Interest rates

National information on how each EU country calculates statutory interest rates.

Calculation of statutory interest on judicial cooperation in civil and commercial matters can be relevant under several European Union law instruments. However, these instruments do not regulate details on statutory interest and therefore it is national law which stipulates how and on which basis statutory interest rates are to be calculated.

In a cross-border case, such information can be relevant and access to such information necessary. Therefore, the European Judicial Network in civil and commercial matters established factsheets which provide information on how statutory interest is defined by the Member States, whether national law provides for statutory interest and if so, on which legal basis and at which rate/amount. Information can also be found on the circumstances and conditions under which these rates apply and how they are calculated.

Please select the relevant country's flag to obtain detailed national information.

Last update: 18/01/2019

This page is maintained by the European Commission. The information on this page does not necessarily reflect the official position of the European Commission. The Commission accepts no responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice with regard to copyright rules for European pages.

Statutory interest - Belgium

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Statutory interest is the percentage used to calculate the additional amount that has to be paid by a debtor who has not paid his/her creditor on time.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Statutory interest in civil cases (between individuals or between an individual and a trader) is calculated by adding 2 % to the 12- month EURIBOR rate (Euro Interbank Offered Rate).

Commercial transactions (i.e. transactions between traders and/or undertakings) are governed by the Law of 2 August 2002 on combating late payments in commercial transactions (Wet van 2/08/2002 betreffende de bestrijding van de betalingsachterstand bij handelstransacties). That interest rate is applied unless the parties to the transaction have agreed otherwise (contractual interest).

3 If necessary, is there further information available on how to calculate statutory interest?

The six-monthly adjustment of the interest rate for commercial transactions is announced in the Belgian Official Gazette (website Belgisch staatsblad - Moniteur belge: Link opens in new windowhttp://www.ejustice.just.fgov.be/)

Further information can be found on the website of the Federal Public Service for the Economy (Link opens in new windowhttp://economie.fgov.be/)

4 Is there free online access available to the legal basis mentioned above?

Further information can be found free of charge on the website of the Federal Public Service for the Economy (Link opens in new windowhttp://economie.fgov.be/)

Last update: 21/09/2016

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Bulgaria

1 How do you define “statutory interest” in your Member State?  Does your national law provide for statutory interest?

Statutory interest is regulated in the Republic of Bulgaria, but the term is not currently defined in law.

According to legal theory, ‘statutory interest’ is interest that is not agreed but provided for by law. Statutory interest for late payment (default, late-payment interest) is due for late payment of a monetary obligation. In the event of default on a monetary debt, the creditor is always entitled to compensation at the statutory interest rate from the date of delay (see first sentence of Article 86(1) of the Obligations and Contracts Act (ZZD)).

2 If yes, what is the amount/rate and what is the legal basis for it?  If your national law provides for different rates of statutory interest, please indicate briefly the circumstances and conditions under which these rates apply.

Under Article 86(1) of the Obligations and Contracts Act, a debtor defaulting on a monetary obligation is liable for compensation at the statutory interest rate from the date of delay. The rate of statutory interest is established by the Council of Ministers.

Article 294(1) of the Commerce Act (TZ) provides that interest is due between traders, unless otherwise agreed.

Under Article 86(2) of the Obligations and Contracts Act and for the purposes of transposing Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions (OJ, L 48 of 23 February 2011, p. 1), the Council of Ministers adopted Decree No 426 of 18 December 2014 (which took effect on 1 January 2015) establishing the statutory rate of interest on overdue payments. The annual rate of statutory interest on overdue payments is the Bulgarian National Bank base rate applicable from 1 January or 1 July of the current year plus 10 percentage points. The daily rate of statutory interest on overdue payments is 1/360 of the annual rate. The interest rate in force from 1 January of the current year applies for the first half of the year and that in force from 1 July for the second half.

3 If necessary, please give further information on how to calculate statutory interest (for example information on how to calculate the basic rate of statutory interest; whether 'interest on interest', i.e. capitalisation of interests, is applicable in your Member State, etc.).

The Bulgarian National Bank publishes the base rate for the relevant period using a methodology established by the Management Board and publishes it in the State Gazette. The base rate and changes thereto are published on the website of the Bulgarian National Bank: Link opens in new windowhttp://www.bnb.bg/. That website also contains the methodology for establishing the base rate.

Article 10(3) of the Obligations and Contracts Act provides that interest on overdue interest (compound interest) is payable under Bulgarian National Bank rules. However, no such rules have been published.

Article 294(2) of the Commerce Act provides that interest on interest is due only when agreed.

4 Is it possible to get free online access to the legal basis mentioned above? If so, please provide the relevant links.

Information about the base rate and changes thereto is available in English and Bulgarian on the Bulgarian National Bank website: Link opens in new windowhttp://www.bnb.bg/.

The Obligations and Contracts Act, the Commerce Act and other legal acts mentioned above are available in Bulgarian on the website: Link opens in new windowhttp://www.lex.bg.

The Obligations and Contracts Act, the Commerce Act and Council of Ministers Decree No 426 of 18 December 2014 establishing the statutory rate of interest on overdue payments are also available in Bulgarian on the website: Link opens in new windowhttp://www.tita.bg.

Last update: 08/12/2017

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Czech Republic

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Yes. Interest is generally regulated in Sections 1802 to 1806 of Act No 89/2012 (the Civil Code) and is defined as a financial penalty arising automatically ex lege in the form of interest if a debtor defaults on a payment due. The amount of statutory interest is determined in accordance with secondary legislation (currently Government Regulation No 351/2013).

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

The amount of statutory interest is calculated in accordance with the legislation effective on the first day of the debtor’s default.

Czech Government Regulation No 351/2013 of 16 October 2013 has been in force since 1 January 2014. It determines the amount of default interest and the costs associated with the recovery of the debt, it determines the remuneration of the liquidator, the liquidation administrator and a court-appointed member of the body representing a legal entity, and it regulates certain matters relating to the Commercial Gazette and public registers of legal entities and natural persons. Pursuant to the Regulation, the annual amount of default interest is based on the repo rate established by the Czech National Bank for the first day of the calendar period in which the default occurred, increased by eight percentage points. This interest amount then remains unchanged throughout the period of default.

3 If necessary, is there further information available on how to calculate statutory interest?

Interest on a default that started prior to the entry into force of Government Regulation No 351/2013 is governed by the legislation previously in force, i.e. Government Regulation No 142/1994; the version in force on the first day of default must always be referred to.

4 Is there free online access available to the legal basis mentioned above?

Link opens in new windowhttp://www.psp.cz/sqw/sbirka.sqw?cz=351&r=2013

Last update: 06/03/2019

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Моля, имайте предвид, че оригиналната езикова версия на тази страница немски е била наскоро променена. Езиковата версия, която търсите, в момента се подготвя от нашите преводачи.

Statutory interest - Germany

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Yes. The statutory interest rate is stipulated in Section 246 of the German Civil Code (Bürgerliches Gesetzbuch, BGB). If interest is payable on a debt by law or in a legal transaction, the interest rate is four percent per year unless otherwise provided.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Amount/rate of the statutory interest

Criteria for the application of the statutory interest rate

(if necessary)

Legal basis

4 %

Standard rate, unless there are special provisions which require otherwise or an agreement is made to deviate from this rate

Section 246 of the German Civil Code

5 %

For bilateral commercial transactions (with the exception of default interest), unless one of the special provisions applies which requires otherwise

Section 352 of the German Commercial Code (Handelsgesetzbuch, HGB)

5 percentage points above the basic interest rate stipulated by German law (*)

If the borrower defaults on the payment of a debt

Section 288(1) of the German Civil Code

9 percentage points above the basic interest rate stipulated by German law (*)

If the borrower defaults on a payment claim and is not party to the underlying legal transaction.

Section 288(2) of the German Civil Code

5 percentage points above the basic interest rate stipulated by German law (*)

If the consumer defaults on a consumer credit agreement, unless there is a mortgage agreement

Section 497(1), sentence 1 of the German Civil Code

5 percentage points or 9 percentage points above the basic interest rate stipulated by German law (*)

Money debt from the date when litigation is pending (service of the application/the summons), from the due date at the earliest.

Section 291 of the German Civil Code

5 percentage points above the basic interest rate stipulated by German law (*)

For legal costs, from the date the petition for the assessment of costs is received and from the due date, provided that a petition is not required from the date on which the judgement is pronounced.

Section 104(1), sentence 2 of the German Code of Civil Procedure (Zivilprozessordnung, ZPO)

2 % above the basic interest rate stipulated by German law (*),but at least 6 %

For transactions involving cheques or bills of exchange, whereby a statutory interest rate of more than 6 % only applies to domestic bills or cheques

Articles 45 and 46 of the German Act on Cheques (Scheckgesetz);

Articles 28, 48 and 49 of the German Act on Bills of Exchange (Wechselgesetz)

(*) The basic interest rate stipulated by German law is NOT the same as that of the ECB. For details on how it is calculated, please see question 3.

3 If necessary, is there further information available on how to calculate statutory interest?

The basic interest rate stipulated by German law is not the same as the basic interest rate of the ECB. It is calculated in accordance with Section 247 of the German Civil Code and changes on the 1 January and 1 July each year. An overview of the basic interest rate by time period in accordance with Section 247 of the German Civil Code is available in German and English on:

Link opens in new windowhttps://www.bundesbank.de/Navigation/EN/Statistics/Money_and_capital_markets/money_and_capital_markets.html?https=1

In accordance with Section 289 of the German Civil Code, no interest is charged on default interest (prohibition of compound interest).

4 Is there free online access available to the legal basis mentioned above?

The German Civil Code can be accessed in German and English on:

Link opens in new windowhttp://www.gesetze-im-internet.de/bgb/index.html

The other aforementioned laws and regulations can be accessed in German on:

Link opens in new windowhttp://www.gesetze-im-internet.de/zpo/index.html (Code of Civil Procedure, also in English)

Link opens in new windowhttp://www.gesetze-im-internet.de/hgb/index.html (Commercial Code, also partially in English)

Link opens in new windowhttp://www.gesetze-im-internet.de/scheckg/index.html (Act on Cheques)

Link opens in new windowhttp://www.gesetze-im-internet.de/wg/index.html (Act on Bills of Exchange)

Last update: 15/03/2017

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Estonia

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

According to Section 113 of the Law of Obligations Act, when the performance of a monetary obligation is delayed, the creditor may require the debtor to pay interest on arrears (penalty for late payment) for the period from the time the obligation falls due until the obligation is duly fulfilled.

Where the rate of the interest on arrears has not been contractually agreed upon, the creditor can claim interest in the amount specified by law. According to Section 113(1) of the Law of Obligations Act, the statutory interest rate is that specified in Section 94 of the Act plus eight per cent per year. According to Section 94(1) of the Act, the interest rate is applied on a half‑yearly basis and is to be equal to the latest interest rate applicable to the main refinancing operations of the European Central Bank before 1 January or 1 July of each year.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

The interest rate provided for in Section 94 of the Law of Obligations Act is published twice a year by Eesti Pank (the Bank of Estonia) on its website and in the official publication Ametlikud Teadaanded. In calculating the amount of statutory interest, eight per cent is added to this rate in accordance with Section 113(1) of the Act.

