Legal interest (moratory) is the interest due to the delayed execution of an obligation. The difference between the contractual and legal interest rate is that the contractual interest is a consideration (art. 240 LOC) which the borrower pays to the lender for the use of the money or substitutable assets, and the legal-compensation for damages (art. 86 LOC).

The amount of the legal interest is determined in decree of the Council of Ministers No 72/08.04.94 (SG 33, 1994). Decree refers to the interest under art. 86, para. 1 LOC and in the light of the compensation due in the case of arrears of discharge and not for determining interest on a contractual relationship. In 2012, the decree no 72/08.04.94 was revoked and the legal interest is determined according to the rules given in decree of the Council of Ministers No 100/29.05.13 with Decree No 426 of 18 December 2014 again changed the order for determining the amount of the legal interest on arrears of cash liabilities (SG 106 of 23. 12.2014)

The determination of the amount of legal interest for overdue debts depends on whether the obligation is in leva, euro, or other currency. The daily amount shall be calculated on the basis of 1/360 part of the legal interest for arrears for the period. The texts of the two decrees are given below.

Each debtor should know and understand that the principal of his obligation is subject to legal interest when his debt is incurred (a writ of execution with a specified date from which the legal interest begins to be calculated). When the debtor is only in arrears and his debt is still not a judicial one, the interest for arrears is calculated according to the contractual terms under which he signed.