L’octroi d’intérêts composés par les tribunaux arbitraux d’investissement

July 01, 2011

This article analyzes the recent practice of international investment tribunals which consists in granting compound interest - rather than simple interest - on the damages awarded to the prevailing party in the arbitration. This judicial practice differs from the general practice of international tribunals, which generally grant simple interest rather than compound interest on damages. In addition, the award of compound interest has become quasi-systematic in the last ten years, international investment tribunals deeming themselves entitled to grant this type of interest in spite of the tenuous grounding of its award under international law.

Conversely, this article argues for the award of compound interest by international investment tribunals on a case-by-case basis. In our view, international investment tribunals should take into account the economic foundations of compound interest, particularly in light of the nature of the investment at stake, before granting compound interest. Under this condition, the award of compound interest can usefully adjust the calculation of damages by taking into account the period flowing between the date of the violation and that of the condemnation.