For the first half of 2017, the rate provided for in Section 94 was 0.00% and the statutory interest rate was therefore 0.00%+8%=8.00%.

Different rates of statutory interest are not provided for in Estonia. Section 113 of the Law of Obligations Act is applied uniformly to any delay in the performance of a monetary obligation.

3 If necessary, is there further information available on how to calculate statutory interest?

Further information on how to calculate statutory interest is available in Estonian, for example, at the Link opens in new windowTarbijaveeb consumer website and the legal aid website Link opens in new windowJurist Aitab.

4 Is there free online access available to the legal basis mentioned above?

The Law of Obligations Act is published on the Link opens in new windowState Gazette website and the translation into English is available Link opens in new windowhere.

Information on the European Central Bank's latest interest rate on the main refinancing operations is available on the Link opens in new windowwebsite of the Bank of Estonia.

Last update: 27/06/2019

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Ireland

1 How do you define “statutory interest” in your Member State?  Does your national law provide for statutory interest?

Legislation provides for the application of a rate of interest in a variety of circumstances e.g. late payments in commercial transactions, judgment debts, unpaid or overdue taxes,

2 If yes, what is the amount/rate and what is the legal basis for it?  If your national law provides for different rates of statutory interest, please indicate briefly the circumstances and conditions under which these rates apply.

The statutory interest rates set out in the table below are of relevance to claims in civil and commercial matters:

Amount/rate of the statutory interest

Criteria for the application of the statutory interest

(if necessary, for example delay, consumer contract, etc.)

Legal basis

8%

Interest  applicable to a judgment debt from the date of entry of the judgment

S. 26 Debtors (Ireland) Act 1840

and

S. 20 Courts Act 1981

and

S.I. 12/1989 - Courts Act 1981 (Interest on Judgments Debts) Order, 1989

8 %

Where a court orders the payment by any person of a sum of money, the court may, in certain circumstances, also order the payment of interest on the whole or any part of a sum of money due for the whole or any part of the period between when the cause of action accrued and the date of judgment

S. 22(1) Courts Act 1981

and

S. 50 Courts and Courts Officers Act 1995

and

S.I 12/1989 - Courts Act 1981 (Interest on Judgments Debts) Order, 1989

8 %

Interest is applicable to costs awarded by the court from the date on which the amount of those costs is ascertained (whether by agreement by the parties or by measurement of those costs by a court official).

S. 30 Courts and Courts Officers Act 2002 as amended by S. 41 Civil Liability and Courts Act 2004

and

S.I 544/2004 (commencement order)

The European Central Bank main refinancing rate (as at 1 January and 1 July each year) plus 8 percentage points

Entitlement by creditor to claim statutory late payment interest if payment is late in respect of commercial contracts made after 16 March 2013

Statutory Instrument (S.I.) No. 580/2012 – European Communities (Late Payments in Commercial Transactions) Regulations 2012

The European Central Bank main refinancing rate (as at 1 January and 1 July each year) plus 7 percentage points

Entitlement by creditor to claim late payment interest if payment is late in respect of commercial contracts made between 7 August 2002 and 15 March 2013 and where late payment interest claimed is greater than €5

S.I. No. 388/2002 – European Communities (Late Payment in Commercial Transactions) Regulations 2002

 

3 If necessary, please give further information on how to calculate statutory interest (for example information on how to calculate the basic rate of statutory interest; whether 'interest on interest', i.e. capitalisation of interests, is applicable in your Member State, etc.).

N/A. See table above.

4 Is it possible to get free online access to the legal basis mentioned above? If so, please provide the relevant links.

Legislation is available on-line at the following address: Link opens in new windowhttp://www.irishstatutebook.ie/eli/1996/act/33/enacted/en/html?q=Divorce

Last update: 11/10/2016

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Greece

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Greek law does provide for statutory interest. Statutory interest is the rate of interest, i.e. the percentage of the capital for a stated period of time, prescribed directly by the law. The most common form of statutory interest is interest on arrears, i.e. the interest that the debtor owes from the moment he or she is in default. Articles 301, 346 529, 720 etc. of the Civil Code also provide for other cases of statutory interest.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

The rate of statutory interest due for late payment is usually set at two percentage points above the maximum contractual interest rate, which was previously determined by decision of the Governor of the Bank of Greece, and was harmonised in 2001 with the corresponding interest rate of the European Central Bank (Act 47/2000 of the Monetary Policy Council, Article 3(2) of Law 2842/2000). By way of indication, the non-bank penalty rate ranged from 12 % (which applied consistently from 1946 to 1979) to 44 % (in 1992, when it gradually began to fall). Currently, it amounts to 7.30 %.

3 If necessary, is there further information available on how to calculate statutory interest?

There is a table of non-bank interest rates (since 1946) on the website of the Bank of Greece (Link opens in new windowhttp://www.bankofgreece.gr/Pages/el/Statistics/rates_markets/monetary/exotrapezika.aspx), although that website does not give an automatic method for calculating the statutory interest rate, as do other sites such as NOMOS or ISOKRATIS (dsanet).

4 Is there free online access available to the legal basis mentioned above?

To the Bank of Greece yes, but not to the others, as they are subscription-based services.

Last update: 07/09/2016

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Моля, имайте предвид, че оригиналната езикова версия на тази страница испански е била наскоро променена. Езиковата версия, която търсите, в момента се подготвя от нашите преводачи.

Statutory interest - Spain

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Statutory interest in provided for in Spain as a subsidiary remedy to set compensation for damages in the absence of an agreement between the parties, if the debtor is in default. It is provided for in Article 1108 of the Civil Code (Código Civil), which requires the unpaid debt to be in cash or to have been converted into cash.

There is no explicit definition of statutory interest.

There are, however, different types of statutory interest. The most common type is that mentioned above, referred to in the Civil Code. However, in other matters, the law establishes specific interest rates, which in many cases result from the application of a certain percentage to the statutory interest. In cases where these interest rates are applicable, they may also be considered "statutory interest" in the sense that they are set by law. These include:

- with respect to mortgages, Law 1/2013 of 14 May 2013 amends Article 114 of the Mortgage Law (Ley Hipotecaria) and sets the limit of interest rate for late payment in the case of loans for the purchase of the principal residence when the mortgage is on the dwelling itself, at three times the statutory interest, that is, currently 11.5 %;

- Article 20.4 of Law 16/2011 on Credit Agreements for Consumers (Contratos de Crédito al Consumo) sets an upper limit of 2.5 times the statutory interest for such operations;

- Article 7 of Law 3/2004 on combating late payment in commercial transactions (lucha contra la morosidad en las operaciones mercantiles) adds a differential of 8 points (7 points until 2013) to the interest rate applied by the European Central Bank to its most recent main refinancing operation carried out before the first day of the current calendar quarter (currently 0.250 %);

- with respect to insurance contracts, Article 20.4 of Law 50/1980 of 8 October 1980 on Insurance Contracts (Ley 50/1980, de 8 de octubre, de Contrato de Seguro) penalises unjustified delays by insurance companies in the payment of compensation to those affected by claims covered by insurance contracts signed by them, with payment of an annual interest rate equal to the statutory interest in force at the time when payment becomes due, increased by 50 %, although the judge cannot impose annual interest of less than 20 % on the insurer once two years have elapsed after the claim arises without the compensation being paid.

- The post-judgement interest (interés procesal) referred to by Article 576 of Law 1/2000 of 7 January 2000 on Civil Procedure (Ley de Enjuiciamiento Civil), which states that once a judgement or decision has been handed down at first instance ordering a cash payment, annual interest becomes due to the creditor at the statutory interest rate increased by two points, or the interest rate agreed on by the parties, or the rate provided for by special legal provision .

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

The interest rate is provided for in the budget laws for each year.

For 2016, the rate is provided for in Additional Provision No 34 of Law 48/2015 of 29 October on the General State Budget (Presupuestos Generales del Estado) for 2016:

- 3.00 percent until 31 December 2016.

The evolution of interest rates can be seen at the following address published by the Bank of Spain:

Link opens in new windowhttp://www.bde.es/clientebanca/es/areas/Tipos_de_Interes/Tipos_de_interes/Otros_tipos_de_i/otros-tipos/Tabla_tipos_de_interes_legal.html

As stated in the answer to the previous question, in addition to the statutory interest provided for in Article 1108 of the Civil Code for setting the compensation for unpaid pecuniary claims, various types of statutory interest apply. These include:

- with respect to mortgages, Law 1/2013 of 14 May 2013 amends Article 114 of the Mortgage Law and sets the limit of interest rate for late payment in the case of loans for the purchase of the principal residence when the mortgage is on the dwelling itself at three times the statutory interest, that is, currently 11.5 %;

- Article 20.4 of Law 16/2011 on Credit Agreements for Consumers (Contratos de Crédito al Consumo) sets an upper limit of 2.5 times the statutory interest for such operations;

- Article 7 of Law 3/2004 on combating late payment in commercial transactions (lucha contra la morosidad en las operaciones mercantiles) adds a differential of 8 points (7 points until 2013) to the interest rate applied by the European Central Bank to its most recent main refinancing operation carried out before the first day of the current calendar quarter (currently 0.250 %);

- with respect to insurance contracts, Article 20.4 of Law 50/1980 of 8 October 1980 on Insurance Contracts (Ley 50/1980, de 8 de octubre, de Contrato de Seguro) penalises unjustified delays by insurance companies in the payment of compensation to those affected by claims covered by insurance contracts signed by them, with payment of an annual interest rate equal to the statutory interest in force at the time when payment becomes due, increased by 50 %, although the judge cannot impose annual interest of less than 20 % on the insurer once two years have elapsed after the claim arises without the compensation being paid;

- The post-judgement interest (interés procesal) referred to by Article 576 of Law 1/2000 of 7 January 2000 on Civil Procedure (Ley de Enjuiciamiento Civil), which states that once a judgement or decision has been handed down at first instance ordering a cash payment, annual interest becomes due to the creditor at the statutory interest rate increased by two points, or the interest rate agreed on by the parties, or the rate provided for by special legal provision.

3 If necessary, is there further information available on how to calculate statutory interest?

The evolution of interest rates can be seen on the website indicated in the previous answer.

Link opens in new windowhttp://www.bde.es/clientebanca/es/areas/Tipos_de_Interes/Tipos_de_interes/Otros_tipos_de_i/otros-tipos/Tabla_tipos_de_interes_legal.html

4 Is there free online access available to the legal basis mentioned above?

Yes, at the following website:

Link opens in new windowhttp://www.bde.es/clientebanca/es/areas/Tipos_de_Interes/

Last update: 04/04/2017

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Croatia

1 How do you define “statutory interest” in your Member State?  Does your national law provide for statutory interest?

Yes. Statutory interest (zakonska kamata) is the interest rate that the debtor of a monetary obligation has to pay on an outstanding claim for a sum of money. Therefore, the debtor who fails to pay a monetary obligation also owes statutory interest, in addition to the principal amount.

