BANKING & FINANCE | Court of Appeal applies the new principle stated by the Italian Supreme on Court Euribor manipulation and repayment plan recalculation

On 24 January 2024, the Court of Appeal of Trieste issued an order applying for the first time the new principle stated by the Italian Supreme Court in case No. 34889/2023 on the invalidity of the interest rate fixed on the basis of a Euribor subject to market manipulation by financial institutions (see our Echo of January 2024). Specifically, the Court of Appeal of Trieste deemed it necessary to appoint an expert (Consulente Tecnico d’Ufficio) to, inter alia, (a) recalculate the repayment plan by applying the statutory interest rate (interessi al tasso legale) pursuant to Articles 1346 and 1284, paragraphs 1 and 3, of the Italian Civil Code, (b) recalculate the repayment plan by applying the alternative interest rate provided under Article 117, paragraph 7, of the Italian Consolidated Law on Banking, and (c) redetermine the debt/credit position between the parties by replacing the Euribor interest rate with the statutory interest rate for the relevant instalments of the period starting from 6 November 2006 and ending on 30 May 2008.

Newsletter n. 93 – February 2024