Interest on pre-financing - the guidelines are clear that bank interest earned by the coordinator on pre-financing monies is a receipt of the project. The Financial Regulation requires that interest earned from the pre-financing by the coordinator is a receipt. The FP6 contract (Annex II, Article II.27) says that “the coordinator shall inform the Commission of the amount of any interest or equivalent benefits yielded by the pre-financing it has received from the Commission.” The Community financial contribution shall be offset by any interest or equivalent benefits yielded by the pre-financing of the project, as referred to in Article II.27 (see also Article II. 24.5). However, interest earned by contractors once the pre-financing has been transferred to them is not declared as a receipt.