Government endorse bill to lower default interest

The Croatian government endorsed a bill of amendments to the legislation regulating relations between contracting parties, which will result in decreasing default interest and which was praised by Justice Minister Orsat Miljenic as the first step towards legal regulation of interest rates

The endorsed bill envisages that a rate for default interest under contracts between companies and bodies under public law would go down from the current 15% to 10.14%, while default rate for business transactions would go from the current 12.14% to 10.14%.

In other cases, the ceiling for late payment interest will go down from the current 12% rate to 8.14%.

Miljenic said that Croatia was one of EU countries with highest interest on arrears.

The bill proposed today will help both citizens and the economy, and we are now to bring order to the entire system of interest rates, he said.

(Text: Hina)

News | Economy