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

The basic rate of interest as laid down by 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 for the most recent main refinancing operation of the European Central Bank on 30 June 2009 was 1.00%. Since 1 January 2009, the relevant date for the last change in the basic interest rate, the interest rate for the main refinancing operation has fallen by 1.50 percentage points (the fixed interest rate for the last main refinancing operation in December 2008 stood at 2.50%).

Beginning on 1 July 2009, this amounts to a basic rate of interest of 0.12% pursuant to the German Civil Code (down from 1.62%).

The new basic rate of interest will be announced in the 2 July 2009 (No 95) issue of the Federal Gazette.