New Law on Default Interest Rate
Tax news, March 2020.
In this issue: New Law on Default Interest Rate
Law on Default Interest Rate (the “Law”) has been published in the “Official Gazette of FBiH”, no. 18/20 as of 6 March 2020. The Law enters into force on the eight day following the day of its publication, i.e. on 14 March 2020.
The most important provisions introduced by the Law are:
- Default interest rate is 10% annually;
- Commercial banks calculate the amount of default interest based on legally valid court decisions, with charging their commission fees;
- The amount of calculated default interest cannot exceed the amount of principal debt.
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