ARTICLE
11 May 2022

Amendement Of The Usury Rate In Monaco

CP
CMS Pasquier Ciulla Marquet Pastor & Svara

Contributor

CMS Monaco is a leading law firm, providing local and international clients with a one-stop shop service for all their legal challenges, both in counselling and litigation. The firm was created in 2009 and is strongly anchored in the Monegasque market and well familiar with its dynamic economy. In 2017 the firm joined CMS, an organisation of independent law firms, composed of 80+ offices in 45+ countries, with over 6,000 lawyers worldwide, making it the only law firm in Monaco with such significant international reach. Today CMS Monaco is composed of 80+ professionals, including five partners (Avocats Associés Monégasques) and over 50 associates, experts in Monegasque law. The firm is structured around seven practice groups: Private Clients, Business Law, Real Estate & Construction, Employment, Banking & Finance, Tax and Criminal law. The teams regularly work together on complex cross-practice cases with high stakes for a large variety of Monegasque and international clients, such as companies of various sect
The Sovereign Order n° 2.271 of 6th July 2009 relating to the determination of the usury rate was amended by Sovereign Order n° 9.169 of 31st March 2022, published on 8th April 2022 in the Journal de Monaco.
Monaco Government, Public Sector

The Sovereign Order n° 2.271 of 6th July 2009 relating to the determination of the usury rate was amended by Sovereign Order n° 9.169 of 31st March 2022, published on 8th April 2022 in the Journal de Monaco.

As a reminder, the application of a usurious rate is a criminal offense provided by Article 357 of the Code Pénal defined as the use of "an effective interest rate that exceeds by more than half the average rate applied under the same conditions by lenders acting in good faith for credit transactions involving the same risks as the loan in question".

The new Sovereign Order also amends the periodicity of the modification of this interest rate. The term "annually" is replaced by the terms "at least once a year", allowing the revision of average interest rates several times during the same year.

 The second article of the Ordonnance of 31 March 2022 sets the average interest rates at:

For individuals:

  • Overdrafts: 14,88 %
  • Personal loans: 3,32 %
  • Property loans: 1,74 %

For companies and sole traders:

  • Overdrafts: 8,36 %

Click here to access the Sovereign Order n° 9.169 of 31 March 2022.

Originally published April 26, 2022

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