2 If yes, what is the amount/rate and what is the legal basis for it?  If your national law provides for different rates of statutory interest, please indicate briefly the circumstances and conditions under which these rates apply.

The general law on statutory interest is the Civil Obligations Act (Zakon o obveznim odnosima) (Narodne Novine (NN; Official Gazette of the Republic of Croatia), No 35/05, 41/08, 125/11 and 78/15) - Articles 29-31. This Act applies unless otherwise specified for specific persons and specific relationships by means of special legislation. Pursuant to this Act, the default interest rate on debts arising from commercial contracts and contracts between a trader and a person governed by public law shall be determined on a semi-annual basis by increasing the average interest rate on loans authorised for a period of more than one year for non-financial corporations and calculated for the reference period prior to the current six-month period by five percentage points, and three percentage points in other relations.

The average interest rate for the reference period is determined by the Croatian National Bank (Hrvatska narodna banka), which must publish it on 1 January and 1 July in Narodne Novine, the Official Gazette of the Republic of Croatia.

The average interest rate used for calculating statutory interest rates for the current six-month period (from 1 January 2017 to 30 June 2017) is 4.68 %. Therefore, for the period from 1 January 2017 to 30 June 2017, the statutory interest rate on debts arising from commercial contracts and contracts between a trader and a person governed by public law is 9.68 %, and for other relations (e.g. relations arising from credit agreements and other civil law contracts, extracontractual relations - compensation, unjust enrichment) is 7.68 %.

The special regulation prescribing the statutory interest rate for certain debts is the Financial Business and Pre-Bankruptcy Settlement Act (Zakon o financijskom poslovanju i predstečajnoj nagodbi) (Narodne Novine (NN; Official Gazette of the Republic of Croatia), Nos 108/12, 144/12, 81/13, 112/13, 71/15 and 78/15). This Act is applied to payment delays in commercial transactions between entrepreneurs and entrepreneurs and persons governed by public law in which the person governed by public law is the debtor, which result in the supply of goods or providing of services for financial compensation. According to this Act, the statutory interest for delayed payments is the interest rate equal to the benchmark rate increased by 8 percentage points. The benchmark rate is equal to the average interest rate on loans authorised for a period of more than one year for non-financial corporations and calculated for the reference period prior to the current six-month period and decreased by three percentage points.

The average interest rate for the reference period is determined by the Croatian National Bank (Hrvatska narodna banka), which must publish it on 1 January and 1 July in Narodne Novine, the Official Gazette of the Republic of Croatia.

The benchmark rate used to calculate the statutory interest rates for the current six-month period (from 1 January 2017 to 30 June 2017) is 1.68 %. Therefore, for the period from 1 January 2017 to 30 June 2017, the statutory interest rate for payment delays in commercial transactions between entrepreneurs and entrepreneurs and persons governed by public law in which the person governed by public law is the debtor is 9.68 %.

3 If necessary, please give further information on how to calculate statutory interest (for example information on how to calculate the basic rate of statutory interest; whether 'interest on interest', i.e. capitalisation of interests, is applicable in your Member State, etc.).

The average interest rate for the reference period is determined by the Croatian National Bank (Hrvatska narodna banka), which must publish it on 1 January and 1 July in Narodne novine, the Official Gazette of the Republic of Croatia.

The Official Gazette of the Republic of Croatia, Narodne novine, can be accessed by clicking on the following link: Link opens in new windowhttps://narodne-novine.nn.hr/

4 Is it possible to get free online access to the legal basis mentioned above? If so, please provide the relevant links.

The Official Gazette of the Republic of Croatia, Narodne novine, can be accessed for free by clicking on the following link: Link opens in new windowhttps://narodne-novine.nn.hr/

Last update: 25/03/2019

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Italy

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Italian law on obligations makes a distinction between ordinary, default and compensatory interest. Ordinary interest has a remunerative function, in exchange for the benefit deriving for the individual (required to pay the interest) from the money made available by others. Default interest is compensatory in nature and is incurred for late payment, as established by serving an official notice for payment on the debtor. Compensatory interest must be paid for the late payment by the creditor of the amounts owing to the debtor, that does not pay immediately. Such interest constitutes equitable relief and accrues even though the claim is not of a fixed amount and due. Statutory interest, however, is laid down by the law for pecuniary obligations; from the date of the day after the sum falls due, the debtor is required to pay the creditor statutory interest even if no interest was previously owed and even if the creditor has not established that they have suffered any damages (Article 1224(I) of the Civil Code (Codice Civile)). Specifically, according to Article 1224 of the Civil Code (damages in pecuniary obligations) ‘for obligations concerning a sum of money, statutory interest is due from the date of the day after payment is due by, even if no interest was previously owed and even if the creditor has not established that they have suffered any damages’. Where interest was owed before the date of late payment which was higher than statutory interest, default interest of the same amount shall be due‘. Any creditors that establish that they have suffered greater damage will receive further compensation (damage caused by monetary devaluation). This will not be paid if an amount of default interest has been agreed.

Article 1282 of the Civil Code states that interest shall automatically be payable on claims on known amounts of monies due, unless otherwise provided for by law or the provision concerned.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

The amount of statutory interest is decided by the Italian Treasury (now the Ministry of the Economy and Finance) on an annual basis by way of a decree issued by 15 December each year. If the parties have agreed on an interest rate, the rate is the one decided by them. However, the rate must have been agreed on in writing and must not be higher than the maximum rate allowed under the anti-usury law (Law No 108 of 7 March 1996), otherwise the interest will be considered usurious and therefore null. In such cases, no interest will be owed (Article 1815 of the Civil Code). If the parties have reached an agreement to apply a contractual interest rate but have not established the level of such interest, the statutory rate is applied. In the Italian legal system the situation regarding default interest differs in part from that of statutory interest. Default interest is intended as a penalty (for the debtor) and compensation (for the creditor). It is linked to non-fulfilment of a financial obligation following the late or non-payment for the service concerned within the period envisaged by law or on the basis of the agreements reached by the parties. For the creditor to be able to claim default interest the debtor must be in arrears. ‘Arrears’ refers to a delay by the debtor in fulfilling their obligations. For arrears to apply, the due date must have passed and the debtor must have been given notice to pay: a formal document with which the creditor asks the debtor to make the payment due. Under the Civil Code, default interest is due at the statutory rate or at a rate determined by law. However, if interest higher than the statutory rate was due before the debtor was given notice to pay, then the default interest will be of the same amount (Article 1224 of the Civil Code).

Under Article 1284 of the Civil Code the rate of statutory interest is determined on an annual basis by the Minister for the Economic Affairs and Finance. Through a decree published in the Official Gazette of the Italian Republic (Gazzetta Ufficiale della Repubblica Italiana), the Minister changes the rate on the basis of the average annual yield of government bonds with a maximum term to maturity of 12 months, taking into account the inflation rate recorded over the year. This amount is set no later than 15 December of the year preceding the one to which the rate applies. If, by 15 December, the new rate has not been set, the existing one will remain unchanged for the following year.

Since 1 January 2019 the statutory interest rate has been 0.8 %.

TABLE OF STATUTORY INTEREST RATES

From

To

Rate

Law

01/01/1999

31/12/2000

2.50 %

Ministerial Decree (Treasury) of 10/12/1998

01/01/2001

31/12/2001

3.50 %

Ministerial Decree (Treasury) of 11/12/2000

01/01/2002

31/12/2003

3.00 %

Ministerial Decree (Economy) of 11/12/2001

01/01/2004

31/12/2007

2.50%

Ministerial Decree (Economy) of 01/12/2003

01/01/2008

31/12/2009

3.00 %

Ministerial Decree (Economy) of 12/12/2007

01/01/2010

31/12/2010

1.00 %

Ministerial Decree (Economy) of 04/12/2009

01/01/2011

31/12/2011

1.50 %

Ministerial Decree (Economy) of 07/12/2010

01/01/2012

31/12/2013

2.50%

Ministerial Decree (Economy) of 12/12/2011

01/01/2014

31/12/2014

1.00 %

Ministerial Decree (Economy) of 12/12/2013

01/01/2015

31/12/2015

0.50 %

Ministerial Decree (Economy) of 11/12/2014

01/01/2016

31/12/2016

0.20 %

Ministerial Decree (Economy) of 11/12/2015

01/01/2017

31/12/2017

0.10 %

Ministerial Decree (Economy) of 07/12/2016

01/01/2018

31/12/2018

0.30 %

Ministerial Decree (Economy) of 13/12/2017

01/01/2019

---

0.80 %

Ministerial Decree (Economy) of 12/12/2018

Any interest charged at a higher rate must be stipulated in writing; otherwise the legally prescribed rate is applicable.

For delays in commercial transactions, an ad hoc EU rule applies; in national law, Legislative Decree No 231 of 9 October 2002, as amended by Legislative Decree No 192 of 9 November 2012 apply, for the full transposition of Directive 2011/7/EU, in accordance with Article 10(1) of Law No 180 of 11 November 2011. If the parties have not decided on a rate, from the time that the document instituting proceedings is submitted the statutory interest rate will be equal to the rate envisaged by the special law concerning late payment in commercial transactions (see below). This rule also applies to the act initiating arbitration proceedings.

Special legislation relating to late payment in commercial transactions. To implement Directive 2000/35/EC on combating late payment in commercial transactions, Italy issued Legislative Decree No 231/2002 as amended. This expressly envisages, as interest for late payment in commercial transactions, a higher interest rate than the statutory rate. Under Legislative Decree No 231/2002, commercial transactions means ‘contracts of any description between undertakings or between undertakings and public authorities which involve, solely or predominantly, the delivery of goods or the performance of services against the payment of a fee’. The Decree provides that, in the context of a commercial transaction, ‘anyone who is unjustly subjected to a delay in the payment of the fee is entitled to automatic payment of the interest on late payment which takes effect, without need of a formal notice to pay, from the day following the expiry of the deadline for payment’, unless the debtor is able to show that the non-payment was the result of causes not imputable to him or her. Under this law, interest on late payments in commercial transactions is based on the rate set each year by the Ministry of Economic Affairs and Finance and summarised in the table below, specifying: a) for the first half of the year to which the delay refers, the rate used is the one in force on 1 January of that year; b) for the second half of the year to which the delay refers, the rate used is the one in force on 1 July of that year.

