Compliance
Default Interest
Interest payable on a monetary claim that has not been paid by its due date.
Definition
Default interest (dröjsmålsränta) is the interest that a debtor is legally obligated to pay to a creditor when a monetary claim is not settled by its agreed-upon or legally stipulated due date. This interest serves as compensation to the creditor for the financial loss incurred due to the delayed payment and acts as an incentive for the debtor to fulfill their obligations promptly. Under the Swedish Interest Act, the rate of default interest is typically calculated based on the reference rate set by the Swedish Riksbank, plus a statutory addition, usually eight percentage points for outstanding claims. It is a civil remedy, not a criminal penalty.