Group	2014 €’000	2013 €’000
Fair value losses on derivatives acquired from borrowers	(1,349)	(90,923)
Termination fees on derivatives that were in cash flow hedge relationships	(147,668)	-
Fair value (losses) / gains on other derivatives	(2,807)	29,922
Hedge ineffectiveness	(6,873)	6,790
Total (losses) / gains on derivative financial instruments	(158,697)	(54,211)

Fair value movements on derivatives are driven by market movements that occurred during the year. The fair value of these swaps are impacted by changes in Euribor rates and borrower derivatives performance levels. Further information on derivative financial instruments is provided in Note 18.

Gains / losses on derivatives acquired from borrowers comprise fair value movements on these derivatives. Other derivatives hedge NAMA’s interest rate risk exposure arising from derivatives acquired from the Participating Institutions. Hedge accounting has not been applied on these derivatives.

During the year, NAMA recognised termination fees of €147.7m (including NARL (in Voluntary Liquidation) €32.7m) on the early termination of certain interest rate swaps. These costs would have arisen as an interest expense over their remaining life, but due to the early termination of the swaps arising from NAMA’s accelerated senior notes repayment, the accelerated loss is being recognised in the current period in the income statement. The swaps were in place to hedge NAMA’s interest rate risk arising from the senior notes in issue. These swaps qualified for hedge accounting and gains / losses were previously recognised in the cashflow hedge reserve.

On acquisition of the loan facility deed and floating charge, NARL (in Voluntary Liquidation) entered into €1.9bn of interest rate swaps to hedge its exposure to interest rate risk arising from the floating rate senior bonds issued to acquire the loan facility deed and floating charge. As the senior bonds have been repaid, the hedged item no longer exists and therefore the interest rate swaps were terminated during the year. A termination fee of €32.7m was paid in 2014.

Following the Board’s review of its strategy and the publication of the Minister for Finance’s Section 227 Review in July 2014, a revised senior bond redemption profile was approved by the Board. The revised senior bond redemption profile includes a target of a minimum of 80% reduction in senior bonds by end 2016. Following Board approval interest rate hedging was aligned to NAMA’s updated strategy which resulted in the termination of €5.43bn of interest rate swaps at a cost of €115m.

At the reporting date, NAMA had €12.75bn (2013: €23bn) of interest rate swaps remaining to hedge its exposure to interest rate risk arising from the senior bonds in issue.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognised in other comprehensive income within equity (see Note 35). The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.

A €6.9m loss was recognised as hedge ineffectiveness in 2014 (2013: €6.8m gain). This net loss is due to €7.1m hedge ineffectiveness which occurred in the year and a hedge ineffectiveness adjustment of €14m in respect of amounts recognised in previous years.

There are no derivatives in the Agency.