News flash: Significant Increases in Legal Interest Rates
Belgian legal interest rates on late payments also succumb to the current financial and economic climate and see a significant increase starting on January 1, 2023, both for the ordinary legal interest rate and for the rate that applies to trade transactions.
The legal late payment interest rate that will be in effect starting on January 1, 2023, has just been announced by FOD Finance. The fact sheet is available here.
As of January 1, 2023, the standard legal interest rate will increase from 1.50% to a maximum of 5.25%.
In consequence, the interest rate on “trade transactions” goes up from 8% to 10.50%. The Late Payment Act defines “commercial transactions” as “a transaction between companies or between companies and public authorities leading to the supply of goods, the provision of services, or the design and execution of public works and building and civil engineering works against remuneration.” These transactions must be between companies or between companies and public authorities.
Therefore, as a debtor, you must now more than ever pay attention to your payment deadlines since, regardless of any contractual provisions, the interest that has always been required by law as punishment for late payments has increased significantly.
This can be a good moment for your business to assess the general terms and conditions it has about late payments. In addition, there have been significant legal developments regarding unlawful clauses that should also be considered during this assessment. See our earlier essay on Jubel about this topic.
You can always reach us by phone at 03/216.70.70 or by email at joost.peeters@studio-legale.be if you have any more questions on this topic.