15. Interest-Bearing Liabilities (continued) (c) Medium-term notes (d) Long-term notes The Santos Group has a A$500.0 million (2003: A$500.0 million) Australi an medium-term note program. At 31 December 2004, A$20.0 million (2003: A$20.0 million) of medium-term notes have been issued at fixed r ate and swapped into floating rates of interest of 6.25% (2003: 6.20%), maturing in 2008. US$170.0 million of long-term notes were issued to institutional investors in 1993 at an annual effective interest rate of 6.95% and are repayable in five annual US dollar instalments which commenced in December 2001. As at 31 December 2004, US$34.0 million (A$43.7 million) remains outstanding (2003: US$68.0 million equivalent to A$90.8 milli on). A further US$290.0 million (A$372.5 million) (2003: US$290.0 million equivalent to A$387.3 million) of long-term notes were issued to instituti onal investors in 2000 at an annual effective interest rate of 8.37% and are repayable at varying maturity dates between 2007 an 2015. In addition US$300.0 million (A$385.3 million) (2003: US$300.0 million equivalent to A$400.6 million) of long-term notes were issued to instituti onal investors in 2002 at an annual effective interest rate of 6.11% and are repayable at varying maturity dates between 2009 and 2022. The Santos Group has entered into interest rate swap contracts to manage th e exposure to interest rates. This has resulted in a weighted average interest rate on interest-bearing liabilities of 5.50% as at 31 December 2004 (2003: 4.72%). All facilities are unsecured and arranged through a controlled entity, Santos Finance Ltd, and are guaranteed by Santos Ltd. Consolidated Santos Ltd 2004 2003 2004 2003 16. Provisions $million $million $million $million Current Employee benefits 48.7 47.7 47.6 46.3 Future restoration costs 3.9 7.6 0.9 1.2 Non-executive Directors’ retirement benefits 0.2 – 0.2 – 52.8 55.3 48.7 47.5 Non-current Future restoration costs 129.4 113.7 43.8 36.0 Non-executive Directors’ retirement benefits 2.2 2.3 2.2 2.3 131.6 116.0 46.0 38.3 Reconciliations of the carrying amount of the non-executive Directors’ retirem ent  benefits are set out below: Current Carrying amount at beginning of the year – 0.6 – 0.6 Transfer from/(to) non-current provision 0.2 (0.3) 0.2 (0.3) Payments made during the year – (0.3) – (0.3) Carrying amount at end of the year 0.2 – 0.2 – Non-current Carrying amount at beginning of the year 2.3 1.7 2.3 1.7 Provision made during the year 0.1 0.3 0.1 0.3 Transfer from/(to) current provision (0.2) 0.3 (0.2) 0.3 Carrying amount at end of the year 2.2 2.3 2.2 2.3 17. Other Liabilities Current Deferred foreign currency fluctuations on borrowings 3.5 10.6 – – Accrued fluctuations on foreign currency swaps 11.2 – – – 14.7 10.6 – – Non-current Deferred foreign currency fluctuations on borrowings 33.9 55.7 – – The deferred foreign currency fluctuations on US dollar borrowings designated as hedges reflect the deferred gains arising from the movement of the Australian dollar against the US dollar from the inception of the drawdown of  the borrowings to balance date. Annual Report 2004 61