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Finance costs
 12 Months Ended
Dec. 31, 2020
Text block [abstract]  
Finance costs
7. Finance costs
   
2020
$m
   2019
$m		   2018
$m		 
Financial income
      
  
 
 
   
 
 
   
 
 
 
Financial income on deposits and money market funds
  
 
2
 
   3    2 
  
 
 
   
 
 
   
 
 
 
Interest income on loans and other assets
  
 
2
 
   3    3 
  
 
 
   
 
 
   
 
 
 
  
 
4
 
   6    5 
  
 
 
   
 
 
   
 
 
 
Financial expenses
      
  
 
 
   
 
 
   
 
 
 
Interest expense on external borrowings
  
 
102
 
   78    61 
  
 
 
   
 
 
   
 
 
 
Interest expense on lease liabilities
  
 
37
 
   41    39 
  
 
 
   
 
 
   
 
 
 
Capitalised interest
  
 
(1
) 
   (5)    (5) 
  
 
 
   
 
 
   
 
 
 
Unwind of discount on deferred purchase consideration
  
 
1
 
   1    1 
  
 
 
   
 
 
   
 
 
 
Other charges
a
  
 
5
 
   6    5 
  
 
 
   
 
 
   
 
 
 
  
 
144
 
   121    101 
  
 
 
   
 
 
   
 
 
 
Analysed as:
      
  
 
 
   
 
 
   
 
 
 
Financial expenses before exceptional items
  
 
130
 
   121    101 
  
 
 
   
 
 
   
 
 
 
Exceptional financial expenses (note 6)
  
 
14
 
   —      —   
  
 
 
   
 
 
   
 
 
 
  
 
144
 
   121    101 
  
 
 
   
 
 
   
 
 
 
 
a
 
Other charges includes bank charges and
non-bank
interest expense.
During the year, $3m (2019: $13m, 2018: $14m) was payable to the IHG Rewards loyalty programme relating to interest on the accumulated balance of cash received in advance of the consumption of points awarded. The expense and corresponding System Fund interest income are eliminated within financial expenses.
Capitalised interest relates to the System Fund. The rate used for capitalisation of interest was 2.9% (2019: 3.1%, 2018: 3.0%).
Net interest payable on a frozen GAAP basis as calculated for bank covenants was $111m (2019: $99m). Further details are provided on page 181.