Non-payment by the guarantor of a foreign currency loan

The guarantor of the foreign currency loan did not pay the debt to our client — one of the largest Russian banks.

The reason is the fluctuation of the exchange rate, due to which the amount of payments on the debt of the bankrupt borrower has become larger. Our opponent was supported by the courts of the first, appeal and cassation instances, but this did not stop us. We managed to defend our position in the Supreme Court of the Russian Federation. The court agreed that the borrower's debt in rubles cannot change the currency of payment under the loan agreement and the guarantee agreement, which was initially agreed by the parties.

The Supreme Court overturned the acts of lower courts and highlighted this case by including the case in the "Review of Judicial Practice of the Supreme Court of the Russian Federation" (No. 3, 2017).