THE CAPITALIZATION OF INTERESTS IN PERUVIAN LEGISLATION AND ITS IMPLICATION IN THE PROCEDURAL FIELD

Abstract

The power granted by article 1244 of the civil code, to the Central Reserve Bank of Peru - BCRP, to establish the legal interest rate, has caused that entity within its regulations to establish a distinction between legal or natural persons considered within the system financial and others considered outside the financial system, either for the conditions, limits or the methodology to be applied in the determination of interest rates. Focusing specifically on the scope of legal or natural persons considered outside the financial system, the civil code in its article 1249, establishes a strict limitation to anatocism (capitalization of interests), however, the BCRP through the website of the Superintendency de Banca, Seguros y AFP (SBS) and within the powers granted by article 1244 of the Peruvian Civil Code, as well as article 51 of its organic law: Decree Law No. 26123, publishes an effective legal interest rate, which involves the capitalization of interest. Faced with this opposition of legal norms and taking into account the procedural environment where innumerable controversies are aired, it is appreciated that the judges choose to give greater validity to the civil code than to the regulations of the BCRP, happening that the interests that have resulted from the capitalization are not recognized.