Table showing the changes in the interest rate for late payments over time, from 2002:

TABLE of INTEREST RATES FOR LATE PAYMENTS under Legislative Decree 231/2002

From

To

Rate
ECB Rate

Rate of
increase

Total

01/07/2002

31/12/2002

3.35 %

7.00 %

10.35 %

01/01/2003

30/06/2003

2.85 %

7.00 %

9.85 %

01/07/2003

31/12/2003

2.10 %

7.00 %

9.10 %

01/01/2004

30/06/2004

2.02 %

7.00 %

9.02 %

01/07/2004

31/12/2004

2.01 %

7.00 %

9.01 %

01/01/2005

30/06/2005

2.09 %

7.00 %

9.09 %

01/07/2005

31/12/2005

2.05 %

7.00 %

9.05 %

01/01/2006

30/06/2006

2.25 %

7.00 %

9.25 %

01/07/2006

31/12/2006

2.83 %

7.00 %

9.83 %

01/01/2007

30/06/2007

3.58 %

7.00 %

10.58 %

01/07/2007

31/12/2007

4.07 %

7.00 %

11.07 %

01/01/2008

30/06/2008

4.20 %

7.00 %

11.20 %

01/07/2008

31/12/2008

4.10 %

7.00 %

11.10 %

01/01/2009

30/06/2009

2.50 %

7.00 %

9.50 %

01/07/2009

31/12/2009

1.00 %

7.00 %

8.00 %

01/01/2010

30/06/2010

1.00 %

7.00 %

8.00 %

01/07/2010

31/12/2010

1.00 %

7.00 %

8.00 %

01/01/2011

30/06/2011

1.00 %

7.00 %

8.00 %

01/07/2011

31/12/2011

1.25 %

7.00 %

8.25 %

01/01/2012

30/06/2012

1.00 %

7.00 %

8.00 %

01/07/2012

31/12/2012

1.00 %

7.00 %

8.00 %

01/01/2013

30/06/2013

0.75 %

8.00 %

8.75 %

01/07/2013

31/12/2013

0.50 %

8.00 %

8.50 %

01/01/2014

30/06/2014

0.25 %

8.00 %

8.25 %

01/07/2014

31/12/2014

0.15 %

8.00 %

8.15 %

01/01/2015

30/06/2015

0.05 %

8.00 %

8.05 %

01/07/2015

31/12/2015

0.05 %

8.00 %

8.05 %

01/01/2016

30/06/2016

0.05 %

8.00 %

8.05 %

01/07/2016

31/12/2016

0.00 %

8.00 %

8.00 %

01/01/2017

30/06/2017

0.00 %

8.00 %

8.00 %

01/07/2017

31/12/2017

0.00 %

8.00 %

8.00 %

01/01/2018

30/06/2018

0.00 %

8.00 %

8.00 %

01/07/2018

31/12/2018

0.00 %

8.00 %

8.00 %

3 If necessary, is there further information available on how to calculate statutory interest?

Website of the Ministry of the Economy and Finance: Link opens in new windowhttp://www.mef.gov.it/

4 Is there free online access available to the legal basis mentioned above?

There are numerous websites providing free software to calculate statutory and default interest.

Last update: 08/07/2019

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Cyprus

1 How do you define “statutory interest” in your Member State?  Does your national law provide for statutory interest?

The national law of Cyprus does not provide for any ‘statutory interest rate’. However, where an action is brought before a court, the judge has the power to order that statutory interest be paid at a predefined rate, from the date of registration of the action to the date of issue of the judgment if the relevant legislation has not provided for interest payment or where, in respect of actions brought for breach of contract or of an agreement, the said contract or agreement does not include an explicit provision specifying the interest rate.

Currently, the rate has been set at 3.5 % by special order of the Minister for Finance, who has the power to adjust it.

2 If yes, what is the amount/rate and what is the legal basis for it?  If your national law provides for different rates of statutory interest, please indicate briefly the circumstances and conditions under which these rates apply.

Please see the answer to question 1. The interest rate currently in force is 3.5 %.

3 If necessary, please give further information on how to calculate statutory interest (for example information on how to calculate the basic rate of statutory interest; whether 'interest on interest', i.e. capitalisation of interests, is applicable in your Member State, etc.).

Not applicable. Please see the answer to question 1.

4 Is it possible to get free online access to the legal basis mentioned above? If so, please provide the relevant links.

Not applicable. Please see the answer to question 1.

Last update: 13/05/2019

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Моля, имайте предвид, че оригиналната езикова версия на тази страница френски е била наскоро променена. Езиковата версия, която търсите, в момента се подготвя от нашите преводачи.

Statutory interest - Luxembourg

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

The statutory interest rate is the rate of interest fixed annually by the law and which is applied in the event of late payment of a sum due, if no other rate has been fixed previously by the parties.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Since the law of 18 April 2004 transposing Directive 2000/35/EC of 29 June 2000, the rate of late payment interest for commercial transactions (namely transactions between companies or between companies and public authorities which lead to the provision of goods or services for remuneration) is fixed separately by reference to the marginal rate resulting from the variable‑rate tender procedure for the main refinancing rate applied by the European Central Bank to its most recent main refinancing operation carried out before the first calendar day of each six-month period. In cases of late payment, this rate will be increased by the margin (unless otherwise stipulated in the contract, under Article 5 of the law of 18 April 2004 concerning payment periods and late payment interest rates).

3 If necessary, is there further information available on how to calculate statutory interest?

/

4 Is there free online access available to the legal basis mentioned above?

Link opens in new windowhttp://www.legilux.public.lu/

Link opens in new windowhttp://www.mj.public.lu/

Last update: 18/12/2018

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Hungary

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Yes. The rate of statutory interest is set in Section 6:47 of Act V of 2013 on the Civil Code, which links it to the central bank's interest rate rules. The rate of statutory interest arising from debt expressed in HUF is based on the central bank's base interest rate, which is decided by the Monetary Council of the Hungarian National Bank. In the case of debt expressed in foreign currency, the rate of statutory interest is the base interest rate decided by the issuing central bank for the currency in question, or where there is no such base rate the money market interest rate.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

The legal basis for statutory interest is the Civil Code, which regards the interest as the price of another person's money that a party has to pay for any debt unless otherwise agreed. The statutory interest applicable on debt is charged every calendar half-year. The interest rate in effect on the first day of the calendar half-year in question applies to the entire period of the given calendar half-year, regardless of any changes in the central bank's base interest rate during that half year.

3 If necessary, is there further information available on how to calculate statutory interest?

No.

4 Is there free online access available to the legal basis mentioned above?

Yes, the Civil Code can be found in the Link opens in new windowNational Legislative Repository [Nemzeti Jogszabálytár]. Information on the rate of the central bank's base interest rate can be found on the Link opens in new windowwebsite of the Hungarian National Bank.

Last update: 16/10/2017

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Malta

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Under Maltese law, one does not find the term 'statutory interest' but the term used instead of statutory interest is that of 'legal interest for late payment'. This phrase is found in the Maltese Commercial Code which term is defined as 'simple interest for late payment at a rate which is equal to the sum of the reference rate and at least eight percent (8%)'.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

The Maltese law only provides for one interest rate and this is of eight percent (8%). The legal basis to this rate is the Commercial Code, Chapter 13 of the Laws of Malta, specifically under Title II, Sub-Title IA of the said code.

3 If necessary, is there further information available on how to calculate statutory interest?

The creditor shall be entitled to interest for late payment from the day following the date or the end of term for payment fixed in the contract. However, when the date or term for payment is not fixed in the contract, the creditor shall be entitled to late payment upon the expiry of any of the following time limits:

  • thirty calender days follwoing the date of receipt by the debtor of the invoice;
  • thirty calender days after the date of receipt of the goods or services, when the date of the receipt of the invoice is uncertain;
  • thirty calender days after the date of the receipt of the goods or services, when the debtor receives the invoice earlier than the goods or services;
  • thirty calender days after the date when according to law as agreed or in the contract the product has to be ascertained or verified, and the debtor receives the invoice earlier or on the date on which such acceptance or verification takes place.

The applicable reference rate for the first semester of the year concerned shall be the rate in force on 1 January of that year and the second semester of the year concerned shall be the rate in force on 1 July of that year.

4 Is there free online access available to the legal basis mentioned above?

The Maltese Commercial Code, Link opens in new windowChapter 13 of the Laws of Malta is freely available online.

Last update: 22/03/2017

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Netherlands

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

The Netherlands does have statutory interest. This is the interest which a creditor can legally demand in the event of a late payment.

A distinction is drawn between statutory interest for non-commercial transactions (Article 6:119 of the Civil Code) and statutory interest for commercial transactions (Article 6:119a of the Civil Code).

Statutory interest for non-commercial transactions applies to all agreements with private individuals or consumers.

Statutory interest for commercial transactions applies to all agreements with businesses and government organisations.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Statutory interest for non-commercial transactions is 2 %. Statutory interest for commercial transactions is 8 %.

Statutory interest can fluctuate.

3 If necessary, is there further information available on how to calculate statutory interest?

4 Is there free online access available to the legal basis mentioned above?

Last update: 12/09/2018

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Austria

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Statutory interest rates are regulated by Section 1000 of the Austrian Civil Code (Allgemeines bürgerliches Gesetzbuch, ABGB). Default interest rates are regulated by Section 1333 ABGB and Section 456 of the Austrian Commercial Code (Unternehmensgesetzbuch, UGB) for business-related legal transactions between companies, and between companies and legal entities governed by public law.

Section 1000 ABGB applies to interest ‘which is required by law or for which the rate has not been determined.’ In addition, Section 1000(2) ABGB stipulates the instances in which interest can be charged on interest (compound interest).

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

In accordance with Section 1000(1) ABGB, statutory interest is four percent per year. The same applies for statutory default interest in accordance with Section 1333(1) ABGB in conjunction with Section 1000(1) ABGB. This interest rate also applies to unilateral business transactions.

For business-related legal transactions between companies, and between companies and legal entities governed by public law, a default interest rate of 9.2 percentage points over the basic interest rate is applied for late payment of outstanding debts in accordance with Section 456 UGB. The basic interest rate for the relevant half-year period is the one which was valid on the first calendar day of that period. The base interest rate can be found on the website of the Austrian National Bank on http://www.oenb.at under ‘Services’ / ‘Interest rates and exchange rates’.

3 If necessary, is there further information available on how to calculate statutory interest?

According to Section 1000(2) ABGB, a creditor can charge interest on a monetary claim if the parties have explicitly agreed on this. Even without such an agreement between the parties, compound interest of four percent per annum can be charged from the day when litigation is pending (when the claim is served on the defendant), if a claim is made for interest due. Austrian law does not prohibit compound interest.

4 Is there free online access available to the legal basis mentioned above?

The aforementioned provisions of the Austrian Civil Code and the Austrian Commercial Code can be accessed free of charge (in German) on the website of the Austrian Federal Chancellery (Bundeskanzleramt) (Link opens in new windowhttp://www.ris.bka.gv.at) under ‘Bundesrecht’/‘Bundesrecht konsolidiert’.

Last update: 01/03/2018

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Моля, имайте предвид, че оригиналната езикова версия на тази страница полски е била наскоро променена. Езиковата версия, която търсите, в момента се подготвя от нашите преводачи.

