The Serbian ministry of finance has published the Rulebook on arm’s length interest rates that are applicable for 2020, which apply to interest rates on loans and credits between associated parties. The Rulebook was published in the Official Gazette of Republic of Serbia No. 21/2020 on 6 March 2020 and entered into force on 14 March 2020.
Interest rates in accordance with “arm’s-length” principle that apply on banks and financial leasing companies are-1.92% on short-term loans in RSD (2.71% RSD for long term); 3.11% on loans in EUR; 3.87% on loans in USD; 2.54% in CHF; 3.92% in SEK; 1.88% in GBP; 3.23% in RUB.
Interest rates for other companies are- 4.71% on short-term loans in RSD; 5.55% on long-term loans in RSD; 2.64% on short-term loans in EUR and dinar loans indexed in EUR; 2.87% on long-term loans in EUR and dinar loans indexed in EUR; 4.05% on long-term loans in USD and dinar loans indexed in CHF (4.83% on short-term); and 7.52% on long-term loans in dinar loans indexed in CHF (7.84% on short term).
The abovementioned interest rates only apply to the amount of interest that is in accordance with the arm’s length principle.
