The prescribed rate of interest has been changed with effect from 1 September 2020 to 7.00% per annum. The previous rate was 7.25%.
According to the Prescribed Rate of Interest Act, interest on debts where no rate is prescribed is calculated at the repo rate plus 3.5%. The prescribed rate of interest applies to all
The Supreme Court of Appeal has ordered an insurer to pay interest from the date upon which the indemnity should have been furnished rather than the date the insured issued a summons.
In Viking InShore Fishing vs Mutual & Federal Co Ltd the court found that the insurer was liable to pay the claim relating
Amendments to the Prescribed Rate of Interest Act are on the horizon. The Judicial Matters Amendment Bill, 2015 seeks to change the prescribed rate of interest to the repurchase rate (the rate at which banks borrow rands from the Reserve Bank) determined by the South African Reserve Bank, plus 3.5% per year. The reasoning behind