(18) Accounts Payable and Other Liabilities
Accounts payable and Other liabilities classified on due dates as at December 31 were as follows:
| € millions | Term less than 1 year |
Term between 1 and 5 years |
Term more than 5 years |
Balance on 12/31/2007 |
Balance on 12/31/2006 |
| Payables to suppliers | 688 | 6 | 0 | 694 | 581 |
| Advanced payments received | 27 | 4 | 0 | 31 | 63 |
| 715 | 10 | 0 | 725 | 644 | |
| Other employee-related liabilities | 1,060 | 6 | 49 | 1,115 | 999 |
| Other taxes | 262 | 0 |
0 | 262 | 220 |
| Other financial liabilities | 57 | 4 | 0 | 61 | 40 |
| Other liabilities | 52 | 11 | 7 | 70 | 86 |
| Bank loans and overdraft | 25 | 2 |
0 | 27 | 26 |
| 1,456 | 23 | 56 | 1,535 | 1,371 | |
| 2,171 | 33 | 56 | 2,260 | 2,015 |
Liabilities are unsecured, except for the retention of title and similar rights which are customary in our industry. Effective interest rates of bank loans were 8.03% in 2007, 8.08% in 2006, and 7.22% in 2005.
As at November 5, 2004, SAP AG entered into a €1 billion syndicated revolving credit facility agreement with an initial term of five years. The use of the facility is not restricted by any financial covenants. Borrowings under the facility bear interest of EURIBOR or LIBOR for the respective currency plus a margin ranging from 0.20% to 0.25% depending on the amount drawn. We are also required to pay a commitment fee of 0.07% per annum on the unused available credit. As at December 31, 2007, and 2006, there were no borrowings outstanding under the facility.
As at October 1, 2007, SAP AG entered into a €5 billion credit facility agreement (subsequently reduced to €4.45 billion as at December 31, 2007) with Deutsche Bank AG maturing on December 31, 2009. The credit facility was entered into in connection with the acquisition of Business Objects S.A. Initially the credit facility served as a bank guarantee to back up the tender offer. The use of the facility is not restricted by any financial covenants. Borrowings under the facility bear interest of EURIBOR plus a margin ranging from 0.25% to 0.30% depending on the amount drawn. We are also required to pay a commitment fee of 0.075% per annum on the unused available credit. As at December 31, 2007, there were no borrowings outstanding under the facility.
Within the acquisition process and with the finalization of the squeeze-out, the facility has been voluntarily reduced to an amount of EUR 2.95 billion which corresponds to the drawdown on the facility as at February 18, 2008.
Additionally, as at December 31, 2007, and 2006, SAP AG had available lines of credit totaling €599 million and €599 million, respectively. As at December 31, 2007 and 2006, there were no borrowings outstanding under these lines of credit.
As at December 31, 2007 and 2006, certain subsidiaries had lines of credit available that allowed them to borrow in local currencies at prevailing interest rates up to €44 million and €109 million, respectively. Total aggregate borrowings under these lines of credit, which are guaranteed by SAP AG, amounted to €27 million as at December 31, 2007, and €26 million as at December 31, 2006.
