Interest and Administrative Charges Regulations

7 (1) Subject to subsection (2), in the case of a late or missed payment on a concessionary loan, interest is payable on the amount of the late or missed payment and accrues during the period beginning on the due date and ending on the day before the day on which payment is received by Her Majesty or an agent of Her Majesty, at a rate equal to the difference between the rate set out in section 5 and the concessionary rate set out in the loan agreement.

(2) Subsection (1) does not apply to

• (a) concessionary loans that are made to sovereign states and to which a multilateral debt relief agreement or undertaking to which Canada is a party applies; or

• (b) concessionary loans that are made to international organizations or sovereign states for the purpose of developmental assistance.