As we said in the first paragraph, the legal interest of money is an annual reference. If the loan had been for a period of one year, we would have to apply the legal interest of the current year to that amount, and we will receive the amount to be repaid. The lowest legal interest rate in history was set by the general state budget laws for the years 2016, 2017, 2018 (this one valid until 2020) and 2021 at 3.00%; The highest figure of 11% was set by the 1985 Finance Act (see table). If the obligation consists in the payment of a sum of money and the debtor is in default, compensation for damages consists, in the absence of an agreement to the contrary, in the payment of the agreed interest and, failing agreement, in legal interest. The legal interest of the money should therefore be determined by the Cortes Generales (directly, with the approval of the finance laws of each year or by the ratification of a previous royal decree-law approved by the government of the nation), taking into account the economic situation and expectations that exist at the time of creation and publication. at the time of publication in the Official State Gazette (BOE) of the legal rank standard it determines. [1] Since the 1984 Act, it has generally been in force for the calendar year, although this has not always been the case since, as already mentioned, the economic situation sometimes required an extension, or even an amendment, before the end of the annual period initially provided for in the corresponding Finance Act establishing it. It should be noted historically that within the territorial scope of the Spanish protectorate of Morocco, the legal interest rate had a specific treatment: it was set at 6% per year and no other interest rate higher than 12% per year could be agreed, according to the provisions of the Dahir of 1 June 1914 (B.O. Morocco of 10), later by Dahir of March 29, 1946 (B.O. Morocco No. 19 of May 10) until the end of the protectorate at 4% per year. Year. Legal interest on money is a type of compensation for breaches of obligations (debts, loans, etc.) if the parties had not provided for such compensation.
It is established by the Civil Code and regulated and updated annually in the General Law on the State Budget (hereinafter referred to as the Budget Law). And finally, that its uses range from mandatory relationships (loans) between individuals, between companies and previous ones (mortgages, etc.) and between the tax administration and managers if they do not meet their obligations. For the determination of pre-1985 legal interests, see the previous section on historical context. For 2021, the first coalition government, composed of the PSOE and Podemos with the support of other formations, returned to budgetary normality and entered into force on 1 January. (a) payments made in the course of commercial transactions with consumers. (b) interest relating to legislation on cheques, promissory notes and bills of exchange and the payment of damages, including payments made by insurance undertakings. (c) debts which are the subject of bankruptcy proceedings against the debtor subject to the provisions of its special legislation. Change in the statutory monetary rate for 2009 However, between the entry into force of the abovementioned Law 24/1984 of 29 June 1984 and the entry into force of the Finance Law for 1985, statutory interest on the currency was treated in the same way as the base or rediscount rate of the Bank of Spain. fixed at 8 per cent per annum by the validity of the decree of the Ministry of the Economy of 23 July 1977 (BOE No.
177 of 26 July). Subsequently, Law 66/1997 of 30. Article 68 definitively establishes any link between the legal monetary interest rate and the base rate of the Bank of Spain or the rediscount rate of the Spanish legal system, stipulating: “The references made in the legislation in force to the base rate of the Bank of Spain shall be understood as the legal interest rate of the currency fixed in the Law on the General Budgets of the State.” Unless otherwise agreed, the replacement of the base rate of the Bank of Spain by the legal monetary rate does not exempt from compliance with the provisions of these contracts containing references to the aforementioned interest rate, nor does it confer on the parties the power to modify their content or unilaterally terminate them. For various reasons, they do not return the money, and we have to go to court to get it back. We receive a favorable judgment, which expresses the obligation of the debtor to return, as well as the refund, which adds the legal interest on the money. Well, they should return our 6,000 euros plus 88.76 euros. according to the legal interest on the money requested for 6 months. This translates into a total of €6,088.76.
Similarly, article 576 of Law 1/2000 of 7. January on civil proceedings procedural interest for late payment, the provision of which provides in substance that, from the date of a judgment or other decision establishing an obligation to pay a sum of money in a court decision (civil, criminal, contentious, administrative or labor), and with the exception of the specialties provided by law for the Treasury, For sums ordered to be paid in these court orders, the statutory interest on the money is increased by two points, unless expressly agreed between the parties or in a specific applicable legal provision. In addition to the particularities already mentioned (default interest and commercial default interest), the law sometimes introduces specific information on default interest when regulating certain matters, which must be particularly applicable to these matters. Legal interest was first set by the Civil Code of 24 July 1889, with an annual interest rate set at 6%, then at 5% by the law of 2 August 1899. The Law of 7 October 1939 reduced it to 4% and remained at that level until the provisions of Law 24/1984 of 29 June 1984 amending the statutory interest rate, which was laid down in Article 1 thereof.