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Date shown in the original: 5 March 2016. Review note: 6 November 2026.

The text of the original article

Bulgaria: combating late payment in commercial transactions — applicable interest rate — image from the original website
Bulgaria: combating late payment in commercial transactions — applicable interest rate — image from the original website

Default interest in Bulgaria

Decree No 426 of 18 December 2014

to determine the amount of statutory interest on overdue monetary obligations

THE COUNCIL OF MINISTERS stated:

Sole Article. (1) The annual statutory interest rate on overdue monetary obligations shall equal the Bulgarian National Bank’s base rate effective on 1 January or 1 July of the current year, respectively, plus 10 percentage points. (2) The daily statutory interest rate on outstanding monetary obligations shall be 1/360 of the annual rate under paragraph 1. (3) The interest rate under paragraph 1 effective on 1 January of the current year shall apply during the first half of that year, and the rate effective on 1 July shall apply during the second half.

Supplementary provisions § 1. The decree introduces the requirements of Directive 2011/7/EC of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions (OJ L 48/1 of 23 February 2011). Final provisions § 2. Council of Ministers Decree No 100 of 2012 determining the statutory interest rate on overdue debts in BGN and foreign currency (State Gazette No 42 of 2012) is repealed. § 3. The decree is adopted pursuant to Article 86(2) of the Obligations and Contracts Act. § 4. This decree enters into force on 1 January 2015.

In essence, the default interest rate in Bulgaria equals the official discount rate of the BNB (Bulgarian National Bank) plus 10%.

An illustrative calculation follows