Sovereign Decree No. 2.271 of July 6, 2009, which was introduced for setting the new rate of usury, was amended by Sovereign Decree No. 9.169 of March 31, 2022. The latest law regulating this legal matter was published on April 8, 2022 in the Journal de Monaco.
At this point, the Eberhard Advisory team reminds you that the use of the usury rate is a punishable act and a crime provided for in Art. 357 kp. This act is defined as the application of "an effective interest rate which exceeds by more than half the average rate applied on the same terms by bona fide lenders for credit transactions bearing the same risk as the loan in question".
Moreover, the new sovereign order includes legal provisions that also change the frequency of modification of this interest rate. The latest legal regime removes the term "annually" and replaces it with "at least once a year". This means that the new legal architecture allows for the revision of average interest rates several times during the same calendar year.
The second article of the Regulation of March 31, 2022 states the average interest rates at the level of:
For individual clients:
Overdrafts: 14.88%
Personal Loans: 3.32%
Real estate loans: 1.74%
For companies and sole proprietors:
Overdrafts: 8.36%
If you have any questions regarding the matter related to usury rates in the territory of the Principality of Monaco, the Eberhard Advisory team will be happy to support you in this area.
