# Taux D`interet Legal France 2021

The decree sets the legal interest rates that will apply in the first half of 2022 to the claims of natural persons not acting for professional purposes, on the one hand, and to all other cases, on the other hand. The ECB has decided to act late and raise its key interest rate by 0.75% since its creation in June 1998. Previously, the legal interest rate was uniform, regardless of the creditor. The historical values of the legal interest rate are shown in the following table. The decree of 26 June, published in the Official Journal of 27 June 2019, sets the legal interest rate that will enter into force on 1 July 2019 for the second half of the (…) The legal interest rate applicable in the 1st half of 2018 was published in the Official Journal of 30 December 2017. It is 3.73% for individuals, against 3.94% for the second half of 2017. (Source: JORF n° 0301 of 28 December 2021, text n° 19) Entry into force: The Order comes into force on 1. January 2022 in force The legal interest rates applicable in the first half of 2022, i.e. from 1 January to 30 June 2022, were set by the decree of 26 December 2021. These are: What is the legal interest rate for? It allows the calculation of the amount of penalties to be applied against the debtor (the one who has a debt) in case of late payment of a sum of money. The legal interest rate is not the same depending on whether the creditor (the one to whom the money is owed) is a natural person or not. The legal interest rate is used in several areas (banking, taxation, justice, etc.).

In particular, the tax administration, banking institutions, over-indebtedness commissions and the judiciary use it. The legal interest rate applicable to a debtor following a court decision is calculated twice a year. What is the 2022 legal tariff? Since 2015, the increased interest rate corresponds©to the interest rate, increased by 5 points: to calculate simple statutory interest, © the amount due must be multiplied by the number of days late and by© the interest rate©applicable to the period. The result is divided by 100 times the number of days of the year (366 days for leap years, 365 days for others). The legal interest rate makes it possible to calculate the additional amount invoiced to a debtor in the event of late payment of a sum of money. The capital due is thus increased by this legal interest. The legal interest rate differs in several areas, depending on whether the creditor is a natural person or not. Definition of the legal interest rate, statutory interest rate 2022, calculation and history of statutory interest rates, let`s take stock. A further cut in key rates in China, the slowdown of the Chinese economy should confirm the direction of a global recession. Any sum owed by a person on the basis of a court decision must be increased by statutory interest if it is paid late. The calculation of interest depends on the conditions set out in the judgment, the date of actual payment of the amount due and the applicable interest rate.

The amount due is increased by a simple interest rate and, under certain conditions, by an increased interest rate. These rates are updated every six months. The legal interest rate corresponds to a sum of money due to a creditor in the event of late payment, including banking, over-indebtedness, credit, divorce or between merchants. To calculate this amount, multiply the amount due by the number of days of default and the legal interest rate that applies during the period. The result is divided by 100 times the number of days of the year, which corresponds to the following formula: (maturity x days late x legal interest rate) / (365 x 100). The method of setting the legal interest rate changed in 2015. Prior to that date, the legislated interest rate was the arithmetic average of the last twelve monthly averages of actuarial returns for thirteen-week fixed-rate treasury bill auctions. Since January 1, 2015, there are not one, but two legal interest rates. One applies if the creditor is a natural person, i.e. a natural person not acting for business purposes, and the other applies to all other situations. The first corresponds to the key interest rate of the European Central Bank (ECB) plus 60% of the difference between this rate and that of consumer credit and the second corresponds to the ECB interest rate plus 60% of the difference between this rate and that of loans to non-financial corporations. Another novelty: since 2015, the legal interest rate is set for a semester and no longer for an entire calendar year.

Here is the history of the legal interest rate from 1990 to 2014: To calculate the penalty, the following formula must be applied: (due x days late x legal interest rate) / (365 x 100). A decree published in the Official Journal of 28 December 2021 set the legal interest rates applicable in the first half of 2022. The new statutory interest rate will come into effect on 1 January 2022. It is determined according to the calculation methods provided for in Article D 313-1-A of the Monetary and Financial Code. What is the legal interest rate for the first half of 2022? The legal interest rate, which applies between January 1 and June 30, 2022, is: If it has not been paid within the time limit, the legal interest will be added to any sum of money that becomes due following a court decision. The calculation of this penalty depends on the conditions set out in the judgment, the date of actual payment of the debt and the applicable rate. The amount to be paid increases by a simple interest rate and sometimes by an increased interest rate. The increased interest rate corresponds to the legal interest rate, plus 5 points. The calculation of the amount to be reimbursed is as follows: (Amount due x number of days late x applicable legal interest rate) / (365 days x 100) Summary definition Legal interest rate 2022 Historical calculation Increase Definition of the legal interest rate What is the purpose of the legal interest rate? It makes it possible to calculate the amount of penalties to be imposed. The calculation of the amount of interest that a person is ordered to pay depends on the conditions laid down in the judgment, the date of actual payment of the amount due and, of course, the legal interest rate. Therefore, it may be necessary to pay simple or increased interest.

The legal interest rate is a half-yearly interest rate set by order of the Minister for Economic Affairs. It is used to calculate the penalty applicable to a debtor who has not paid the amount of money he owes to his creditor. The latest decree is valid until 30 June 2022. As a reminder, these two statutory interest rates are reviewed once a semester, in January and July. The legal interest rate is mainly used in civil or commercial proceedings in various areas: banking, tax or justice. In particular, tax authorities, banks and over-indebtedness commissions use it. This rate applies, for example, to claims resulting from court decisions (divorce, over-indebtedness, etc.). And the history of the legal interest rate since 2015: As a reminder, the legal interest rate, which will apply in the second half of 2021 between July 1 and December 31, 2021, has been set as follows: Good to know: This legal interest rate should not be confused with default interest, which applies to merchants in the event of simple late payment, including an invoice. These are based on the European Central Bank`s (ECB) key six-monthly interest rate, which applies on 1 January or 1 July, plus 10 percentage points.

The contract or the general conditions of sale may provide for a lower price. The statutory interest rates applicable in the first half of 2020 were published in the Official Journal of 26 December 2020. This rate serves as a reference in different areas for calculating default interest on sums due (rent, credit, over-indebtedness, late repayment by a trader after exercise of a right of withdrawal, amount due following a court decision, etc.). As a reminder, the rates applicable before 1 January 2021 for the second half of 2020 (decree of 15 June 2020) were 3.11% for natural persons and 0.84% for other cases. In the table below, let`s look at the evolution of statutory interest rates over the past few years. The legal interest rate is a rate set each semester by order of the Minister of Economy and Finance.