12. Net financial income/(borrowing costs) €/000 (32,253)

Below is the breakdown of borrowing costs and income:

2012 2011 Change
In thousands of Euros
Income:
- Interest receivable from affiliated companies
- Interest receivable from clients 142 147 (5)
- Bank and post office interest payable 824 2,284 (1,460)
- Interest payable on financial receivables 509 597 (88)
‘ –Interest on hedging 494 177 317
- Other 47 882 (835)
Total financial income 2,016 4,087 (2,071)

 20122011Change
In thousands of euro
Borrowing costs payable to affiliated companies 300 103 197
Borrowing costs paid to others:
- Interest payable on bank accounts 2,167 638 1,529
- Interest payable on debenture loans 14,672 13,246 1,426
- Interest payable on bank loans 8,551 8,315 236
- Interest payable to other lenders 2,799 3,051 (252)
- Cash discounts to clients 553 867 (314)
- Bank charges on loans 2,151 463 1,688
- Hedging costs - 184 (184)
- Borrowing costs from discounting back post employment benefits 2,001 2,262 (261)
- Interest payable on lease agreements 180 205 (25)
- Other 235 2,519 (2,284)
Total borrowing costs Vs others 33,309 31,750 1,559
Total borrowing costs 33,609 31,853 1,756
 

2012 2011 Change
In thousands of Euros
Exchange gains 11,016 13,149 (2,133)
Exchange losses 11,676 14,081 (2,405)
Total net exchange gains/(losses) (660) (932) 272
Net financial income (borrowing costs)(32,253)(28,698)(3,555)
 

The balance of financial income (borrowing costs) in 2012 was negative by €/000 32,253, registering an increase compared to the sum of €/000 28,698 of the previous year. This change was affected by the increase in debt along with an increase in costs and charges for debt refinancing. In 2012, borrowing costs amounting to €/000 6,920 were capitalised, in compliance with IAS 23.