Interpretations of the Supreme People's Court on Issues Regarding Application of Law to Calculation of Debt Interests during a Deferred Performance Period in Enforcement Process ("Interpretations") has come into force on August 1, 2014

The system of debt interests during a deferred performance period is one of the enforcement measures in “Civil Procedure Law”, which aims to urge the debtor to perform the obligations in time and compensate to the creditor. However, the relevant articles are too general, so “Interpretations” has stipulated many aspects of the system, mainly include:

(1)The debt interests during a deferred performance period includes:

Average interest on the debt is the interest in effective legal instruments, according to the provisions of substantive law (such as contract law) determined.

Doubling the interest portion of the debt refers to the enforcement proceedings, the debtor’s delay in performance due to the interest in accordance with Article 253 of the Civil Procedure Law provisions should be more to pay.

(2)The calculation methods of the debt interests during a deferred performance period include:

Average interest on the debt shall be calculated according to the effective legal instruments; if such effective legal instruments have not decided on such interest, it shall not be counted.

Doubling the interest portion of the debt=the debts other than the average interest on the debt in the effective legal instruments×0.0175% per day×the deferred performance dates

(3) The calculation methods for special occasions include:

In a case with foreign currency payments, where the enforcement applicant requires calculating in terms of Renminbi, the court shall give permission.

In an enforcement recovery procedure, the original enforcement applicant shall bear the doubling the interest portion of the debt when the applicant delays to pay.