Compound Interest in International Disputes
Article from: TDM 3 (2004), in Arbitration - General Issues
In today's economic world, compound interest, and not simple interest, is the norm in both third-party financing and investment vehicles. Yet, in disputes between transnational contracting parties, simple interest awards are the norm. This odd disparity between awards of international tribunals and standard business norms can have striking consequences. In disputes between transnational contracting parties, awards of interest are often significant and, in some cases, may even exceed the principal owed. It is unclear why tribunals hearing disputes between transnational ...