Clifford Chance

New method of calculating statutory interest

11 December 2015

The beginning of 2016 heralds major changes to the method of calculating interest on all civil law transactions. The amended provisions come into force on 1 January 2016. They change first and foremost the method of calculating statutory interest distinguishing between the calculation of default interest and interest on principal and, in the case of default interest, between the calculation of such interest in transactions between businesses or between businesses and certain public entities (i.e. transactions between professionals) and transactions between other types of parties. They also introduce a new method of calculating maximum interest.

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