Statutory interest - Poland

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Pursuant to Article 359(1) of the Act of 23 April 1964 – The Civil Code [Journal of Laws (Dziennik Ustaw) of 2014, item 121, as amended, hereinafter: the ‘CC’], interest on a sum of money is due only if it follows from a legal transaction or statutory law, a court decision or a decision of another competent authority. If the level of interest is not otherwise specified, statutory interest is due at a rate corresponding to the sum of the reference rate of the National Bank of Poland plus 3.5 percentage points.

On the other hand, as regards interest on arrears, under Article 481(2) of the CC, if the rate of interest on arrears has not been specified, statutory interest on arrears is due at a rate corresponding to the sum of the reference rate of the National Bank of Poland plus 5.5 percentage points. However, if a receivable bears interest at a higher rate, the creditor may demand interest on arrears at that higher rate.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Under Article 359(2) of the CC, statutory interest is set at a rate corresponding to the sum of the reference rate of the National Bank of Poland plus 3.5 percentage points. The Minister of Justice announces the level of statutory interest by way of a notice in the Polish Official Gazette (Monitor Polski). Currently, pursuant to the Notice of the Minister of Justice of 7 January 2016, as of 1 January 2016 the level of statutory interest is 5 % per annum, and the level of statutory interest on arrears is 7 % per annum.

Interest in commercial transactions, on the other hand, is governed by the Act of 8 March 2013 on payment terms in commercial transactions (Journal of Laws of 2013, item 403, as amended), and the level of interest is always set in a notice issued by the Minister of Development. Currently, pursuant to the Notice of 7 January 2016, as of 1 January 2016 until 30 June 2016, the level of statutory interest for delay in commercial transactions is 9.50 % per annum.

3 If necessary, is there further information available on how to calculate statutory interest?

For details on the current levels of interest rates of the National Bank of Poland, including the reference rate, please visit the website of the National Bank of Poland (NBP) at: Link opens in new windowhttp://www.nbp.pl/home.aspx?f=/dzienne/stopy.htm

4 Is there free online access available to the legal basis mentioned above?

Notices issued by the Minister of Justice and the Minister of Development on the level of statutory interest (for commercial transactions) are available on the website of the Government Legislation Centre (Rządowe Centrum Legislacji RCL): Link opens in new windowhttp://www.monitorpolski.gov.pl/Wyszukiwanie/tabid/114/Title/odsetki/Default.aspx

Last update: 22/01/2018

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

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Statutory interest - Portugal

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Statutory interest

Yes, Portuguese legislation provides for statutory interest rates.

Interest may be stipulated by the parties or laid down by law. When it is stipulated by the parties, it is called contractual interest. When it is laid down by the law, it is called statutory interest.

Contractual and statutory interest can be civil or commercial.

Purpose of the interest

In general terms, there are two types of interest: remuneratory interest (e.g. interest payable on a loan) and penalty interest (e.g. interest for default in fulfilling an obligation).

Statutory interest due for default

When a debtor defaults on a financial obligation, the general rule is that the compensation due for the default corresponds to the statutory interest calculated as from the date the debtor defaulted. A financial obligation is an obligation to pay money to another party.

Time of default

The debtor is considered to be in default once he has been notified through judicial or extrajudicial channels to fulfil the obligation.

However, there are three cases in which the debtor is considered to be in default without necessarily having been notified:

  1. If the obligation had a fixed period;
  2. If the obligation arose from an unlawful act;
  3. If the debtor avoids the notification; in this case, the debtor is deemed to have been notified on the date the notification would normally have been served on him.

If the credit is illiquid, there is no default until it becomes liquid unless the illiquidity is the fault of the debtor. If the debtor is responsible for an unlawful act or a risk, he is considered to have defaulted from the date on which he is served formal notice, unless he had already defaulted under the terms of the first part of this paragraph.

Extinguishment or cessation of interest credit

From the time it arises, interest credit is not necessarily dependant on the principal credit. One can be transferred or cancelled without the other.

Allocation of partial payments

National legislation establishes the following rules in relation to payment allocation:

(i) When, in addition to capital, the debtor has to pay costs or interest or has to compensate the creditor as a result of default, a payment that is not sufficient to cover the full amount will be applied to costs, compensation, interest and capital, in that order;

(ii) Allocation to the capital can only be made last, unless the creditor agrees otherwise.

Interest on interest

Penalty interest can accrue on ordinary interest (compound interest) in certain cases.

For interest to accrue further interest, one of the following situations has to occur:

Either the debtor must be notified judicially to capitalise the accrued interest, or the debtor must pay the interest under penalty of capitalisation.

Only interest corresponding to a minimum period of one year can be capitalised. These restrictions on compound interest are not applicable if they breach the specific regulations or practices of the sector (e.g. as in the case of loans granted by financial institutions subject to special regulations).

National case law has determined that penalty interest cannot accrue on penalty interest. Accordingly, statutory interest owed as a result of default in the fulfilment of a financial obligation cannot in principle accrue interest. This is without prejudice to any variation of this interpretation in case law and the possibility provided for by the law of application of a compulsory financial penalty when the payment of a monetary amount is ordered via a court judgment.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Statutory interest rates vary according to whether they relate to civil or commercial interest.

Civil statutory interest

Civil statutory interest is set by a joint ministerial implementing order (Portaria) of the Ministers of Justice and Finance, in accordance with Article 449(1) of the Portuguese Civil Code (Código Civil). At December 2015 (the time of writing), civil interest rates are set by Ministerial Implementing Order No 291/03 of 8.4.2003.

Commercial statutory interest

Commercial statutory interest is normally due for credit owed by commercial companies, single undertakings or legal persons and, in particular, for the types of credit referred to in Decree-law No 62/2013 of 10.5.2013, referred to below.

Commercial statutory interest is set by a joint ministerial implementing order of the Ministers of Justice and Finance in accordance with Article 102(3) to (5) of the Portuguese Commercial Code (Código Comercial). At time of writing in December 2015 the setting of commercial interest was regulated by Ministerial Implementing Order No 277/13 of 26.8.2013, under which commercial interest rates are set on a biannual basis.

The amount of each of the commercial interest rates referred to in Ministerial Implementing Order No 277/13 of 26.8.2013 is set by notification of the Directorate-General of the Treasury and Finance (Direcção Geral do Tesouro e Finanças), published in the Diary of the Republic, 2nd series, by 15 January and 15 July each year.

Ministerial Implementing Order No 277/13 of 26.8.2013 provides for two commercial interest penalty rates, which vary according to the transactions concerned:

  1. The first is the interest rate applicable to delays in payment relating to commercial transactions between companies or between companies and public entities, provided for by Decree-law No 62/2013 of 10.5.2013;
  2. The second is the supplementary rate of penalty interest applicable to other operations and relating to credit owed by commercial companies, single undertakings or legal persons, provided for by Article 102(3) of the Portuguese Commercial Code.

Statutory interest rates, whether civil or commercial, vary with time. For that reason, the calculation of interest should take into account the different rates applicable for each part of the default period.

For practical reasons, we have only mentioned here the statutory interest rates for recent years. The content of this factsheet is for information purposes only and is not intended to replace consultation of the applicable national legislation for each specific case.

A compulsory interest surcharge of 5 % is added to the statutory interest owed if payment of a monetary amount is ordered via a court judgment. In this case, interest at the rate of 5 % per annum will automatically be owed - without the need for any other judicial decision to that effect - counting from the effective date of the judgment. This compulsory financial penalty is added to the penalty interest, where applicable, or to the compensation owed, in accordance with Article 829 a (4) of the Portuguese Civil Code.

Statutory interest from 5 August 1980 to date is as follows:

From 05.08.1980 to 22.05.1983
[(1 021 days) - Decree Law No 200-C/80 of 24.06.1980 and Ministerial Implementing Order No 447/80 of 31.07.1980]

15 %

From 23.05.1983 to 28.04.1987
[(1 437 days) - Ministerial Implementing Order No 581/83 of 18.05.1983]

23 %

From 29.04.1987 to 29.09.1995
[(3 076 days) - Ministerial Implementing Order No 339/87 of 24.04.1987]

15 %

From 30.09.1995 to 16.04.1999
[(1 295 days) - Ministerial Implementing Order No 1171/95 of 25.09.1995]

10 %

From 17.04.1999 to 30.04.2003
[(1 475 days) - Ministerial Implementing Order No 263/99 of 12.04.1999]

7 %

From 01.05.2003
[(1 475 days) - Ministerial Implementing Order No 291/03 of 08.04.2003]

4 %

Commercial statutory interest rates from 28 September 1995 to date are as follows:

From 28.09.1995 to 16.04.1999
[Ministerial Implementing Order No 1167/95 of 23.9.1995]

15 %

From 17.04.1999 to 30.09.2004
[Ministerial Implementing Order No 262/99 of 12.4.1999]

12 %

From 01.10.2004 to 31.12.2004
[Directorate-General of the Treasury (Direcção-Geral do Tesouro or 'DGT') Notice No 10097/04 of 30.10.2004]

9.01 %

First half of 2005
[Ministerial Implementing Order No 597/2005 of 19.07 and DGT Notice 310/2005 of 14.01.2005]

9.09 %

Second half of 2005
[Ministerial Implementing Order No 597/2005 of 19.07 and DGT Notice 6923/2005 of 25.07.2005]

9.05 %

First half of 2006
[DGT Notice No 240/2006 of 11.01.2006]

9.25 %

Second half of 2006
[DGT Notice No 7706/2006 of 10.07.2006]

9.83 %

First half of 2007
[DGT Notice No 191/2007 of 05.01.2007]

10.58 %

Second half of 2007
[Directorate-General of the Treasury and Finance (Direcção-Geral do Tesouro e Finanças or 'DGTF') Notice No 13665/2007 of 30.07.2007]

11.07 %

First half of 2008
[DGTF Notice No 2152/2008 of 29.1.2008]

11.20 %

Second half of 2008
[DGTF Notice No 19995/2008 of 14.07.2005]

11.07 %

First half of 2009
[DGTF Notice No 1261/2009 of 14.01.2009]

9.50 %

Second half of 2009
[DGTF Notice No 12184/2009 of 1.7.2009]

8 %

First half of 2010
[DGTF Notice No 597/2010 of 4.1.2010]

8 %

Second half of 2010
[DGTF Notice No 13746/2010 of 12.7.2010]

8 %

First half of 2011
[DGTF Notice No 2284/2011 of 21.1.2011]

8 %

Second half of 2011
[DGTF Notice No 14190/2011 of 14.7.2011]

8.25 %

First half of 2012
[DGTF Notice No 692/2012 of 17.1.2012]

8 %

Second half of 2012
[DGTF Notice No 9944/2012 of 24.7.2012]

8 %

First half of 2013
[DGTF Notice No 584/2013 of 11.7.2013]

7.75 %

Second half of 2013
Operations subject to Decree-law (Decreto-lei) No 62/2013
[DGTF Notice No 11617/2013 of 17.9.2013]

8.50 %

Other operations
[DGTF Notice No 10478/2013 of 23.8.2013]

7.50 %

First half of 2014
Operations subject to Decree-law No 62/2013

8.25 %

Other operations
[DGTF Notice No 1019/2014 of 24.1.2014]

7.25 %

First half of 2014
Operations subject to Decree-law No 62/2013

8.15 %

Other operations
[DGTF Notice No 8266/2014 of 16.7.2014]

7.15 %

First half of 2015
Operations subject to Decree-law No 62/2013

8.05 %

Other operations
[DGTF Notice No 563/2015 of 19.1.2015]

7.05 %

Second half of 2015
Operations subject to Decree-law No 62/2013

8.05 %

Other operations
[DGTF Notice No 7758/2015 of 14.7.2015]

7.05 %

3 If necessary, is there further information available on how to calculate statutory interest?

Additional information on how to calculate the statutory interest rate can be found on the website of the Directorate-General for the Treasury and Finance of the Ministry of Justice.

