Lending rates are regularly agreed on a variable basis. The total interest rate usually consists of a reference interest rate and a margin. With reference interest rates being extremely low and with several indices even dropping below zero, it is hotly disputed where to “draw the line”. There are good reasons for the borrower paying at least the margin. The Supreme Court for Civil Matters however answers the question in the negative. Variable lending rates consist of the sum of the reference interest rates and interest margin. (3Ob88/17p)
Interest adjustment clauses: Reference interest rates apply even when below zero
