The German Federal Bank (Deutsche Bundesbank), calculates according to the legal guidelines of § 247, para 1 BGB (civil code) the Base Lending Rate and publishes its current status according to § 247, para 2 BGB (civil code) in the Federal Gazette (Bundesanzeiger).
The Base Lending Rate of the BGB (civil code), serves mainly as basis for the calculation of default interest, § 288 para 1, sentence 2 BGB (civil code). It changes on 01. January and 01. July of each year for the percentage points, for which its reference value has increased or decreased since the last change of the Base Lending Rate. Reference value is the interest rate for the latest main finance operation of the European Central Bank before the first calendar day of the concerning half-year.
The fix interest rate for the latest main finance operation of the European Central Bank on 31. December 2019 is 0.00 % and remains therefore unchanged since the last change of the Base Lending Rate which was the 01. July 2019 (the fix interest rate of the last main finance operation in June 2019 has also been 0.00 %).
Out of this a Base Lending Rate of the BGB (civil code) in height of -0.88 % (before -0.88 %) is calculated with beginning of 01. January 2020.
For the height of the default interest according to § 288, para 1 BGB (civil code), the -0.88% + 5.00 % remain or rather according to § 288 para 2 BGB -0.88 % + 9.00 %.
The new Base Lending Rate will be announced in the issue of the Federal Gazette (Bundesanzeiger) of 6. January 2020.
Source: press release German Bundesbank
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