Link opens in new windowhttp://www.dgtf.pt/avisos-e-circulares/taxas-de-juros-moratorios

4 Is there free online access available to the legal basis mentioned above?

Online access to the website referred to in the answer to question 3 is free.

Warning

The information contained in this factsheet is of a general nature and is not exhaustive. It is not binding on the contact point, the European Judicial Network in civil and commercial matters, the courts or any other persons. It is not intended to replace consultation of the applicable legislation in force.

Last update: 20/02/2017

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Romania

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Government Order No 13/2011 on remunerative and penalty statutory interest on payment obligations and regulating certain financial and fiscal measures in the banking sector lays down the legal arrangements for:

- remunerative statutory interest (representing the interest owed by the debtor on the amount he/she is obliged to pay by a given deadline, calculated for the period preceding the due date for the amount owed) and

- penalty statutory interest (representing the interest owed by the debtor on the amount he/she is obliged to pay for failure to meet that obligation by the due date).

Under Article 2 of Government Order No 13/2011, where a payment obligation is subject, in accordance with the legal provisions or the contractual terms, to remunerative and/or penalty interest, as the case may be, and in the absence of an express provision agreed by the parties on the rate of such interest, the rate to be paid is the statutory rate corresponding to each of them.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

The provisions underpinning the legal arrangements for remunerative/penalty statutory/conventional interest are Articles 3 to 5 of Government Order No 13/2011 on remunerative and penalty statutory interest on payment obligations and regulating certain financial and fiscal measures in the banking sector:

Article 3 - (1) The rate of the remunerative statutory interest shall be the reference interest rate of the National Bank of Romania (Banca Națională a României), which is the monetary policy interest rate established by decision of the Board of Directors of the National Bank of Romania.

(2) The rate of the penalty statutory interest rate shall be the reference interest rate plus 4 percentage points.

(21) In transactions between professionals and between professionals and contracting authorities, the rate of the penalty statutory interest shall be the reference interest rate plus 8 percentage points.

(3) In legal relations not arising from the operation of a for-profit undertaking, within the meaning of Article 3(3) of Law No 287/2009 on the Civil Code, republished, the rate of the statutory interest shall be determined in accordance with paragraphs (1) and (2), reduced by 20 %.

(4) The reference interest rate of the National Bank of Romania shall be published in Official Gazette of Romania, Part I, by the National Bank of Romania, whenever the monetary policy interest rate changes.

Article 4 – In legal relations with cross-border implications, where Romanian law is applicable and payment is to be made in foreign currency, the statutory interest shall be 6 % per year.

Article 5 – (1) In legal relations not arising from the operation of a for-profit undertaking, within the meaning of Article 3(3) of Law No 287/2009 on the Civil Code, republished, the interest rate may not exceed the statutory interest by more than 50 % per year.

(2) Any clause breaching the provisions of paragraph (1) shall be null and void. In this case, the creditor shall forfeit the right to claim statutory interest.

(3) The validity of the conventional interest rate shall be determined by reference to the statutory interest in force on the date of stipulation."

3 If necessary, is there further information available on how to calculate statutory interest?

Article 3(1) of Government Order No 13/2011 on the remunerative and penalty statutory interest on payment obligations and regulating certain financial and fiscal measures in the banking sector provides that the rate of the statutory interest is the reference interest rate of the National Bank of Romania, which is the monetary policy interest rate established by decision of the Board of Directors of the National Bank of Romania. It is published on the website of the National Bank of Romania at Link opens in new windowhttp://www.bnr.ro/Monetary-Policy--3318.aspx

For the method of calculating the rate of the statutory interest for different cases, see the answer above.

4 Is there free online access available to the legal basis mentioned above?

Yes, in Romanian for Government Order No 13/2011 on the remunerative and penalty statutory interest on payment obligations and regulating certain financial and fiscal measures in the banking sector. See the website of the National Bank of Romania at Link opens in new windowhttp://www.bnr.ro/apage.aspx?pid=404&actId=324573

Yes, in English for the reference interest rate of the National Bank of Romania (BNR). See the website of the National Bank of Romania at Link opens in new windowhttp://www.bnr.ro/Monetary-Policy--3318.aspx

Last update: 05/09/2016

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Slovenia

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

The concept of interest is defined in Article 374 of the Code of Obligations (Obligacijski zakonik; hereinafter: OZ) (Uradni list RS (Official Journal of the Republic of Slovenia); UL RS Nos Link opens in new window97/07 – official consolidated text, and Link opens in new window64/16 – Constitutional Court Decision), which provides that a debtor, in addition to the principal, owes interest when this is provided for by law or agreed between a creditor and a debtor.

If a debtor is late in performing a pecuniary obligation then the debtor, pursuant to Article 378(1) of the OZ, also owes interest in addition to the principal.

Contractual interest is regulated by Article 382 of the OZ, which provides that contracting parties may agree for a debtor to pay contractual interest in addition to the principal for the period starting from the time when the pecuniary obligation arose until it is due for payment.

In Slovenia, compound interest is prohibited, which means that due but not yet paid interest does not incur interest unless otherwise stipulated by law. Consequently, a contractual provision stipulating interest added to unpaid due interest is null and void. However, it can be agreed in a contract that the interest rate can become higher if a debtor does not pay due interest on time.

Nevertheless, Article 27a of the Consumer Protection Act (Zakon o varstvu potrošnikov) (UL RS Nos 98/04 – official consolidated text, 114/06 – ZUE, 126/07, 86/09, 78/11, 38/14 and 19/15) provides that, notwithstanding the general provisions on obligations, in the event of a delay in a payment by a consumer, contracting parties may not agree to apply higher interest rates than those set out in the OZ.

In accordance with the OZ, if the agreed default or contractual interest rate is more than 50% higher than the statutory default interest rate, such an agreement is regarded as a usurious contract unless a creditor can show that they did not take advantage of distress or a difficult pecuniary situation of a debtor, their insufficient experience, carelessness or addiction, or that the benefit which they obtained for themselves or for anyone else is not obviously disproportionate to what they gave or committed to give or do. This assumption does not apply to commercial contracts, i.e. to contracts concluded between economic undertakings (companies and other legal entities pursuing economic activity or sole proprietors).

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Article 378(2) of the OZ provides that the default interest rate is 8% per year unless otherwise provided by law. In accordance with Article 379 of the OZ, a creditor and a debtor may agree on a higher or lower default interest rate than the default interest rate stipulated by law (contractually agreed interest rate). As already emphasised, an agreement on a higher default interest rate cannot be agreed upon in a case of a delay in payment by a consumer who is a contracting party.

A special law regulating the interest rate is the Statutory Default Interest Rate Act (Zakon o predpisani obrestni meri zamudnih obresti) (UL RS No 11/07 – official consolidated text; hereinafter: ZPOMZO-1). Article 2 of this Act provides that the statutory default interest rate, having regard to Article 3(1)(d) of Directive 2000/35/EC of the European Parliament and of the Council of 29 June 2000 on combating late payment in commercial transactions (OJ L 200 of 8 August 2000, p. 35), is the leading interest rate plus 8 percentage points. The statutory interest rate applies for a six-month period, starting on 1 January or 1 July. The leading interest rate is the interest rate applied by the European Central Bank for the main refinancing operations which it performed before the first calendar day of the relevant six-month period. The minister responsible for finance publishes the statutory default interest rate and its changes in the Official Journal of the Republic of Slovenia. The statutory default interest rate, applicable from 1 January 2017 and valid for a six-month period, is 8%.

The rate of contractual interest is set out in Article 382 of the OZ. Specifically, in cases when contractual interest was agreed upon but not the actual interest rate and due date, the annual interest rate is 6% and that interest is due for payment at the same time as the principal. Contractual interest ceases to be incurred when the sum of due interest that has not yet been paid exceeds the principal.

3 If necessary, is there further information available on how to calculate statutory interest?

Information concerning the basic and default interest rates is also accessible on theLink opens in new windowwebsite of the Bank of Slovenia

A provisional calculation of interest can be obtained on theLink opens in new window website of the Supreme Court of the Republic of Slovenia.

4 Is there free online access available to the legal basis mentioned above?

Link opens in new windowCode of Obligations of the Republic of Slovenia

Link opens in new windowStatutory Default Interest Rate Act

Link opens in new windowConsumer Protection Act

Last update: 28/06/2019

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Slovakia

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Default interest is a sanction for default on a debt. It is paid in addition to the debt, and is set as a percentage of the amount outstanding. By law, default on a debt changes the content of the creditor’s rights and the debtor’s obligations, as it establishes new rights and obligations in addition to the obligation to pay the debt, regardless of whether the debtor caused the default or not.

For statutory default interest, Slovak law distinguishes between default interest under Section 517(2) of Act No 40/1964, the Civil Code (Občianský zákonník), and default interest under Section 369 of the Commercial Code (Obchodný zákonník). Under civil law the default interest rate cannot be contractually negotiated, i.e. the contracting parties cannot agree on a rate higher than the one set by law, in contrast with commercial law, which favours an agreement between businesses on the default interest rate; if no rate has been agreed, the creditor is entitled to default interest at the statutory rate.

Statutory interest is therefore straightforward interest on default, the amount of which is defined by law depending on whether the case in question is covered by civil or commercial law. Under civil law default interest may be no higher than the rate specified by law (i.e. a lower rate can be agreed) and in the absence of any contractual agreement, default interest, if the creditor demands it, is automatically set at the statutory rate. Under commercial law default interest may be higher or lower than statutory interest, and statutory interest is only relevant in the absence of any contractual agreement.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Under Section 517(2) of the Civil Code, the statutory rate for default interest is defined by Regulation No 87/1995 (nariadenie č. 87/1995 Z.z.) such that the default interest rate is five percentage points higher than the European Central Bank’s base rate on the first day of default on a debt. Five percentage points are therefore added to the ECB base rate (i.e. the rate for main refinancing operations). ECB interest rates for individual periods are available at Link opens in new windowhttps://www.nbs.sk/en/statistics/financial-markets/interest-rates/interest-rates-of-the-ecb. The default interest rate on the first day of default applies for the duration of default, and any subsequent adjustments to the ECB base rate have no effect on the default interest rate.

