7. Finance income and expense
The following table summarizes finance income and expense for the years ended 31 December 2014 and 2013.
|
Year ended 31 December, |
|
(thousands of €) |
2014 |
2013 |
Finance income |
|
|
Interest on bank deposit |
1,155 |
1,179 |
Effect of discounting long term R&D incentives receivables |
920 |
409 |
Currency exchange gain |
198 |
590 |
Other financial income |
17 |
4 |
Total Financial income |
2,291 |
2,182 |
|
|
|
Finance expense |
|
|
Interest expenses |
(110) |
(156) |
Currency exchange loss |
(652) |
(1,130) |
Other financial charges |
(105) |
(116) |
Total Financial expense |
(867) |
(1,402) |
|
|
|
Total Finance income |
1,424 |
780 |
Finance income increased slightly by €0.1 million, or 5%, from €2.2 million for the year ended 31 December 2013 to €2.3 million for the year ended 31 December 2014.
Finance expense decreased by €0.5 million, or 38% from €1.4 million for the year ended 31 December 2013 to €0.9 million for the year ended 31 December 2014, primarily reflecting lower exchange rate losses arising from U.S. dollars. Interest expenses are related to interests paid on financial lease.