Law that standardizes interest rates is advantageous to debtors, says lawyer

Sanctioned this week, the law that standardizes interest and monetary correction (law 14.905/24) has both positive and negative aspects. On the one hand, it standardizes accounting and financial practices, reducing discrepancies in the courts. On the other hand, it uses a calculation that can reduce the penalty for debtors. This is what lawyer Armin Lohbauer, from Barcellos Tucunduva Advogados, says.

According to the expert, "the new law establishes monetary correction by the IPCA and interest by the Selic rate. The positive aspect is standardization, since previously several courts used different indices, which led to doubts and legal uncertainty."
However, the lawyer explains that the Selic rate today is lower than the rate of 1% per month that used to be applied in many cases of late payment. "It is possible to say, colloquially, that it has become cheaper for debtors and worse for creditors," he says.

Improvements
For Lohbauer, there is room for improvement in the new legislation, and it is important to consider how the new rules will be implemented in judicial and contractual relationships that are already underway.
"The transition must be made in a clear and orderly manner, avoiding confusion and unnecessary litigation. This means clearly defining when the new rules will apply and whether there will be adaptation periods for ongoing contracts and lawsuits."
The expert also points out that implementing financial education programs for both companies and citizens about the changes in the law can help maximize the benefits. "This includes detailed explanations of how to calculate monetary restatement and interest, and establishing mechanisms for monitoring and continually reviewing the rules can ensure that the law remains up to date."

Monetary correction

In addition, the lawyer recalls that, established in 1964 to allow the government to finance itself by selling interest-bearing government bonds, monetary correction ended up spreading throughout the Brazilian economy.

According to him, companies have adopted it to correct balance sheets and reduce taxes by readjusting their expenses. The financial market has used it to remunerate investments and attract investors, and even long-term contracts, such as leases and rentals, have included adjustments in their clauses.

"It's difficult to compare the impact of this initiative with other countries, since the United States and European countries, for example, also have inflation protection mechanisms, but not in the generalized and automatic way on prices, wages and contracts, as is the case in Brazil," he concludes.