Under commercial law, statutory interest is governed by Section 369 of the Commercial Code, according to which in the event of default the creditor, if he has discharged his statutory and contractual obligations, is entitled to demand default interest at the rate agreed in the contract, with no requirement for any special notification. As stated above, in commercial relationships the default interest rate can be contractually modified. However, even when default interest has been contractually agreed, the rate must comply with the principles of fair trading. If not, the right under such an agreement cannot be protected, which means that even if the interest rate was contractually agreed, the court cannot award interest at a rate that would violate these principles. Another exception concerns debts under a consumer contract where the consumer is the debtor, when the agreed default interest may be no higher than the amount specified under civil law.

Under Section 369 of the Commercial Code, if no default interest rate has been agreed, the debtor is obliged to pay default interest at the rate set by the Slovak government in Regulation No 21/2013 (nariadenie č. 21/2013 Z.z.). The legislation permits fixed and variable default interest. The fixed rate is equal to the ECB base rate on the first day of default plus nine percentage points; this rate applies for the duration of default on the debt, and any subsequent adjustments to the ECB base rate will have no effect on the default interest rate (which is why this default interest rate is called the fixed rate). However, instead of fixed interest the creditor can demand variable default interest from the debtor and can therefore require the debtor to pay default interest at the ECB base rate valid on the first day of the relevant calendar half-year plus eight percentage points. If the creditor chooses variable default interest, this method for calculating interest (not the rate set when default occurs, but the method for calculating the rate) applies for the duration of default on the debt. Variable default interest therefore means that the default interest rate can change in line with changes in the ECB base rate valid on the first day of the relevant calendar half-year, i.e. on 1 January and 1 July. ECB interest rates for individual periods are available at Link opens in new windowhttps://www.nbs.sk/en/statistics/financial-markets/interest-rates/interest-rates-of-the-ecb.

3 If necessary, is there further information available on how to calculate statutory interest?

The method for calculating default interest is set out clearly and comprehensibly in the legislation. The current default interest rate is published by the Ministry of Justice of the Slovak Republic (Ministerstvo spravodlivosti Slovenskej republiky) (Link opens in new windowhttps://www.justice.gov.sk/Stranky/Nase-sluzby/Civilne-pravo/Aktualna-sadzba-zakonnych-urokov-z-omeskania/Uvod.aspx). It is also available informally at Link opens in new windowhttp://www.najpravo.sk/, which is often used by Slovak creditors and debtors and their lawyers. This site also allows easy calculations of default interest using a calculator designed specifically for this purpose.

4 Is there free online access available to the legal basis mentioned above?

In addition to the links above, the current wording of the relevant legislation (the Civil and Commercial Codes) and regulations (Regulations Nos 87/1995 and 21/2013) can be found on the websites Link opens in new windowhttp://www.zbierka.sk/ and Link opens in new windowhttps://www.slov-lex.sk/domov.

Last update: 14/01/2019

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Finland

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

“Statutory interest” in the Finnish legislation means both the interest rate that applies to an outstanding debt before the due date and penalty interest for late payments. Provisions on both types of statutory interest are laid down in the Interest Act (633/1982). The obligation to pay interest or penalty interest for late payments is determined under the Interest Act, unless otherwise follows from the obligation of the debtor or a business practice or unless otherwise provided by law (Interest Act, section 2, subsection 1).

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Interest payable on debts: The debtor is not liable to pay interest on the period preceding the due date of a debt (Interest Act, section 3, subsection 1). However, it is possible to agree that interest should be paid. If the liability to pay interest has been agreed without determining the interest rate, the debtor must pay annual interest in accordance with the reference rate referred to in section 12 of the Interest Act (Interest Act, section 3, subsection 2).

For credit agreements made by consumers on withdrawals of cash, the provision of Chapter 7, section 17a of the Consumer Protection Act (38/1978) shall also apply, stating that if the amount of the credit or the credit limit is less than EUR 2 000, the APR of the credit may not exceed the reference rate referred to in section 12 of the Interest Act plus 50 percentage points.

Penalty interest on late payments: For agreements falling within the scope of the Act on the terms of payment for commercial contracts (30/2013), the statutory interest on late payments is eight percentage points higher than the reference rate in force at the time in question (Interest Act, section 4a, paragraph 1), i.e. currently the rate is 8.0% (figure for autumn 2017). For other agreements, the statutory penalty interest on late payments is seven percentage points higher than the reference rate in force at the time in question (Interest Act, section 4), i.e. currently 7.0% (figure for autumn 2017).

As for consumer debt, the provisions of the Interest Act on penalty interest on late payments are mandatory legislation, and it is not possible to agree on a higher rate of interest on late payments (Interest Act, section 2, subsection 2). For other debt, it is possible to agree on the rate of interest on late payments. However, in contracts falling within the scope of the Act on the terms of payment for commercial contracts, it is not possible to agree that the creditor shall not have the right to charge penalty interest on late payments, and if the debtor is a contracting entity, it is not possible to agree on a lower interest rate for late payments than that determined according to section 4a, subsection 1 of the Interest Act (Act on the terms of payment for commercial contracts, section 8).

3 If necessary, is there further information available on how to calculate statutory interest?

The reference rate referred to in the Interest Act is the interest rate applied by the European Central Bank to its most recent main refinancing operation carried out before the first calendar day of each half-year rounded up to the nearest half-percentage point (Interest Act, section 12).

4 Is there free online access available to the legal basis mentioned above?

An unofficial English translation of the Interest Act can be found at: Link opens in new windowhttp://www.finlex.fi/fi/laki/kaannokset/1982/en19820633.pdf

The Finnish and Swedish versions of the Act can be found at:   Link opens in new windowhttp://www.finlex.fi/fi/laki/ajantasa/1982/19820633?search%5btype%5d=pika&search%5bpika%5d=Korkolaki

The Act on the terms of payment for commercial contracts can be found at: Link opens in new windowhttp://www.finlex.fi/fi/laki/ajantasa/2013/20130030?se

The Consumer Protection Act can be found at:: Link opens in new windowhttp://www.finlex.fi/fi/laki/ajantasa/1978/19780038?se

Last update: 23/07/2019

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Sweden

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Rules on interest are laid down in the Interest Act (räntelagen, 1975:635). These rules apply except where otherwise provided by contract, promise or other specific enactment. The Act does, however, declare some contractual terms null and void.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Claims for refund

Where a claim is made for the refund of a payment, for example on grounds of breach of contract, the interest rate is the reference rate (which in February 2016 was 0 %) plus two percentage points. Interest is payable from the date when the payment was made, up to and including the date of repayment, or, if the repayment is not made in good time, up to and including the date from which interest becomes payable under the rules on outstanding claims.

Outstanding claims

On outstanding claims interest is payable at the reference rate (0 % in February 2016) plus eight percentage points. The following general rules apply.

(a) Where the due date was determined in advance, interest is payable on the claim from that date.

(b) Where the claim is based on a person’s duty to account for money that he or she has received from a principal or from a third party, interest is payable from the date on which the account is rendered, or, if no account is rendered, from the date on which the account ought to have been rendered.

(c) For other outstanding claims, the general rule is that interest is payable from the thirtieth day after the creditor sends an invoice or otherwise presents a demand for payment of a stated sum, indicating that failure to pay will entail an obligation to pay interest. The debtor is not required to pay interest in respect of the time before he or she receives the invoice or demand.

In commercial dealings between traders, interest has to be paid regardless of whether the demand for payment indicates that failure to pay will entail an obligation to pay interest. The same applies where in the course of his or her commercial dealings a trader has a claim against a public authority or other public body for goods or services supplied.

In the case of a claim for damages (skadestånd) or other similar compensation that cannot be determined without further inquiry, interest is payable on the sum due from the thirtieth day after the creditor demands payment and presents a statement of what he or she can reasonably claim. The debtor is not obliged to pay interest in respect of the time before he or she receives the demand and the statement.

Regardless of any other rule, interest on an outstanding claim is in any event payable from a date no later than the date of notification of an application for an order for payment (betalningsföreläggande) or summons (stämning i mål) in an action seeking payment of the claim.

If the claim is for damages arising out of an intentional breach of the law, and the damages sought do not take the form of a life annuity (livränta), interest is payable from the date on which the damage was suffered.

Claims that carry interest before the due date

If a claim carries interest at the time it falls due for payment, and payment is not made in good time, the rate of interest that applied before the due date continues to apply. But the interest rate payable can never be less than what would have been payable on an outstanding claim that did not carry interest before the due date.

Adjustment of interest rate

The interest rate may be adjusted if the debtor has been prevented from paying in good time by reason of illness, unemployment or any other similar circumstance outside his or her control and it would be unreasonable to require him or her to pay full interest in respect of the resulting delay.

3 If necessary, is there further information available on how to calculate statutory interest?

No.

4 Is there free online access available to the legal basis mentioned above?

This link gives access to an unofficial version of the Link opens in new windowInterest Act (räntelagen).

Last update: 23/02/2017

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - England and Wales


1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Statutory interest is the interest rate that the law prescribes can be applied to an outstanding claim for a sum of money. The law of England and Wales does provide for statutory interest to be applied in appropriate cases.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Amount/rate of the statutory interest

Criteria for the application of the statutory interest

(if necessary, for example delay, consumer contract, etc.)

Legal basis

8%

Where no other statutory interest rate or contractual interest rate applies a creditor can claim interest at an annual rate of 8%.

Section 17 of the Judgments Act 1838

S 35A of the Senior (frmr Supreme) Court Act 1981 in the High Court (“s 35A”)… simple interest at such rate as the court thinks fit or as rules of court may provide on all or any part of the debt for all or any part of the period between the date when the cause of action arose and the date of the payment…”

S 69 of the County Courts Act 1984 in the county court (“s 69”)

…in proceedings (whenever instituted) before a county court for the recovery of a debt or damages there may be included in any sum for which judgment is given simple interest, at such rate as the court thinks fit or as may be prescribed, on all or any part of the debt or damages in respect of which judgment is given, or payment is made before judgment, for all or any part of the period between the date when the cause of action arose…”

S 3 of the Law Reform (Miscellaneous Provisions) Act 1934 for courts of record other than the High Court and the county

court, eg the Court of Appeal (Civil Division) when it gives judgment.

“”In any proceedings tried in any court of record for the recovery of any debt or damages, the court may, if it thinks fit, order that there shall be included in the sum for which judgment is given interest at such rate as it thinks fit on the whole or any part of the debt or damages for the whole or any part of the period between the date when the cause of action arose and the date of the judgment…”

S 57(1)(b) of the Bills of Exchange Act 1882 on dishonoured bills of exchange from presentment if bill is payable on demand and, otherwise, on maturity.

SS 86 to 92 of the Taxes Management Act 1970 on overdue taxes

Art 14 of the Solicitors (Non Contentious Business) Remuneration Order 1994 on unpaid solicitors’ bills for non-contentious work, including paid disbursements and VAT, but the rate cannot exceed the judgment debt rate, ie 8% per annum.

S 49 of the Arbitration Act 1996, which gives the tribunal power to award simple or compound interest “from such dates, at such rates and with such rests as it considers meets the justice of the case”.

