Parliament cuts off post judgment interest rates

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Parliament cuts off post judgment interest rates
Friday, October 03, 2008

Legislation amending post judgment interest rates has been adopted yesterday by the Cyprus Parliament, abolishing the flat 8% rate and providing for fluctuating interest rate at 1,75% over and above the European Central Bank (ECB) base rate.

The preceding statutory framework had been consistently criticised by insurance companies and other disadvantaged stakeholders. The new statutory framework is consistent to EU law which allows interest to be charged on all late payments (after 30 days have lapsed) arising from business to business contracts entered into after the 8th August 2002 on interest rate linked to the ECB base rate.

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