PDVSA is an oil and gas company in Venezuela that exclusively exploits Venezuela`s oil and gas reserves, which are among the largest in the world. In 2016 and 2017, PDVSA opened funds under two credit contracts it entered into with Puerto Rican bank Banco San Juan Internacional Inc. In the case of PDVSA, this was part of a general trend that relocated Venezuelan commercial interests from the U.S. continental financial system to Puerto Rico (a non-common area of the United States) because of U.S. political pressure on Venezuela. An interpretation of the loan agreement must answer the question of what effect a negative benchmark interest rate has on the interest rate payable. If the parties` actual intention cannot be established or if the intentions of the parties differ, the agreement must be interpreted objectively. Regulators have repeatedly acknowledged that the credit market has made less progress than other markets in abandoning libor. This led to various initiatives at the beginning of the year to accelerate change, focusing on measures to mitigate some of the difficulties encountered in the cash markets: the Bank of England`s attempts to turn LIBOR into “turbo-loads” in cash markets: will they increase or reduce the risk of processes? In particular, the Bank of England has announced the release, from July 2020, of an index assistance index linked to SONIA, in order to help market participants to stop cash products based on LIBOR (which mature beyond 2021). It is therefore perhaps not surprising that the first intermediate step to be relaxed is in this market. The High Court recently reviewed a trial case under the Financial Services and Markets Act 2000 (FSMA) for alleged violation of the legal obligations of the Consumer Credit Sourcebook (CONC) for failing to take into account repeated credits in credit decisions: Kerrigan/Elevate Credit International Limited (t/a Sunny) (in Administration)  HCEW 2169 (Comm). The Tribunal also considered an application for an order under s.140B of the Consumer Credit Act 1974 (CCA), on the grounds that the relationship between the lender and the borrower was unfair to the borrower. Under Italian banking law, credito fondiario loans are loans granted by banks lasting more than 18 months and covered by a first mortgage ratio.
The maximum amount of these loans is set by the Bank of Italy and cannot currently exceed 80% of the value of the mortgaged assets (“loan to value”). The court also gave guidance on the s.140B-CCA appeal and found that the court will take into account compliance with the conc rules that articulate the objective of consumer protection. While important, rule violations will not be the only factor in assessing fairness.