The Central Bank of Argentina (BCRA) approved the dissemination of a new statistical series, the Default Interest Rate (TIM), in order to provide a new tool for the courts to determine default interest for peso debts under the provisions of section 768(c) of the Civil and Commercial Code of Argentina. The project was submitted to public consultation.
The TIM is calculated based on the average of a passive interest rate (corresponding to 30-day peso time deposits) and an active interest rate (resulting from the weighted average of the rates of peso loans granted through single-signature documents and personal loans).
The average daily interest rate used as the basis for calculating the TIM fluctuates within two bands aimed at preserving the value of the debts and guaranteeing their reasonableness. In this sense, the effective daily rate cannot exceed the daily variation of the Reference Stabilization Coefficient (CER) plus 3% effective annual rate, nor be lower than the daily variation of the CER minus 3% effective annual rate.
In the section of Services and Procedures In the BCRA’s Services and Procedures section, users will be able to access the TIM Calculator, which allows estimating the interest and the total amount resulting from its application based on an initial amount and a given period. Likewise, the corresponding resolution with the methodological annex will be published in the portal, and in the Statistics and Indicators section, the historical series will be available, updated daily and in Excel format.
With this decision, the BCRA reaffirms its commitment to regulatory transparency, citizen participation and administrative simplification, offering a new tool that contributes to strengthening legal certainty and promoting predictability, reasonableness and fairness in economic relations.
