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[CLICK HERE TO SEE THE UPDATED RATE FOR 2018 IN THIS POST] The prescribed rate of interest, effective from 1 March 2016, is 10.25% per annum. The prescribed rate of interest is linked to the repo rate.  This new figure is in accordance with the formula for calculating the prescribed rate (repurchase rate plus 3.5%).  The new rate takes into account the repo rate increase on 1 January 2016 from 6.25%…
The prescribed rate of interest in South Africa has been changed. With effect from 8 January 2016, interest will be charged at 9.75% per annum, up from the previous rate of 9%. Interest on debts will be calculated at the repo rate plus 3.5%. The repo rate is determined from time to time by the South African Reserve Bank and is currently (January 2016) 6.25%, following an increase in November 2015. When the Reserve…
[CLICK HERE TO SEE THE UPDATED RATE FOR 2018 IN THIS POST] The prescribed rate of interest has been changed. With effect from 8 January 2016, interest will be charged at 9.75% per annum, up from the previous rate of 9%. Interest on debts will be calculated at the repo rate plus 3.5%. The repo rate is determined from time to time by the South African Reserve Bank and is currently (January…
Amendments to the Prescribed Rate of Interest Act are on the horizon. The Judicial Matters Amendment Bill, 2015 seeks to change the prescribed rate of interest to the repurchase rate (the rate at which banks borrow rands from the Reserve Bank) determined by the South African Reserve Bank, plus 3.5% per year. The reasoning behind the proposed change is to create uniformity and to take prevailing market conditions into account in prescribing the rate of…