Countries › Dominican Republic › Guide › 16. What is normal abroad but not here › No interest rate ceiling

No interest rate ceiling

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-30 · Status: Stable

Many countries cap interest or set a legal default rate; here rates in pesos and foreign currency are set freely. The 1919 legal interest order is repealed, so a contract with no default interest clause leaves a gap. The rules that do apply are about disclosure: annual terms, signed contracts and no charges that were not agreed.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Interest rate ceiling	None Ley 183-02 art. 24, as of 2026-10-30 · in force
Statutory legal interest	Repealed Ley 183-02 art. 91, as of 2026-10-30 · in force
Contracts in foreign currency	Valid, debts are paid in the agreed currency Ley 183-02 art. 24, as of 2026-10-30 · in force

The rule

1. Monetary and financial operations run on free market terms, and interest rates in national and foreign currency are set freely among market agents.Ley 183-02 Monetaria y Financiera, art. 24, 2002-11-21 official text · verified 2026-10-30

2. Executive Order 312 of 1 July 1919 on legal interest is expressly repealed.Ley 183-02 Monetaria y Financiera, art. 91, 2002-11-21 official text · verified 2026-10-30

3. Money debts are paid in the agreed currency and, failing express agreement, in national currency, which is the only legal tender.Ley 183-02 Monetaria y Financiera, art. 24, 2002-11-21 official text · verified 2026-10-30

4. Financial entities must post rates and costs in annual terms, and oral contracts are banned for them.Ley 183-02 Monetaria y Financiera, art. 52 b, 2002-11-21 official text · verified 2026-10-30

Worked example

Illustration only: a supplier invoice of RD$1,000,000 (US$16,420.17) with a clause for 2% monthly default interest adds RD$20,000 (US$328.40) a month. With no clause, there is no statutory rate to fall back on, so the claim depends on the judge and on general contract rules.

Step by step

Put a default interest clause in every credit and supply contract.
State the currency of payment.
State the rate in annual terms for finance products.
Have intragroup loans reviewed against tax limits.

Common traps

Free rates do not remove transfer pricing or the art. 287 interest deduction limits in the tax section.
The consolidated Penal Code text we read has no offense using the word usury, but check other rules for consumer loans.
Banks and regulated lenders face more disclosure rules than private lenders.

Sources

← Leases: new law, long noticeConsumer guarantee and distance sale rights →

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