The Merchant Shipping (Liability of shipowners and others) (Rate of interest) Order 1999

January 2000

With effect from 1st September 1999 new provisions apply in the United Kingdom concerning the rate of interest which is to be used in calculating the amount of the limitation fund under the provisions of the Convention on Limitation of Liability for Maritime Claims 1976.

Where the incident giving rise to the claims for which the benefit of limitation is sought occurred prior to 1st September 1999, but the fund is constituted on or after that date, the following rates of interest apply:-

(i) 12 per cent from the date of the occurrence until 31st December 1994

(ii) 6.75 per cent on and after 1st January 1995 until 31st August 1998

(iii) 8.5 per cent on and after 1st September 1998 until 31st August 1999

(iv) the prescribed rate on and after 1st September 1999, or

where the occurrence takes place on or after 1st September 1999, the prescribed rate.

The "prescribed rate" means one percent more than the base rate quoted from time to time by the Committee of London Clearing Bankers or, where there is for the time being more than one such rate, the lowest of them.