If a Chinese debtor owes you money in USD, EUR, JPY or other currencies, how should you make it pay the default interest?
It needs to give you a refund for your payment in dollars or compensate you for your losses in euros, but it fails to pay you by the due date.
If you have agreed in the contract on the calculation of default interest for overdue payment, you can ask it to pay the default interest in accordance with the calculation method stated in the contract.
However, what if you have not agreed on the method of calculating default interest?
The Chinese court states in its judicial policy that you can calculate the default interest at the Chinese banks’ interest rate for the same type of foreign currency loans over the same period.
However, Chinese banks have a variety of loan products, and it is still uncertain which product’s default interest rate will prevail.