Determine the Interest Rates of Key Foreign Currency Loans in the Trial of Foreign-Related Civil and Commercial Cases

 2018-08-24  912


· Document Number:No. 23 [2006], Civil Division IV, Supreme People's Court

· Area of Law: Banking & Finance

· Level of Authority: Documents of Judicial Interpretation Nature

· Date issued:01-15-2010

· Effective Date:01-15-2010

· Issuing Authority: Supreme People's Court

· Status: Effective

 

Reply of the Supreme People's Court on the Request for Instructions on How to Determine the Interest Rates of Key Foreign Currency Loans in the Trial of Foreign-Related Civil and Commercial Cases
(No. 23 [2006], Civil DivisionIV, Supreme People's Court on January 15, 2010)
The Higher People's Court of Shanghai Municipality:
Your Request for Instructions on How to Determine the Interest Rates of Key Foreign Currency Loans in the Trial of Foreign-Related Civil and Commercial Cases (No. 181 [2006], HPC, Shanghai) has been received. Upon deliberation, the following reply is hereby made:
In accordance with the financial system of China, only financial institutions can engage in financial business and it is better to determine the standards for calculation of interest losses as claimed by non-financial institution creditors on the basis of the interest rates of deposits; where financial institution creditors claim interest losses and it is necessary to adopt the interest rates of foreign currency loans as the calculation standards, it shall be determined on the basis of the claims of the parties and the specific case circumstances.