Over the last few months, the financial press has been filled with reports of negative interest rates. For example, on December 18 2014, the Swiss National Bank announced that it would move from a zero percent interest rate to a charge of 0.25% on deposits from commercial banks. This creates a negative interest rate on Swiss National Bank deposits. On June 18 2015, the Swiss National Bank announced it would maintain a rate of negative 0.75%, which has now remained unchanged since January.

In mid-May, Portugal sold a six-month government bond at a negative interest rate of 0.002%. In late March, GDF Suez sold a two-year zero yield bond. Some lucky Europeans have actually benefitted from negative interest rates on consumer loans.

Originally published in International Financial Law Review on July 12, 2015.