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,…