Togo: Government upscales legal interest rate for 2024

Economic governance
Thursday, 11 April 2024 16:51
Togo: Government upscales legal interest rate for 2024

(Togo First) - The legal interest rate in Togo is set at 5.0336% this year. The government disclosed the figure on April 9, in a Cabinet meeting held in Lomé, the capital. 

A decree was issued in this framework, per “the uniform law concerning the legal interest rate in the countries of the West African Monetary Union (UMOA)”. This law “requires the decree to establish the legal interest rate for all matters for the calendar year.”

This year’s legal interest rate is up by 81 basis points (0.8131 percentage points) compared to last year’s, 4.2205%.

The legal interest rate helps calculate late payment interest in various areas, including commercial transactions, alimony payments, overdue bill payments, and commercial or civil disputes. Defined on a per-calendar-year basis, this rate serves as a benchmark for determining the amount of interest owed in case of payment delays and can be automatically applied in the absence of a specific contractual agreement between the parties involved. Its adjustment, either upward or downward, can thus have financial implications on various disputes and settlements among economic actors.

While the legal interest rate is generally kept relatively low to encourage compliance with payment deadlines and deter unjustified delays, it may occasionally be upscaled, depending on economic conditions and prevailing monetary policies.

Ayi Renaud Dossavi

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