Prescribed Rate of Interest Act
- Commenced on 23 May 1986
- [This is the version of this document at 31 December 2016 and includes any amendments published up to 31 December 2017.]
- [Note: This version of the Act was revised and consolidated by the Law Development Commission of Zimbabwe]
1. Short titleThis Act may be cited as the Prescribed Rate of Interest Act [Chapter 8:10].
2. InterpretationIn this Act—“judgment debt” means any sum of money or part thereof due in terms of any judgment or order of a court of law, including an order as to costs, but does not include any interest that does not form part of the principal sum of a judgment debt;“Minister” means the Minister of Justice, Legal and Parliamentary Affairs or any other Minister to whom the President may, from time to time, assign the administration of this Act;“prescribed rate” means the rate of interest prescribed in terms of section seven.
3. Application of Act to StateThis Act shall bind the State.
4. Interest on certain debts to be calculated at prescribed rateIf a debt bears interest and the rate at which the interest is to be calculated is not governed by any other law or by an agreement or trade custom or in any other manner, such interest shall be calculated at the prescribed rate as at the date on which such interest begins to run, unless a court of law, on the ground of special circumstances relating to that debt, orders otherwise.
5. Interest on judgment debt
6. Interest on illiquid claims
7. Minister to prescribe rate of interestThe Minister may, by statutory instrument and with the approval of the Minister responsible for finance, prescribe a rate of interest for the purposes of this Act.
8. Transitional provisionsWhere as a result of a notice in terms of section seven, the prescribed rate of interest is fixed, increased or reduced, such increase or reduction shall, in relation to debts or judgment debts that became payable before the date of commencement of the notice, apply only to interest accruing after that date.
9. In duplum rule not to apply to judgment debtsThe rule of the common law known as the in duplum rule, that prohibits the payment of outstanding interest in excess of the amount representing the capital or principal sum of a debt, does not apply to judgment debts.[section inserted by section 26 of Act 16 of 2007]
History of this document
23 May 1986