Interest rates

Croatia
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European Judicial Network
European Judicial Network (in civil and commercial matters)

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

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 legal basis for it? If different rates of statutory interest are provided for, what circumstances and conditions 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, is there further information available on how to calculate statutory interest?

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: https://narodne-novine.nn.hr/

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

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

Last update: 13/11/2019

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