Regulatory Alerts2000-02-09
CICR and Urgent DM Deliberation - Deliberation of 9 February 2000
The Interministerial Committee for Credit and Savings issued a regulation on 9 February 2000 establishing the methods and criteria for compound interest in banking and financial operations under Article 120 of the Banking Act. The decree specifies distinct rules for current accounts, installment loans, and savings operations, generally prohibiting periodic capitalization of overdue interest except under specific contractual or judicial conditions. It mandates transparency in contract terms and sets a compliance deadline of 30 June 2000 for adapting existing contracts, with stricter approval requirements if such changes worsen client conditions.
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