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) as stipulated by 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 of 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 28 June 2011 was 1.25%. Since 1 January 2011, the relevant date for the last change in the basic interest rate, the fixed interest rate has risen by 0.25 percentage point (the fixed interest rate for the last main refinancing operation in December 2010 stood at 1.00%).

Beginning on 1 July 2011, this amounts to a basic rate of interest of 0.37% pursuant to the German Civil Code (up from 0.12%).

The new basic rate of interest will be announced in the Federal Gazette of 30 June 2011 (No 96).