 

Late Payment of Commercial Debts (Interest) Act 1998 (“the 1998 Act”).

And consider further the CPR CPR rule 16.4(1)(b) and (2) require the claimant to state in the particulars of claim (or counterclaim) that he is seeking interest and to state whether he is claiming it under a contract an enactment and if so which or some other basis and if so which.

If the claim is for a specified amount of money, the claimant must state:

the percentage rate at which interest is claimed

the date from which it is claimed

the date to which it is calculated, not later than the date of issue of the claim form

total amount of interest claimed to the date of calculation

the daily rate of interest at which interest accrues after the date of calculation

8% above the Bank of England base rate. The reference rate for the Bank is set once every six months on 30 June and 31 December.

Businesses and public sector bodies have a statutory right to claim interest on late payment of commercial debts arising from contracts agreed on or after 7 August 2002.

Late Payments of Commercial Debt (Interest) Act 1998

 

3 If necessary, is there further information available on how to calculate statutory interest?

Interest may be claimed from the date when the sum became due to the date a claim is issued and also at the same rate up to the date of judgment. Interest can also be claimed from the date of judgment at the same rate for High Court judgments of any value and for county court judgments over the value of £5000. Only simple interest applies. CPR 44 2 (6)(g) gives the court the power to order interest on cost incurred before judgment.


4 Is there free online access available to the legal basis mentioned above?

The relevant legislation can be found at the following links:

Link opens in new windowJudgments Act 1838

Link opens in new windowSupreme Court Act (renamed as the Senior Courts Act) 1981

Link opens in new windowCounty Courts Act 1984

Link opens in new windowLate Payments of Commercial Debt (Interest) Act 1998

Link opens in new windowThe County Courts (Interest on Judgment Debts) Order 1991 amended by Link opens in new windowthe County Courts (Interest on Judgment Debts) (Amendment) Order 1996

Last update: 17/12/2018

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Northern Ireland

Late Payments of Commercial Debt (Interest) Act 1998

Link opens in new windowhttp://www.legislation.gov.uk/ukpga/1998/20/contents

The Late Payment of Commercial Debts (Rate of Interest) (No.3) Order 2002

Link opens in new windowhttp://www.legislation.gov.uk/uksi/2002/1675/contents/made

The Late Payment of Commercial Debts Regulations 2002

Link opens in new windowhttp://www.legislation.gov.uk/uksi/2002/1674/contents/made

The County Courts (Northern Ireland) Order 1980

Link opens in new windowhttp://www.legislation.gov.uk/nisi/1980/397/contents

The Judicature (Northern Ireland) Act 1978

Link opens in new windowhttp://www.legislation.gov.uk/ukpga/1978/23/contents

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

As per the situation with England & Wales, statutory interest is the interest rate that the law prescribes can be applied to outstanding claims for money owed on a commercial debt. Statutory interest can be claimed under the Late Payment of Commercial Debts (interest) Act 1998. Statutory interest does not apply when you sell to the public. Both seller and buyer must be acting in a commercial capacity.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Amount/rate of the statutory interest

Criteria for the application of the statutory interest

(if necessary, for example delay, consumer contract, etc.)

Legal basis

Maximum of 8% interest on General and Special Damages Award.

N.B. This is not technically a ‘statutory interest’ rate but rather the interest rates that apply outside of the scope of the Late Payment of Commercial Debts (interest) Act 1998, i.e. a non-commercial, simple interest.

Over the last number of years the courts have conventionally, within their discretion, awarded interest at 2% for general damages (from the date of service of the writ of summons) and 6% for special damages (from the date the loss incurred).

This practice was affirmed in McDowell v Smyth and MIB (1996)

The courts’ powers to employ discretion and award simple interest on debts and damages are contained within:

Article 45A of the County Courts (Northern Ireland) Order 1980; and

Section 33A of The Judicature (Northern Ireland) Act 1978.

8% above the Bank of England base rate.

The reference rate for the Bank is set once every six months on 30th June and 31st December.

The base rate on 31 December will be used for debts becoming late between 1 January and 30 June. The rate in force on 30 June will be used from 1 July to 31 December.

Businesses and public sector bodies have a statutory right to claim interest on late payment of commercial debts arising from contracts agreed on or after 7 August 2002.

Statutory interest can be claimed after late payment has been received. The limit is six years in Northern Ireland. The interest usually runs from 30 days after it was due and claimed. A contract cannot exclude statutory interest but it is not compulsory to claim it.

Late Payments of Commercial Debt (Interest) Act 1998

The Late Payment of Commercial Debts (Rate of Interest) (No.3) Order 2002

The Late Payment of Commercial Debts Regulations 2002

3 If necessary, is there further information available on how to calculate statutory interest?

Calculating the interest due is a straightforward process. First calculate what the interest would be for a full year. This is done by multiplying the amount owed by the total rate of interest (base rate plus 8%). Then calculate the daily interest by dividing the annual interest by 365. The interest due is thus calculated by multiplying the daily interest by the number of late days. You charge interest on the gross amount of the debt, including any element of VAT, but you do not pay VAT on the interest.

4 Is there free online access available to the legal basis mentioned above?

The relevant legislation can be found at the following links:

Link opens in new windowLate Payments of Commercial Debt (Interest) Act 1998

Link opens in new windowThe Late Payment of Commercial Debts (Rate of Interest) (No.3) Order 2002

Link opens in new windowThe Late Payment of Commercial Debts Regulations 2002

Link opens in new windowThe County Courts (Northern Ireland) Order 1980

Link opens in new windowThe Judicature (Northern Ireland) Act 1978

Last update: 05/02/2019

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Scotland

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Statutory interest is the interest rate that the law prescribes can be applied to an outstanding claim for a sum of money. The law of Scotland does provide for statutory interest to be applied in appropriate cases.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Amount/rate of the statutory interest

Criteria for the application of the statutory interest

(if necessary, for example delay, consumer contract, etc.)

Legal basis

8%

Where no other statutory interest rate or contractual interest rate applies a creditor can claim interest at an annual rate of 8% on the amount of a court decree or extract.

Sheriff Courts (Scotland) Extracts Act 1892 section 9, as substituted by article 1 of the Act of Sederunt (Interest in Sheriff Court Decrees or Extracts) 1975 (SI 1975/948) and amended by article 2 of the Act of Sederunt (Interest in Sheriff Court Decrees and Extracts) 1993 (SI 1993/769) - Sets the judicial interest rate at 8% per annum.

Act of Sederunt (Rules of the Court of Session 1994 (SI 1994/1443) Rule 7.7 - Sets the judicial interest rate at 8%.

Employment Tribunals (Interest) Order 1990 (SI 1990/479) Articles 3-4 – Applies the "42 day rule" and interest at rate specified in section 17 of the Judgments Act 1838 (which, as amended by article 2 of the Judgment Debts (Rate of Interest) Order 1993 (SSI 1993/564), is 8%).

Employment Tribunals (Interest on Awards in Discrimination Cases) 1996 (SI 1996/2803) Article 8 - Interest applies from the day after the date of the decision at the rate fixed, for the time being, by section 9 of the Sheriff Courts (Scotland) Extracts Act 1892.

8% above the Bank of England base rate.

For commercial debts, the Late Payments of Commercial Debt (Interest) Act 1998 provides that interest is payable on debts due in order to protect suppliers whose financial position makes them vulnerable if their qualifying debts are paid late and to generally deter the late payment of qualifying debts.

Late Payments of Commercial Debt (Interest) Act 1998 (rate specified by article 4 of the Late Payment of Commercial Debts (Rate of Interest) (Scotland) Order 2002 (SSI 2002/336)).

Such rate as the court may determine

Court of Session Act 1988 section 42 - Interest may awarded where an appeal to the House of Lords is dismissed for want of prosecution. The rate of interest, simple or compound, is as the Inner House of the Court of Session thinks fit.

Interest on Damages (Scotland)
Act 1958

3 If necessary, is there further information available on how to calculate statutory interest?

Interest may be claimed from the date when the sum became due. Generally simple interest applies. The United Kingdom Supreme Court may, when hearing an appeal from the Inner House of the Court of Session, make such order with regard to interest, simple or compound, as it thinks fit.

4 Is there free online access available to the legal basis mentioned above?

The relevant legislation can be found at the following links:

Link opens in new windowSheriff Courts (Scotland) Extracts Act 1892

Link opens in new windowAct of Sederunt (Interest in Sheriff Court Decrees and Extracts) 1993

Link opens in new windowCourt of Session Act 1988

Link opens in new windowEmployment Tribunals (Interest) Order 1990

Link opens in new windowAct of Sederunt (Rules of the Court of Session 1994

Link opens in new windowEmployment Tribunals (Interest on Awards in Discrimination Cases) 1996

Link opens in new windowInterest on Damages (Scotland) Act 1958

Link opens in new windowLate Payments of Commercial Debt (Interest) Act 1998

Link opens in new windowLate Payment of Commercial Debts (Rate of Interest) (Scotland) Order 2002

Last update: 25/04/2019

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.

Statutory interest - Gibraltar

1 Is "statutory interest" provided for in the Member State? If so, how is "statutory interest" defined in this Member State?

Statutory interest is the interest rate that the law prescribes can be applied to an outstanding claim for a sum of money. The law of Gibraltar does provide for statutory interest to be applied in appropriate cases.

2 If yes, what is the amount/rate and legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions apply?

Amount/rate of the statutory interest

Criteria for the application of the statutory interest

(if necessary, for example delay, consumer contract, etc.)

Legal basis

8%

Where no other statutory interest rate or contractual interest rate applies a creditor can claim interest at the rate prescribed for such debts from time to time in the High Court in England – currently an annual rate of 8%.

Section 36 of the Supreme Court Act 1960

Judgment Debts (Rates of Interest) Order 2000

8% above the base rate set by the Gibraltar Savings Bank for savings on the day the debt became due.

Businesses and public sector bodies have a statutory right to claim interest on late payment of commercial debts.

Late Payments of Commercial Debt (Interest) Act 2003

3 If necessary, is there further information available on how to calculate statutory interest?

For certain debts, interest may be claimed from the date when the sum became due to the date a claim is issued and also at the same rate up to the date of judgment. Interest can also be claimed from the date of judgment at the rate prescribed for such debts from time to time in the High Court in England – currently an annual rate of 8%. Only simple interest applies.

4 Is there free online access available to the legal basis mentioned above?

The relevant legislation can be found at the following links:

Link opens in new windowSupreme Court Act 1960

Link opens in new windowJudgment Debts (Rates of Interest) Order 2000

Link opens in new windowLate Payments of Commercial Debt (Interest) Act 2003

Last update: 01/04/2019

The national language version of this page is maintained by the respective EJN contact point. The translations have been done by the European Commission service. Possible changes introduced in the original by the competent national authority may not be yet reflected in the translations. Neither the EJN nor the European Commission accept responsibility or liability whatsoever with regard to any information or data contained or referred to in this document. Please refer to the legal notice to see copyright rules for the Member State responsible for this page.