Financial income and borrowing costs are detailed below:

2011 2010 Change
In thousands of Euro
Income:
- Interest receivable from affiliated companies 3 (3)
- Interest receivable from clients 147 248 (101)
- Bank and post office interest payable 2,284 1,625 659
- Interest payable on financial receivables 597 349 248
- Interest on hedging 177 177
- Other 882 666 216
Total financial income 4,087 2,891 1,196

2011 2010 Change
In thousands of Euro


Borrowing costs payable to affiliated companies 103 144 (41)
Borrowing costs paid to others:


- Interest payable on bank accounts 638 24 614
- Interest payable on debenture loans 13,246 11,846 1,400
- Interest payable on bank loans 8,315 8,845 (530)
- Interest payable to other lenders 3,051 2,508 543
- Cash discounts to clients 867 944 (77)
- Bank charges on loans 463 436 27
- Hedging costs 184 - 184
- Borrowing costs of discounting termination benefits 2,262 2,637 (375)
- Interest payable on lease agreements 205 207 (2)
- Other 2,519 6,314 (3,795)
Total borrowing costs to others 31,750 33,761 (2,011)
Total borrowing costs 31,853 33,905 (2,052)

2011 2010 Change
In thousands of Euro


Exchange gains 13,149 19,146 (5,997)
Exchange losses 14,081 20,664 (6,583)
Total net exchange gains/(losses) (932) (1,518) 586
Net financial income/(borrowing costs)(28,698)(32,532)3,834

The balance of financial income (charges) in 2011 was negative (- €/000 28,698), less than the previous year (- €/000 32,532). Net borrowing costs, net of costs incurred in 2010 to settle a tax assessment, increased by €/000 2,397, despite the positive effect of currency management and the reduction in average debt, mainly in relation to the increase in variable tax rates and refinancing from sources with higher margins.