Base interest rate

The base interest rate is defined in the German Civil Code (BGB) and mainly sets out the default interest arising from contracts after the expiry of a certain period in Germany.

On 1 January 2002, the base interest rate took the place of the previous discount rate. It is determined by the European Central Bank (ECB) on the basis of the benchmark interest rate. The German Civil Code sets out the general default interest fixed at 5 respectively 8 percentage points above the base interest rate. This rate will be recalculated in accordance with the policy rate of the ECB on 1 January and on 1 July every year and published in the German Federal Law Gazette (Bundesgesetzblatt).

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