Regulatory Alerts2023-01-01
Law on Default Interest Rate
The Central Bank of Montenegro issues this law to establish the statutory default interest rate for debtors failing to settle monetary liabilities where no contractual rate exists. The rate is calculated as the European Central Bank's main refinancing rate plus eight percentage points, with the Central Bank publishing the specific semi-annual rates on its website and in the Official Gazette. The legislation mandates annual simple interest calculations based on a precise day-count formula and excludes liabilities where other interest rates are already stipulated by law.
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