It should be noted that in the territorial scope of the Spanish Protectorate of Morocco, the legal interest rate had a specific treatment: it was set at 6% per year, and other interest rates of more than 12% per year could not be agreed in accordance with the provisions of Dahir of 1 June 1914 (B.O. Morocco of 10). it is then set at 4% per year by the Dahir from 29 March 1946 (B.O. Morocco No. 19, from 10 May) until the end of the Protectorate. Basically, the vast majority of financial obligations, such as debts and loans, involve the obligation to pay an additional amount of money in situations where repayment deadlines are not met. This indemnity, called legal interest, applies both in the fields of companies and administrations as well as in personal relations, is governed by the provisions of the Civil Code and is updated annually. When this happens, the case is brought before a court, so it is a judge who makes the decision based on what the legal framework prescribes. However, it must be taken into account that no interest on the loan must have been agreed in the contract. In addition, statutory interest is calculated from the date on which the amount should have been paid until the obligation is fulfilled. Therefore, the debtor will see that the interest will accrue to him until he settles the acquired debt. Well, they should return our 6,000 euros plus 88.76 euros.
according to the legal interest of the money applied for 6 months. This translates into a total of €6,088.76. Legal interest is the amount to be paid for the use of the money within a certain period of time. The main feature of the calculation of legal interest is that the price is set by law and not by agreement between the debtor and the creditor. In this sense, it is set as a kind of compensation for the damage caused. In general, this happens when there is an oral agreement between the parties, but the debtor does not return the money within the time limit. For various reasons, they do not return the money, and we have to go to court to get it back. We receive a favorable judgment expressing the obligation of return of the debtor, as well as the repayment, which adds the legal interest of the money. The lowest legal interest rate in history was set at 3.00% by the General State Budget Laws for the years 2016, 2017, 2018 (this time extended with validity until 2020) and 2021; the highest figure of 11% was set by the Finance Act of 1985 (see table). In 2018, the extension of the interest rate in force the previous year was repeated by the application of the constitutional mandate, in which case the lack of legal approval was due to the situation of the parliamentary minority of the PP government, which failed to collect in time the necessary support for the implementation of the budget law before the beginning of the year. Finally, this year`s budget bill was prepared by the People`s Party government in 2018 and approved by Congress in May of the same year, although it negotiated a motion of censure, the approval of which by the Senate, where the PP had an absolute majority, has already taken place with the PSOE government, after having in the meantime won the said motion of censure.
In any case, the General Law on the State Budget for 2018 maintained the rate of 3% as legal interest for this whole year, so that no incident regarding the current rate ultimately produced the approval of this law. The legal interest on the money is the one that applies if no interest rate has been agreed between the creditor and the debtor. This is in the event that there is an obligation to pay interest or if there has been a delay in repaying the loan. We receive the annual amount of legal interest on the money (because it is an order of magnitude annually), and with this result we can get the amount we need. The legal interest on money in 2022 is 3.00%. As we said in the first paragraph, the legal interest of money is an annual reference. If the loan was valid for one year, we would have to apply the legal interest of the current year to that amount, and we will receive the amount that will be repaid. The General Law on the State Budget is the one that sets the guidelines for the calculation of legal interest. To do this, a formula is followed that helps determine the exact amount that the debtor must pay. This corresponds to the amount due for the delay period divided by 365 days. Subsequently, this result is multiplied by the legal interest rates, which are quite simple and that anyone can calculate quickly.
In the case of certain transactions where it is not possible to recover the due in time, it is when legal interests arise. This is a type of compensation intended for cases of breach of an acquired obligation. These include loans, debts and other obligations of an economic nature. It is provided for in the Law on the General State Budget and applies when the problem cannot be solved between the parties. The calculation of the legal interest is the last instance you can go to in these cases. Legal interest on money is a type of compensation for breaches of obligations (debts, loans, etc.) if the parties have not provided for such compensation. It is established by the Civil Code and regulated and updated annually in the Law on the General State Budget (hereinafter referred to as the Law on the Budget). Similarly, in 2019 and 2020, it also led to the extension of the interest rate in force the previous year through the application of the constitutional mandate, in which case the lack of legal consent was due to the situation of the parliamentary minority of the PSOE government, which also failed to gather in time the necessary support for the implementation of the budget law before the beginning of these years. Those of 2018 therefore remain in force. To determine legal interests prior to 1985, see the previous section on historical context. The legal interest on the money is the percentage established by law, which is used to calculate the amount of damages that the debtor must pay to the creditor if he is in default, that is, in culpable delay (intentional or negligent) in the performance of his obligation to pay a certain amount of money – legal tender – that he owes.