Regulatory Alerts2019-08-29
Regulation on Interest for Late Payments for Credit Instruments
The Central Bank of the Republic of Kosovo issued this regulation to standardize how licensed lending financial institutions calculate and charge interest on late payments for credit instruments. It establishes a biannually published reference rate plus an 8 percentage point fixed rate, mandating a mathematical formula based on the overdue principal, annual interest rate, and calendar days. The rule also defines a maximum 21-day tolerance period, requires clear contractual disclosure of late payment consequences, and applies to both new and existing credit instruments.
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