Of course and in Bulgaria on overdue payments may be charged interest rate. How can we determine these rates? Is there a formula?
Statutory interest is due when the debtor is in default. Bulgarian law determines when the debtor has fallen into default. It is different for the various types of commitments.
When the day of the commitment is given, the debtor is in default after its expiration. But if that day has passed after the death of the debtor, his heirs fall in default after 7 days of invitation.
If no day of execution the debtor is in default after being invited by the creditor.
In the tort liability of the debtor shall be deemed in default and without invitation.
European law also establishes other deadlines in the fight on combating late payment in commercial transactions – DIRECTIVE 2011/7/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL. There is stated:
1. Member States shall ensure that, in commercial transactions between undertakings, the creditor is entitled to interest for late payment without the necessity of a reminder, where the following conditions are satisfied:
(a) the creditor has fulfilled its contractual and legal obligations; and
(b) the creditor has not received the amount due on time, unless the debtor is not responsible for the delay.
2. Member States shall ensure that the applicable reference rate:
(a) for the first semester of the year concerned shall be the rate in force on 1 January of that year;
(b) for the second semester of the year concerned shall be the rate in force on 1 July of that year.
3. Where the conditions set out in paragraph 1 are satisfied, Member States shall ensure the following:
(a) that the creditor is entitled to interest for late payment from the day following the date or the end of the period for payment fixed in the contract;
(b) where the date or period for payment is not fixed in the contract, that the creditor is entitled to interest for late payment upon the expiry of any of the following time limits:
(i) 30 calendar days following the date of receipt by the debtor of the invoice or an equivalent request for payment;
(ii) where the date of the receipt of the invoice or the equivalent request for payment is uncertain, 30 calendar days after the date of receipt of the goods or services;
(iii) where the debtor receives the invoice or the equivalent request for payment earlier than the goods or the services, 30 calendar days after the date of the receipt of the goods or services;
(iv) where a procedure of acceptance or verification, by which the conformity of the goods or services with the contract is to be ascertained, is provided for by statute or in the contract and if the debtor receives the invoice or the equivalent request for payment earlier or on the date on which such acceptance or verification takes place, 30 calendar days after that date.
Since Bulgaria is not yet accepted in the Euro zone is applicable the following rule – for a Member State whose currency is not the euro, the equivalent rate set by its national central bank;
The statutory interest on overdue payments in Bulgarian Lev and foreign currency in Bulgaria is determined by the Council of Ministers Decree.
Determined by the annual rate of statutory interest for overdue payments as
BGN – the base rate of the Bulgarian National Bank for the period plus 10 points;
In convertible currency – the three-month LIBOR for the respective currency plus 10 points.
The daily amount of statutory interest for overdue payments is equal to 1/360 part of the annual amount.