חוק פסיקת ריבית והצמדה (תיקון מס' 9), התשפ"ד-2023Law on Determination of Interest and Linkage (Amendment No. 9), 2023 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Interest and Linkage Adjudication Law, 1961 was amended in light of the changes that have occurred in the Israeli economy and with the aim of ensuring that the arrangement more accurately balances the interests of creditors and debtors, while maintaining the simplicity of the arrangement as much as possible. This includes establishing shekel interest as the default interest, establishing a mechanism for adding "arrears fees" instead of "default interest" and canceling the "compound interest" mechanism applied to it, as well as canceling interest on foreign currency. In addition, indirect amendments were made to laws that refer to the provisions of the said Law or to definitions appearing in it, in order to adapt them to the new arrangement. The most significant indirect amendment is in the Execution Law, 1967, according to which arrears fees will not apply to debtors who pay their debt in installments. In addition, the discretion of execution officers to reduce arrears fees in order to promote collection in files and debt closure was expanded. In addition, various amendments were made to the said Law with the aim of implementing the changes in the Interest and Linkage Adjudication Law.

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