further 12 transactions of Cross Border Lease were early terminated. As a result the Telekom Austria Group realized an expense of EUR 7.6 million and income from the realization of the deferred unamortized balance on the sale of the tax benefit allocated to these transactions amounting to EUR 8.8 million. Thus the Telekom Austria Group recognized the net amount of EUR 1.2 million in interest income. As a result of the early termination, contingent liabilities decreased to EUR 74.1 million.

In the third quarter the USD deposit in the amount of USD 85.0 million serving as securitization of guarantees required in connection with the downgrade of AIG’s rating in 2008 was repaid leading to a cash inflow of EUR 66.0 million. In order to avoid any foreign exchange rate risk a EUR 100.0 million deposit serving as collateral maturing in December 2011 was opened in July 2009.