Caribbean Netherlands: maximum permitted loan interest rate to be reduced to 21%
The maximum permitted loan interest rate will be reduced to 21% with effect from 1 April 2024. The maximum permitted loan interest rate is currently 22%. A reduction announced last year was later withdrawn. Now the reduction is still being implemented.
Under the BES Islands Financial Markets Decree, the maximum loan interest and the maximum late payment fee is set by ministerial order. The note to this order states the intention to reduce the maximum loan interest rate in phases over the coming years. The maximum rate was accordingly reduced to 22% with effect from 1 January 2020, and will be reduced further to 21% with effect from 1 April 2024.
Compliance with the 22% maximum that has applied since 1 January 2020 has been good, there has been no disruption in the market and the measure has proved to be effective in preventing exorbitant rates of interest. Most lenders already use interest rates that are below the 21% maximum.
Questions
More information is available in the Regulation for the BES Islands Financial Markets (Regeling financial markten BES). You may also send an email to: info@afm.nl.Contact for this article
Would you like to receive the latest news from AFM?
Subscribe to our newsletter, we will keep you up-to-date.