Prime Rate of Interest
The prime rate of interest is a reference point that banks and other lenders base their loan rates on.
If a loan is made to a political participant (registered party, candidate or constituency association) at an interest rate below the prime rate of the government's principal banker the difference between the amount of interest that would be payable at that prime rate and the amount being charged for the loan is considered a contribution (or a transfer if the loan is from one entity to another entity).
The prime rate of interest of the government’s principal banker is as follows:
Annual Interest Rate: 3.95%
Effective Date: October 25, 2018