Martial law and Art. 625 CC: 3% per annum and inflation
Martial law and Art. 625 CC: 3% per annum and inflation
The statutory regulation of debtor liability for late payment of monetary obligations is a significant component of Ukraine’s civil legislation. Article 625 of the Civil Code of Ukraine establishes a mechanism for compensating a creditor’s financial losses arising from a debtor’s failure to fulfil monetary obligations within the prescribed time limits. The introduction of martial law on 24 February 2022 has brought substantial changes to the application of these provisions, requiring detailed legal analysis.
Read more in the article by EVERLEGAL lawyers for the Yurydychna Gazeta (Legal Newspaper) at the link.
In focus:
- Definition and functional purpose
- Court practice on the legal nature of 3% per annum and inflation losses
- Limitation period and its calculation
- Extension and suspension of the limitation period during martial law
- A court case involving long-term delays
- Application of Art. 625 CC during martial law: differentiation by contract type
- Distinction between compensatory payments and penalties
- Mechanism for calculation and accrual
- Accrual of 3% per annum as the statutory minimum
- Restitution and the application of Art. 625 CC of Ukraine
- Practical recommendations for creditors
Our expert: Oleksandra Grachova, Junior Associate at EVERLEGAL
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