The Deutsche Bundesbank calculates the basic rate of interest pursuant to section 247 (1) of the German Civil Code (Bürgerliches Gesetzbuch) and publishes its current level in the Federal Gazette (Bundesanzeiger) pursuant to section 247 (2) of the German Civil Code.

The basic rate of interest pursuant to the German Civil Code serves primarily as a basis for calculating default interest (section 288 (1) sentence 2 of the German Civil Code). It changes on 1 January and 1 July each year by the percentage points by which the reference rate has risen or fallen since the last change in the basic rate of interest. The reference rate is the interest rate for the most recent main refinancing operation of the European Central Bank prior to the first calendar day of the six-month period concerned.

The fixed interest rate on the most recent main refinancing operation of the European Central Bank on 28 June 2016 is 0.00%. This is 0.05 percentage point lower than the fixed interest rate on the main refinancing operation of the European Central Bank as at 29 December 2015 (namely 0.05%), which was relevant for the last announcement of the basic interest rate as of 1 January 2016.

Beginning on 1 July 2016, this amounts to a basic rate of interest of -0.88% pursuant to the German Civil Code (down from -0.83%).

The new basic rate of interest will be announced in the Federal Gazette of 29 June 2016.