LAWS TO WATCH: Interest Rates Act

linic-115 May 2014, LPJ Croatia Issue 83

The proposed legislation prescribes the maximum allowed contractual interest rate for contracts between businesses at 12.25%, and the maximum interest rate for contracts with households at 11.35%.  This is significantly less than the current maximum contractual interest rate of 18% allowed by the Contractual Relations Act.  The legislation also enables businesses to agree among  themselves a different default interest rate.  The maximum allowed interest rate on current account overdrafts is 10.35%, instead of the current rate of 11%.

Note: The legislation was sent to the Sabor 1st reading…

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