Final balance

✔ In line of principle, the final balance shall be made in one payment within 60 days of receipt of payment request
✔ If payments are made after the time limit, the Contracting Authority shall pay default interest

The grant shall be liquidated to the Grant Beneficiary by the Contracting Authority in one payment within 60 days of receipt of the payment request by the Contracting Authority.

The payment of the balance shall be made within 90 days of receipt of the payment request by the Contracting Authority in case of:

  • One beneficiary with affiliated entity(ies)
  • If ore than one beneficiary is party to the contract
  • If the Commission is not the Contracting Authority
  • For grants exceeding EUR 5,000,000

The payment request is deemed accepted if asked by using Annex V and if there is no written reply to the Contracting Authorities within the deadlines set above.

The request of payment is to be accompanied by:

  • a narrative and financial report
  • an expenditure verification report (if required)

The Contracting Authority may suspend the time-limit for payments by notifying the Coordinator that:

  • the amount indicated in its request is not due, or
  • Proper supporting documents have not been supplied;
  • The Contracting Authority needs to request clarifications, modification or additional information to the narrative and financial reports, or
  • The Contracting Authority has doubts on the eligibility of the expenditures and needs additional checks, or
  • It is necessary to verify whether presumed substantial errors, irregularities or fraud have occurred in the grant award procedure or the implementation of the Action, or
  • It is necessary to verify whether the Beneficiary(ies) have breached any substantial Contract obligation, or
  • The visibility obligations (as per General Conditions, art. 6) have not been complied with.

In such cases, the EC may request clarification, alteration or additional information, which must be produced within 30 days of the request. The time-limit starts running again on the date the required information is received.

The time-limit for payment shall start running again on the date on which a correctly formulated request for payment is recorded.
In case the information provided prove that there has been substantial errors, irregularities, fraud or breach of obligations, the Contracting Authority may refuse to proceed further with payments, and may terminate the contract accordingly.

Interests on late payment

If the Contracting Authority pays the Coordinator after the time limit, it shall pay default interest as follows:

  • at the re-discount rate applied by the Central Bank of the country of the Contracting Authority if payments are in the currency of that country;
  • at the rate applied by the European Central Bank if payments are in EURO;
  • on the first day of the month in which the time-limit expired, plus three and a half percentage points. The interest will be payable for the time elapsed between the expiry of the payment deadline and the date on which the Contracting Authority’s account is debited.

By the way of exception, when the interest calculated in accordance with this provision is lower or equal to 200 euro, it will be paid to the Coordinator only upon demand submitted within two months of receiving late payments.

The default interest is not considered as an income.

Resources and useful links:
Annex e3h4- Payment request
General Conditions

ATTENTION! The information included in this website refer to the rules of the PRAG 2014. The website is currently under revision to be aligned to the 2016 PRAG.