# 1/300 refinancing rate. Where and how is it applied

Contractual relations between counterparties include the condition of compensation for pen alties and fines using the requirements of Article 395 of the Civil Code of the Russian Federation. When a person sees the word "pen alty" in a utility bill or in the text of a loan agreement, he has a desire to figure out if it's a lot - 1/300 of the refinancing rate.

## Deciphering the term

The Central Bank of the Russian Federation regulates the macroeconomic balance in the Russian Federation.

The Central Bank acts on the dialectical formula of the exchange of money for goods and vice versa based on a system of rules, including lending rules. There must be a measure in everything - both in lending and in consumption. Therefore, the Central Bank of the Russian Federation lends to other CFIs at a fixed percentage. And accepts funds from banks on deposit, also under the amount of remuneration established by law.

The calculation of interest is based on inflation parameters. The value shows the value of money in the country.

The refinancing rate is the minimum percentage at which the Central Bank of the Russian Federation issues loansother banks. The same parameter is the maximum amount by which free funds of banks are placed.

For example, if Sberbank requests a loan from the Central Bank of the Russian Federation in the first quarter of 2018, it will receive a loan at 7.75%. And will offer its own customers at an attractive 19.9%. It does not matter for what reasons the client delays the loan payment. Sberbank will impose a pen alty of 1/300 of the refinancing rate.

## Units of measure

To measure the fee for lending to the periphery, the center introduced the term "basis point". Its size is determined by the accuracy of the key rate. The Central Bank of the Russian Federation dictates an indicator with two decimal places. The desired element is equal to 0.01. Readers, studying the December resolution of the Central Bank on the key rate, came across the phrase "reduce by 50 basis points." Until December 18, the country used the value of 8.25%. That is, the new regulator of credit relations was calculated as follows:

8.25% - 50 x 0.01%=7.75%.

## Where the indicator applies

Legislative regulations of the Russian Federation use the term "refinancing rate". But gradually into texts, for example, in Art. 395 of the Civil Code of the Russian Federation introduces a new term: "key rate". Both parameters are equalized in application to the calculation of the pen alty.

In civil law relations, the percentage parameter is used to regulate the state of financial settlements:

1. For late payment, for example, utility bills, a pen alty of 1/300 of the refinancing rate.
2. Sanctions for late transfer of tax.
3. Forfeit under the loan agreement, unless otherwise specified in the text of the agreement.
4. Pen alty for violation of the terms of the agreement between business entities, if the parties did not agree on other parameters when concluding.

The first four paragraphs accept the calculation of 1/300 of the refinancing rate for each day of delay.

1. Pen alty for delayed wages. According to the Labor Code, article 236, a negligent employer is obliged to pay a fine to the employee at the rate of 1/150.
2. Taxable base on income from the deposit. Here, the central lending parameter and the deposit rate on the deposit are taken into account. On a ruble deposit, income tax is charged on the difference between the deposit interest and the amount of the key rate, increased by 5 points. Nine are added to the foreign currency deposit. For example, the income on the ruble deposit amounted to 12%. The allowable non-taxable value is 7.75 + 5=12.75. There are no grounds to charge tax on deposit income. But if the income exceeds the percentage calculated above, then a tax of 13% will be charged on the difference.

## Calculation formulas

The mathematical expression for calculating the pen alty is as follows:

R=R/300 x D /100 x C, where:

P - the amount of the pen alty in rubles;

R/300 - one three hundredth of the rate, which is accepted on the basis of the decision of the Central Bank of the Russian Federation.

D - the amount of overdue payment in rubles;

С – number of days of delay in payment (calculated from the day following the date of payment).

In simple terms, it is necessary to divide the current key parameter Р into three hundred. You will receive interest for one day of delay. Multiply the resulting value by the amount of debt D and divide by 100. This is the amount in rubles payable for one day of delay. It remains to multiply the result by C - the delay period in days. The sanction is ready to be presented.

Example 1. Company A is obliged to pay company B in the amount of 200 thousand rubles. The due date is December 15th. The payment was made on January 10th. The due date starts on December 16th. Total 16 + 10=26 days late. Then the pen alty 1/300 of the refinancing rate is calculated as follows:

P=7, 75/300 x 200,000/100 x 26=1343 rubles 33 kopecks.

Example 2. Citizen A is obliged to pay rent for November to the Unified Settlement Center before December 25th. The expected payment is 8 thousand rubles. But the New Year holidays knocked down the personal budget. The citizen reported the funds only on January 18th. For 24 days of delay, pen alties were charged in the amount of:

P=7, 75/300 x 8000/100 x 24=49 rubles 60 kopecks.

This amount will be reflected in the January receipt.

## Appetite statistics

Requests of the Central Bank change periodically. Information has been available on the website of the main financial regulator since 2013.

Indicators for 2017 were:

 Setting expiry date Size of indicator, % Change Approval Day 2017 18.12 - … 2018 7, 75 December 15 30.10 – 15.12 8, 25 October 27 18.09 – 29.10 8, 50 September 15 19.06 – 17.09 9, 00 June 16 02.05 – 18.06 9, 25 April 28 27.03 – 01.05 9, 75 March 24 2016 19.09.2016 – 26.03.2017 10, 00 September 16

Example. A person received a loan with a planned last payment in the amount of 12 thousand rubles on November 16, 2017. But in the fall, he could not cope with the debt load and paid the amount only on January 10, 2018. The calculation of the pen alty looks like this:

Debt period 1 from November 17th to December 17th is 31 days. The refinancing rate in the period is 8.25%. Then the pen alty amount is calculated as follows:

П1=8, 25/300 x 12000/100 x 31=102, 30 rub.

Debt period 2 from December 18th to January 10th is 24 days. The key rate is 7.75%. In this case, the amount of the pen alty is equal to

П2=7, 75/300 x 12000/100 x 24=74, 40 rub.

The total amount of the accrued interest is equal to

P=P1 + P2=102, 30 + 74, 40=176, 70 rub.

We hope this information was helpful.