Slovakia: default interest changes

Slovakia
04/12/2008
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The default interest rules in the Commercial Code for defaults occurring after 15 January 2009 will change:

  • civil and commercial default interest rules will be the same
  • parties to any dealings governed by the Commercial Code are free to agree the default interest rate as till now (with no restrictions on the rate they can agree)
  • the default rate for non-performance of agreements between consumers and businesses is specified by civil law regulations, although the parties are free to agree a lower rate if they wish
  • in the absence of agreement between the parties, the default interest rate for the entire default period will be go out from the base rate valid on the first day of default. However, this may not remain the position for commercial contracts between businesses, as a new method of calculating default interest rates may be introduced by civil regulations
  • the height of default interest for commercial contracts with an international element (where they are governed by Slovak law) is based on civil law regulations, unless the parties agree another height.

Law: Civil Code no. 40/1964 Coll. as amended and implementing regulation - Government decree no. 87/1995 Coll.

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