CCTV News: On February 12, the Supreme People's Court issued the "Supreme Court's Approval on the Calculation of Interest on Overdue Payment of Currencies and Hong Kong, Macao and Taiwan Currencies".

The "Reply of the Supreme People's Court on the Calculation of Interest on Overdue Payment of Foreign Currencies and Hong Kong, Macao and Taiwan Currencies" was adopted at the 1933rd meeting of the Judicial Committee of the Supreme People's Court on November 25, 2024 and is now announced and will come into effect on February 13, 2025.

Supreme People's Court

February 12, 2025

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Fashi [2025] No. 2

Supreme People's Court

Reply on the calculation standards for interest calculation of foreign currencies and Hong Kong, Macao and Taiwan currencies

(Adopted at the 1933rd meeting of the Judicial Committee of the Supreme People's Court on November 25, 2024, and will come into effect on February 13, 2025)

High People's Courts of all provinces, autonomous regions, and municipalities directly under the Central Government, the People's Liberation Army Military Courts, and the Production and Construction Corps Branch of the Higher People's Court of the Xinjiang Uygur Autonomous Region: Recently, some high people's courts have submitted instructions on how to determine the relevant interest rates when calculating interest losses due to overdue payments from foreign currencies and Hong Kong, Macao and Taiwan currencies. After research, the reply is as follows: 1. If the parties claim interest loss for overdue payments in foreign currencies and have agreed on the interest rate calculation standards, the parties shall handle the matter according to the agreement. However, if the interest rate calculation standard agreed by both parties exceeds the upper limit of the applicable law for the disputes involved in the case, the excess will not be supported.

2. When the parties do not agree on the calculation standards for interest rate or the agreement is unclear, the calculation standards for overdue payment interest shall be determined according to the following methods:

(I) The calculation standards for overdue payment interest for US dollar can be determined by the People's Court based on the specific circumstances of the case published in the "China Monetary Policy Implementation Report" scheduled on the official website of the People's Bank of China.

(II) For the calculation standards for the euro, pound, yen, Australian dollar, Swiss franc, Canadian dollar, New Zealand dollar and Singapore dollar overdue payment interest, the euro interbank lending rate (EURIBOR), British pound overnight average interest rate (SONIA), Tokyo overnight average interest rate (TONA), Australian dollar bank bill rate (BBSW), Swiss franc guaranteed overnight interest rate (SARON), Canadian dollar secured overnight interest rate (CORRA), New Zealand dollar bank bill rate (BKBM), and Singapore dollar unsecured overnight interest rate (SORA).

(III) For the calculation standards for overdue payment interest in other foreign currencies, you can refer to the benchmark interest rate of this currency published on the official website of the central bank of the relevant countries.

3. If the parties agree on the calculation standards for overdue payment interest of Hong Kong dollars, Macau patacas and Taiwan dollars, the parties shall implement it in accordance with the provisions of Article 1 of this approval. If the parties have not agreed or the agreement is unclear, they can refer to the Hong Kong interbank lending rate, Macau dollar comprehensive interest rate, and Taiwan dollar basic loan interest rate respectively.