On 12 February 2021, the General Administration of the Treasury of the Federal Public Service Finance communicated the legal interest rate determined in accordance with the method provided for by the law of 5 May 1865 relating to interest loans.
For the year 2021, this legal interest rate remains at 1.75% and applies:
• to private matters between natural persons as well as between legal entities (civil matters);
• transactions between enterprises and private individuals (commercial matters).
The interest rate applicable to late payments in commercial transactions will remain at 8% for the first half of 2021. A commercial transaction consists in any transaction carried out against payment:
• between enterprises, i.e. also between members of the liberal professions, the self-employed or companies in the non-market sector;
• or between enterprises and public authorities, when the debtor is the public authority and the contract falls under “small contracts” regime, i.e. the amount due is estimated at less than EUR 8,500, or less than EUR 30,000 in the case of a contract in the water, postal, energy or transport sectors;
• and which relates either to the supply of goods, the provision of services or the design and execution of public works and civil engineering works.
These two percentages of 1.75% and 8% only apply if no other rate has been agreed. The parties can always agree on an interest rate that they will apply in the event of late payment, which then constitutes contractual interest for late payment.
For more information on this subject, please do not hesitate to contact Mr Didier CHAVAL.
The Cairn Legal team.