As effective on 1 August 2014, the prescribed rate of Mora interest has been amended to 9%. Mora interest refers to the interest that can be charged when payment is overdue and no interest have been agreed upon between the parties. It is also the interest that is used in court orders for claims for damages.
Mora interest therefor does not impact a traditional credit agreement where the parties have agreed to the interest.
Below is the official notice from the Department of Justice and Correctional Services:
DEPARTMENT OF JUSTICE AND CORRECTIONAL SERVICES
PRESCRIBED RATE OF INTEREST
(SECTION 1 OF THE PRESCRIBED RATE OF INTEREST ACT, 1975)
(1) Under section 1(2) of the Prescribed Rate of Interest Act, 1975 (Act No. 55 of 1975), and after consultation with the Minister of Finance, I, Tshililo Michael Masutha, Minister of Justice and Correctional Services, hereby prescribe a rate of interest of 9, 0 per cent per annum as from 1 August 2014 for the purposes of section 1(1) of the said Act.
(2) Government Notice No. R. 1814 of 1 October 1993 is hereby withdrawn.