Significant reduction in interest rate on judgment debts

PUBLISHED: 2nd February 2017

The rate of interest payable on judgment debts under section 26 of the Debtors (Ireland) Act, 1840, has been reduced from 8% to 2%.

This change came into effect on 1 January 2017 pursuant to the Courts Act 1981 (Interest on Judgment Debts) Order 2016.

The Order was made by Minister for Justice and Equality, Frances Fitzgerald, in exercise of the powers conferred on her by section 20 of the Courts Act 1981. Section 20 enables the Minister to vary the rate of interest specified in section 26 of the Debtors (Ireland) Act, 1840 if, having regard to the level of rates of interest generally in the State, he or she is satisfied that it ought to be varied. The rate of 8% had been in place since January 1989.

For further information, please contact Íde O'Neill at ioneill@lkshields.ie.